Woolworths Group (ASX:WOW) has reported significant disruptions to its supply chain as industrial action at four distribution centres—three in Victoria and one in New South Wales—continues into a 12th day.
The strikes, initiated by the United Workers Union (UWU), stem from unresolved enterprise agreement negotiations, with the UWU demanding pay increases exceeding 25% over three years and the removal of enforceable productivity standards. Woolworths stated that it has engaged in good faith negotiations for over four months, offering pay rates approximately 40% above the award. While the Shop, Distributive and Allied Employees’ Association (SDA) has endorsed an agreement at one affected site, reopening efforts have been hindered by UWU picketing.
The ongoing disruption has led to inventory challenges, impacting product availability in Woolworths stores across Victoria, southern NSW, and the ACT. To date, Woolworths estimates a $50m negative impact on Australian Food sales, with further losses anticipated as the industrial action continues. The full financial repercussions remain uncertain, particularly as the company works to rebuild inventory ahead of the Christmas trading period.
CEO Amanda Bardwell apologised to customers for the inconvenience, stating, “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.”
Shares are trading 0.46% lower at $30.18.
