Australian supermarket chain Woolworths has lodged an urgent application with the country’s Fair Work Commission amid ongoing strikes in distribution centres.
The retailer is seeking orders to prevent the United Workers Union (UWU) from obstructing access to its Melbourne South Regional Distribution Centre (MSRDC) and three other sites in Victoria and New South Wales.
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The move came as strike action, which began on 21 November 2024, continued for a 12th day.
The application alleges that the UWU has breached the good faith bargaining requirements under the Fair Work Act. A hearing date has not yet been set.
Woolworths’ decision follows the union’s refusal to ensure safe passage for employees wishing to return to work at the Melbourne South Regional Distribution Centre, where most workers are not UWU members.
A majority of the team at the distribution centre had expressed a desire to resume work, aiming to restore the supply of essential items such as nappies and toilet paper to stores in Victoria.
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By GlobalDataBut Woolworths reports that the entrance was blocked by cars and protesters, creating an unsafe environment for those attempting to work.
Woolworths has said that it will try to operate the distribution centre, adhering to Victorian Police advice on team safety.
The company has been negotiating enterprise agreements with UWU for more than four months without resolution.
The union is requesting pay raises at these locations above 25% over three years, well above the current rate of inflation.
Despite each site negotiating its own agreement, Woolworths has made several competitive offers with pay rates significantly above the storage services award.
To mitigate customer impact, contingency plans have been implemented, including increased store inventory and alternative distribution methods.
The industrial action has already affected Australian food sales by $50m up to 2 December.
Woolworths anticipates further impacts on sales and is uncertain of the full financial consequences. These effects were not included in the first half of the fiscal year 2025 earnings forecast provided in October.
Woolworths Group CEO Amanda Bardwell said: “We sincerely apologise to all of our customers for the inconvenience caused by the inconsistency of supply across some product lines in some of our stores in Victoria, southern NSW and ACT. We are working hard to try and improve the situation and would like to thank our customers for their understanding and for treating our teams with respect.”
