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Woolworths Faces $50 Million Sales Loss Amid Ongoing Industrial Dispute

Woolworths Faces $50 Million Sales Loss Amid Ongoing Industrial Dispute

Woolworths, Australia’s largest supermarket chain, has reported a $50 million loss in food sales due to prolonged industrial action. Empty shelves are now a common sight in stores across Victoria, New South Wales, and the ACT as the United Workers Union (UWU) continues its strike over pay and working conditions.

Fair Work Application Lodged Amid Dispute

The industrial action has prompted Woolworths to file an urgent application with the Fair Work Commission. The supermarket giant is seeking orders to stop UWU members from blocking access to its major distribution centres in Victoria and New South Wales.

“The application comes after the UWU refused to give any assurance of safe passage for team members,” Woolworths said.

Pickets at Woolworths’ Dandenong South distribution centre in Melbourne have caused significant supply disruptions. The site is responsible for 42 per cent of stock that has failed to reach stores.

Strikes Lead to Empty Shelves and Product Shortages

Shoppers have encountered shortages of essential products, including nappies, bread, toilet paper, and frozen goods. Woolworths said the strikes have impacted four of its primary distribution centres – three in Victoria and one in New South Wales – and a partner site.

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Union Calls for Safety and Fair Pay

The UWU has demanded safer working conditions and pay increases to address rising living costs. Tim Kennedy, the union’s national secretary, highlighted concerns over Woolworths’ productivity targets.

“The framework requires warehouse staff to achieve 100 per cent performance targets, which is dangerous, inhumane, and unsafe,” Mr Kennedy said.

The union insists Woolworths can resolve the strike by agreeing to reasonable terms.

“We have consistently said Woolworths is in a position to end this strike right now,” Mr Kennedy stated.

Negotiations Continue Amid Picket Line Pressure

Negotiations between Woolworths and the UWU resumed on Tuesday, with reports of progress from both sides. About 200 people picketed at the Dandenong South site earlier this week, followed by 80 workers on Tuesday.

Woolworths has argued that the picket lines create unsafe environments for employees who wish to return to work.

“There was no need for Monday’s disruption by the UWU,” a Woolworths spokesperson said.

Impact on Christmas Shopping and Productivity

The Business Council of Australia (BCA) has criticised the strike, calling the union’s actions “reckless” and harmful to productivity.

“The UWU’s reckless behaviour is already impacting the supply chain,” said BCA boss Bran Black.

The council fears ongoing disruptions could leave shelves empty during the Christmas shopping season.

Woolworths Warns of Price Increases

Woolworths warned that the industrial action could lead to higher grocery prices. The company accused the union of demanding pay increases exceeding 25 per cent over three years.

“This is materially above inflation,” a Woolworths spokesperson said.

Woolworths is also under scrutiny following allegations by the ACCC of misleading price hikes. The watchdog claims Woolworths raised prices by 15 per cent before advertising them as discounted under its “Prices Dropped” promotion.

Government Pushes for Fairer Practices

Australian Treasurer Jim Chalmers stressed the government’s commitment to protecting families from supermarket misconduct.

“Our new mandatory code has strong penalties that tell the supermarkets we’re serious about getting a fair go,” he said.

Assistant Minister Andrew Leigh echoed these sentiments, saying stricter measures would benefit shoppers, farmers, and suppliers.

Union Remains Resolute

Despite financial strain, workers on the picket line have vowed to continue their action.

“We haven’t been paid for 12 days, but we’re getting by,” a unionist said.

Woolworths and the UWU are expected to continue negotiations as the dispute enters its twelfth day. Both parties face mounting pressure to resolve the issue before the busy holiday season.

This industrial conflict underscores broader concerns about workplace safety, fair pay, and supply chain stability in Australia’s grocery sector.

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