As the strike continues, Woolworths customers are already feeling the pinch. The shortages are most notable in staple items such as toilet paper, cereal, frozen goods, meat and dairy.
The lead-up to Christmas is a critical period for supermarkets. November and December typically account for 22 per cent of their annual sales, according to recent research by MST Marquee.
Shortages have been reported at Woolworths stores in Victoria, NSW and the ACT.Credit: April Lombardo
A Woolworths spokesperson said negotiations with the union were continuing in a bid to rectify store shortages. “We sincerely apologise for the inconvenience and would like to thank our customers for their understanding and for treating our teams with respect,” the spokesperson said.
In an effort to ease the crisis, Woolworths announced the reopening of its Melbourne South Regional Distribution Centre in Dandenong South on Monday. But after hundreds of protesters formed a picket line blocking entrances to the centre, it is unclear whether any staff returned to work.
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The company said Dandenong South was the most significant site currently subject to indefinite industrial action across four distribution centres and that resuming operations would improve the availability of food and essential grocery items in Victoria.
Woolworths said that after contacting almost three-quarters of the team at the site, the majority indicated they wanted to return to work and be paid in the lead-up to Christmas.
Alcohol supply has also been disrupted in Victoria due to strike action at the Woolworths site in Laverton, which delivers to BWS and Dan Murphy’s outlets. It is also the direct supplier to one of Australia’s largest pub operators, ALH Group.
In a statement issued on Monday, Woolworths said there was “no need” for the disruption at the Dandenong South site. “As long as they continue to block access to our site, our customers will continue to face shortages on shelves in Victoria,” a Woolworths spokesperson said.
However, Kennedy said Woolworths shelves could be replenished “very quickly” if the supermarket giant addressed staff concerns.
”Woolworths can fix this by simply sitting down and listening to what the workers’ legitimate concerns are and meeting them,” he said.
Why is the dispute affecting Victoria more than NSW?
While workers in NSW are striking at one distribution centre in Erskine Park, the three Victorian sites – Dandenong South, Laverton, and Barnawartha – are bearing the brunt of the industrial action.
Security guards outside the Woolworths Melbourne South Regional Distribution Centre on Monday. Credit: Luis Enrique Ascui
What does it mean for Woolworths?
The strike and the supply issues come at a tough time for Woolworths’ image. The company is also embroiled in a legal battle with the Australian Competition and Consumer Commission over discount practices that are allegedly misleading. Woolworths and Coles are also facing class action lawsuits over alleged deceptive pricing.
With the holiday season approaching, Woolworths is under intense pressure to resolve these issues quickly. Woolworths on Monday said the Shop, Distributive and Allied Employees’ Association had endorsed the company’s offer presented last week.
The supermarket said that despite the endorsement, the UWU is pushing for an offer that is “materially above inflation, at a time when Woolworths is actively working to keep food and groceries affordable for our customers who are facing ongoing cost of living pressures”.
Kennedy said Woolworths had the capacity to offer affordable prices to shoppers, as well as fair wages to workers all while continuing to make a profit.
”This is a super profitable company. It’s a matter of whether Woolworths want to rebuild their trust with the Australian public as both shoppers and as workers,” he said.
Kennedy said negotiations between the union and the supermarket giant were under way, with the aim of reaching an agreement as quickly as possible.
For now, the strain on supply chains is likely to continue, as Woolworths works to get its operations back on track before the holiday rush hits with full force.
With Cassandra Morgan
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