Woolworths reaches enterprise agreement with striking union workers

Supermarket giant Woolworths has delivered a huge update in the ongoing strike drama that left customers facing empty shelves.

Supermarket giant Woolworths has reached a deal with striking union workers at four distribution centres in Victoria and NSW.

In a statement from Saturday afternoon, the $37bn behemoth confirmed its Melbourne South Regional Distribution Centre would reopen as soon as Saturday evening after reaching a new enterprise agreement with the United Workers Union and the Shop, Distributive and Allied Employees’ Association.

The company’s Melbourne Liquor Distribution Centre, Wodonga Regional Distribution Centre and Erskine Park Distribution are also expected to reopen after being hit for 17 days of industrial action.

The strike led to empty shelves at some supermarkets across Victoria, the ACT and NSW.

Strike action hit Woolworths distribution centres in November. Picture: NewsWire/ David Crosling

Woolworths CEO Amanda Bardwell said the company was now focused on getting products out of the centres and restocking shelves.

“We would once again like to apologise to our customers. We know how frustrating it has been to shop in store and

online with us in recent weeks in Victoria, the ACT and parts of NSW,” she said on Saturday afternoon.

“We thank all of them sincerely for their understanding and patience.

“We would also like to thank all of the teams across Woolworths Group who have worked tirelessly to minimise the disruption as much as possible and take care of our customers.

“In particular we thank our teams in unaffected distribution centres who have helped maintain levels of supply while the four sites were closed.”

In evidence provided to the Fair Work Commission, Woolworths said about 40 per cent of distribution capacity at the four centres had been impacted, estimated at two million cartons.

The company also claimed to have lost some $50m in sales since the start of the industrial action.

The industrial action reduced stock levels at some supermarkets in Victoria, the ACT and NSW. Picture: NewsWire

Some 1500 workers walked off the job at the hubs following failed negotiations between the UWU and Woolworths.

Alongside standard pay disputes, the UWU expressed anger over how the company allegedly measured the performance of workers at the centres.

Signs from picketing workers read: “We are not robots!”

In a statement from Saturday, the UWU said it had won concessions surrounding performance metrics.

“Negotiations with the company finally saw real movement from Woolworths this week on its Framework, with a new clause to be added to workplace agreements that ensures that the workers will not be disciplined for the speed that they can work at and an acknowledgement that not everybody can pick at 100 per cent,” the union said.

“The new enterprise agreement won by workers breaks the link between measuring the speed of their work and automatic punishment if they fall behind – a system that effectively attempted to treat Woolworths warehouse workers like robots.”

UWU national secretary Tim Kennedy said the union had sought to protect worker well-being in the “AI-surveillance” era of work.

UWU national secretary Tim Kennedy holds a press conference at a worker picket on December 3, 2024. Picture: NewsWire/ David Crosling

“Today, warehouse workers at Woolworths have saved Christmas but more importantly, they have challenged one of the most significant threats to worker safety and well-being as we enter a new AI-surveillance era of work,” he said.

“This has been a very hard struggle to get to this point, with workers forgoing pay on strike for 17 days to stand united against a punitive performance management system, Woolworths called the Framework.

“This dispute is important because it was about the right of workers to have input into how AI algothrimic systems can be used to set the speed of work to undertake surveillance at work and ensure a system that is transparent, fair and respects fundamental humanness of people.

“Breaking the link between measuring the speed of workers and automatic discipline if they fall behind is a significant achievement of the workers and a sign that workers will have a say about how work is regulated as we move from the industrial age to the AI digital age.”

Woolworths said the UWU also sought pay increases in excess of 25 per cent over three years.

A statement from the SDA released to NewsWire said the final agreement delivered to workers included a 12.84 per cent wage increase over three years, along with a $1000 up front cash payment, increased weekend penalty rates for shift workers and a $500 up front gift card and a $500 gift card for the next two years.