Woolworths has reopened its four Distribution Centres (DCs) after finalising new enterprise agreements following weeks of industrial action.
The industrial action, which lasted 17 days, significantly disrupted store service levels in Woolworths supermarkets across Victoria, the ACT, and parts of NSW. The company estimates Australian Food sales were negatively impacted by $140 million as of 8 December, with $90 million of that occurring in the past week.
Additionally, Woolworths anticipates a direct one-off negative impact on Australian Food EBIT of approximately $50-60 million due to lost sales, elevated stock loss, and contingency costs.
The agreements, endorsed by the United Workers Union and the Shop, Distributive and Allied Employees Association (SDA), secure wage increases of approximately 11 per cent over three years for team members.
Amanda Bardwell, CEO of Woolworths Group, said they are pleased to have endorsed offers and a competitive wage for their team at the four DCs subject to industrial action over recent weeks.
“With just over two weeks until Christmas, we are now moving products out of the DCs and onto supermarket shelves as quickly as possible for our customers. We are fully focused on restoring stock levels and getting products to stores where they are needed most, with stock levels to gradually improve as we seek to provide customers with a great shopping experience this Christmas.”
Bardwell also extended an apology to customers for the disruption.
“We would once again like to apologise to our customers for this disruption and thank them for their support. We know it has been frustrating shopping in our stores and online in recent weeks in Victoria, the ACT, and parts of NSW. I would like to sincerely thank them for their understanding and patience
While operations at the DCs have resumed, Woolworths noted that the time required to rebuild stock levels at both the DCs and stores will result in continued sales and earnings impacts for Australian Food in the second quarter.
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