Union push for Coles, Woolies to lower prices due to savings made from employing less staff through self service

The retail union calls on supermarkets to divert savings made by employing less staff due to self-serve technology to lower prices and help ease the cost of living crunch amid warnings of record levels of customer abuse and frustration before Christmas.

The powerful retail union has called on supermarkets to use the savings they have made from axing checkout staff to reduce prices on the shelf, with new research showing Australians feel ripped off by self-serve check-outs amid the cost-of-living crisis.

The poll of more than 1000 people found the vast majority of Australians believe supermarkets are using self-serve check-outs to force customers to do more work and cut their own costs without improving service or reducing prices.

The revelation comes amid warnings of record levels of customer abuse and frustration in the lead up to Christmas, with grocery prices surging by 5.3 per cent in the 12 months to October — bucking the downward trend.

The Essential poll found 67 per cent of Australians believed “Self-serve check-outs are just a way for supermarkets to reduce the number of staff they employ without improving service”.

Self service check-outs at Coles featuring a conveyor belt for shopping items. Picture: Facebook

Only 24 per cent agreed that “Self-serve check-outs push prices down by reducing expenses for supermarkets” compared to 44 per cent that disagreed and 26 per cent that strongly disagreed.

Shop, Distributive and Allied Employees Association National Secretary Gerard Dwyer said if supermarkets were going to cut costs by replacing people with machines they had a moral obligation to pass those savings on to the public — especially in the midst of the cost-of-living crunch.

“If supermarkets are going to cut costs by replacing people with machines they should put all those savings into lower prices for their customers and better wages for their workers,” he said.

“Failing that, they should provide more real human checkout operators for better customer service and to reduce tensions during this cost-of-living crisis.”

Latest ABS data shows food inflation was at 5.3 per cent in October up from 4.7 per cent in September and 4.4 per cent in August.

Self service check-outs at a Woolworths store in Sydney. Picture: Joel Carrett

By contrast overall inflation has gone from 5.2 per cent to 4.9 per cent over the same period.

The move back towards more people and less self-serve check-outs is also supported by the research, with a clear majority of Australians — 53 per cent — saying they “prefer the connection of a human on the regular check-outs”.

And on the controversial issue of using cameras to spy on shoppers at automated check-outs, more than 60 per cent said supermarkets should instead provide more customer service to reduce theft.

The poll follows another recent SDA survey of more than 4,000 retail workers that found over three-quarters had been verbally abused, and one in ten had been physically abused in the past year.

National Secretary-Treasurer of the STA Gerard Dwyer. Picture: Joel Carrett

There are fears that as cost-of-living pressures mount in the lead-up to Christmas that both customers and workers could be pushed to breaking point.

“Christmas always sees a rise in customer abuse, but with financial pressures and tensions running high, there’s a real concern things could be worse than ever this year,” Mr Dwyer said.

“We need to consider potential triggers for abuse and level-up prevention and support accordingly.”

Woolworths said it was always seeking to keep prices as low as possible and its overall number of employees had increased despite self-serve check-outs.

The supermarket said prices in some categories such as fruit and vegetables and meat had actually fallen.

“We work hard everyday to provide customers with value every time they shop with us,” a spokeswoman said.

“We know some customers prefer to be served by a team member and that’s why there is always that option in all of our stores.”