Woolworths says thankyou to staff with shares and store credit

Woolworths will give over 100,000 workers shares and store credit as a ‘thank you’ in the wake of the COVID-19 crisis.

A Woolworths worker operates behind a plexiglas screen, in just another sign of the impact the coronavirus pandemic has had on operations this year. Picture: Dallas Kilponen

Woolworths will reward more than 100,000 of its staff, around half its total workforce, with a mix of shares and credit to spend at its stores as a “thank you” payment for their work this year, including during the coronavirus pandemic.

The bonus comes after staff faced angry shoppers and panic buying as the health crisis broke, and was flagged by chief executive Brad Banducci when the supermarket giant handed down its third quarter result. It also comes after Woolworths last year admitted underpaying 5700 workers.

On Tuesday, Mr Banducci wrote to workers to inform them that more than 100,000 staff in Australia and New Zealand would be given an ownership stake in the company as recognition for “their extraordinary efforts and contribution during a year of unprecedented challenges”.

Mr Banducci said under the plan, each eligible full-time worker in Woolworths would receive up to $750 worth of Woolworths shares for them to keep or sell in the future, with part-time eligible team members allocated shares on a pro-rata basis. The shares were available to those employed prior to March 1, 2020 and who are not already part of the group’s short-term incentive schemes (STI).

Woolworths closed up 27 cents at $35.55

The share issue would give Woolworths one of the biggest worker-dominated share registers in the country, although their small holdings of $750 each would still be dwarfed by the much larger share holdings of institutional investors.

“As a result of this offer, Woolworths Group will have the largest number of shareholder team members in the Australian and New Zealand markets,’’ Mr Banducci said in his memo to Woolworths staff.

Mr Banducci thanked the staff for their work during extraordinary times.

“From protests in Hong Kong, droughts and bushfires in Australia to the devastating volcanic activity in New Zealand and finally COVID-19, we have pulled together as a team to support each other, our customers and the communities in which we live and operate.

“This has taken an enormous amount of hard work and dedication and through our collective commitment we have indeed lived our purpose of creating better experiences together for a better tomorrow.

“We could think of no better way to thank and recognise our team than by making them shareholders in our group.

“The awarding of shares is not only recognition for our team's efforts over the last year, but also acknowledgment that our team has a critical role to play going forward as we all adjust to the new normal.”

All Australian full-time and part-time staff employed prior to March 1 and who do not participate in the STI schemes will also receive $250 in “team member PlusCard” credits. Australian casual staff employed prior to March 1 will receive $100. The PlusCards will be available to spend like a gift card in Woolworths Supermarkets, Metro, BIG W and BWS stores.

Casual staff in Australia who joined the group on or after March 1 to help cope with the COVID-19 demand surge will be able to keep their team discount until the end of December, irrespective of whether they stay with the company or not.

Last year Woolworths discovered it had underpaid around 5700 workers a total of as much as $315 million, with the total bill once interest and costs are included likely to reach as high as $400m.