Murray Watt intervenes as Woolworths strike spreads from supermarkets to booze supplies

The Albanese government is urging the supermarket giant and union to negotiate a speedy resolution to the stand off that has left shelves bare and caused beer and wine shortages.

Woolworth workers picket the Dandenong South Distribution centre. Picture: NewsWire / David Crosling

The Albanese government has intervened in the increasingly bitter Woolworths dispute, urging the supermarket giant and the United Workers Union to negotiate a speedy resolution to the stand off that has left supermarket shelves bare and caused beer and wine shortages.

Workplace Relations Minister Murray Watt, his office and officials from the Department of Employment and Workplace Relations have held discussions with Woolworths executives and UWU officials in recent days, and urged them to use the Fair Work Commission to reach a mutually satisfactory resolution to the dispute that has sparked 12 days of indefinite strike action by 1500 warehouse workers.

Woolworths has filed an application for commission orders to clear a picket outside a key distribution centre in Melbourne, revealing the strike has cost the company an estimated $50m in lost food sales.

Following an initial directions hearing on Tuesday afternoon, UWU national secretary Tim Kennedy said the commission had decided not to hear the application until Friday, with both sides to be given time to prepare evidence for the case.

Talks between the company and the union resumed on Tuesday, and Mr Kennedy said the company could end the strike by negotiating a reasonable outcome for workers.

He said the striking warehouse workers had been buoyed by $83,000 in donations to a strike fund, including $50,000 from the Electrical Trades Union.

Mr Kennedy confirmed he had held one-on-one discussions with Senator Watt about the dispute.

A federal government spokesman told The Australian: “The government has been in regular contact with Woolworths and the United Workers Union in recent days, and has made clear our expectation that both parties negotiate in good faith to find a speedy resolution to this dispute.

“Now that the dispute is before the Fair Work Commission, we urge the parties to make full use of the assistance the commission can provide to reach a mutually satisfactory resolution.”

The strike action is causing beer and wine shortages as the impact on customers spreads from supermarkets to the shelves of Dan Murphy’s and BWS outlets across Victoria and southern NSW.

UWU members are striking at four sites in the two states including the Melbourne Liquor centre which supplies alcohol to Dan Murphy’s and BWS outlets.

The outlets are owned by the Endeavour Group, which also owns a network of 350 pubs after its spin-off from Woolworths in June 2021.

An Endeavour Group spokeswoman told The Australian that it was “currently experiencing some stock shortages in a select number of Victorian and southern NSW stores”.

“We are actively working to replenish those products and are committed to ensuring our customers have access to our wide range of products and quality service during this busy time,” the spokeswoman said.

“The degree of impact on stock differs across our stores, with some locations experiencing minimal disruption. While deliveries continue, certain stores may experience a decrease in how often they receive new stock.”

The Australian found widespread shortages of cask wine and popular beer brands when it visited Dan Murphy’s stores across Melbourne’s southeast on Tuesday, with signs on display apologising to customers for the inconvenience. Pre-mixed drinks and cider were also in short supply at some stores.

“There’s a lot of shortages, the shelves are empty,” said Annie Bazely, a Woolworths customer in Malvern.

She said she had noticed shortages since Sunday, and was “disappointed” to find shelves completely empty of paper towels and toilet paper at her local Woolworths

Woolworths had originally insisted it had adequate contingency plans to cope with the industrial action but its shelves had become increasingly bare as warehouse workers approached almost two weeks of indefinite strike action.

The company announced the FWC application after failing to reopen its Melbourne South Regional Distribution Centre on Monday.

UWU members have blocked the site entry points with cars and protesters, with the company blaming the union for creating an unsafe environment for employees.

Woolworths said it was seeking FWC orders to prevent the UWU from blocking access to the Melbourne South Regional Distribution Centre and three other sites. It alleges the union has beached the good faith bargaining requirements in the Fair Work Act.

Woolworths workers at Dandenong South. Picture: NewsWire / David Crosling

In a statement to the Australian Stock Exchange, the company said some Woolworths supermarkets in Victoria, ACT and NSW were “experiencing stock flow limitations on some lines, impacting product availability of ambient, chilled and freezer lines for customers”.

“Since the start of the industrial action, Australian food sales have been negatively impacted by approximately $50m to date,” it said.

Australian Industry Group chief executive Innes Willox accused the union of holding families to ransom.

“This is a highly cynical and irresponsible dispute orchestrated to cause maximum damage and disruption at the worst possible time,” he said.

“The dispute is a sad reminder for Australians of the self-interested industrial chaos unions used to visit on Australians in the 1970s.”

Supermarket shelves are looking empty as the indefinite industrial action in four distribution centres takes its toll. Picture: Facebook

The union is pushing for Woolworths Group’s supply chain arm, Primary Connect, to scrap its Coaching and Productivity Framework, saying it used engineered standards to discipline or even fire people for not meeting company-stipulated speeds of working.

While workers at the four centres are pursuing “cost-of-living wage increases” ranging from 10 per cent to 12.5 per cent annually, UWU national secretary Tim Kennedy has signalled they were prepared to consider smaller pay rises provided they were above the inflation rate.

Mr Kennedy said: “In terms of shortages on shelves and Woolworths’ statements about the impact of the strike, we have consistently said that Woolworths is in a position to end this strike right now by agreeing to a reasonable outcome with workers – and they should do so today.

“Business groups may well come out and support the dangerous, inhumane and unsafe productivity framework but you can bet they are not being marked out of 100 in real time every time they perform a task.”