Supermarket giant Woolworths says strike action is hitting its bottom line to the tune of $50 million, asking the Fair Work Commission for a circuit-breaker to ban warehouse workers from blocking its distribution centres.
United Workers Union (UWU) members are blocking all entrances to a distribution centre in suburban Melbourne and three other sites over better conditions and pay, leaving some its shelves bare.
Woolworths apologised to customers for the supply disruptions, which it said had cost $50 million in lost food sales as of December 2, in a trading update.
Woolworths said the union was seeking pay increases of more than 25 per cent over three years, at a time when the company was actively working to keep food and groceries affordable for customers.
Woolworths Group filed an urgent application to circumvent the strike action with the Fair Work Commission on Tuesday.
“The application comes after the UWU refused to give any assurance of safe passage for team members seeking to return to work at our Melbourne South Regional Distribution Centre (MSRDC) yesterday and this morning,” Woolworths said in a statement.
The application to Fair Work alleges a breach of the Good Faith Bargaining requirements in the Fair Work Act.
The matter has not yet been listed for hearing.
Woolworths says the majority of staff at the Dandenong South site are not members of the union and want to return to work and get paid.
The supermarket giant confirmed it would again try to reopen the distribution centre again on Tuesday but would follow advice from Victoria Police on whether it was safe.
The union is also demanding no enforceable performance standards, which Woolworths said would would preclude its ability to manage productivity.
“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,” Woolworths Group chief executive Amanda Bardwell said.
The strike action has left supermarket shelves across Victoria stripped, with scenes akin to the COVID-19 pandemic.
One store, on Collingwood’s Smith St, had most of its toilet paper aisle emptied along with large portions of the bread and fridge sections.
Those ordering grocery deliveries are also warned to allow substitutions to ensure they get the products they want.
The decision to go to Fair Work followed the company and union returning to the negotiating table on Monday.
“Woolworths warehouse workers are still talking to Woolworths about resolving the current strike,” UWU national secretary Tim Kennedy said.
Warehouse workers had been engaged in “good faith negotiations” for almost seven months prior to the action, he said.
“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.”
Workers say they are protesting against “unrealistic performance expectations” which they say led to frequent injuries and are demanding better wages, as well as an agreement that workers at different sites be paid the same amount.
It’s believed the strike is yet to affect Victorian farmers, whose produce normally hits supermarket closer to Christmas – but items such as nappies, toilet paper and drinks have been affected.
