Woolies nabs union deal to end warehouse strike

The race is on to restock shelves after Woolworths struck a deal to end a warehouse workers' strike. (Holly Hales/AAP PHOTOS)

Major Woolworths distribution centres are set to reopen after the supermarket giant struck a deal with its workers' union, ending a long-running warehouse worker strike. 

A group of picketers blocked access to the Dandenong centre in Melbourne’s southeast earlier on Saturday but operations could resume in a matter of hours after the company and the union struck a deal.

The United Workers Union denied the picketers were affiliated with the union and later confirmed workers across three warehouses in Victoria and one in NSW had voted to accept a revised offer after striking for 17 days.

The Fair Work Commission
The Fair Work Commission ruled on Friday that the picket lines were unlawful.

The union said more than 1500 workers and their families had been forgoing pay while on strike to improve wages "to be treated as human beings, not robots".

It also heavily criticised a “Woolworths framework”, an algorithmic worker performance management program that the union said monitored pick rates and put employees at risk.

"The new enterprise agreement won by workers breaks the link between measuring the speed of their work and automatic punishment if they fall behind - a system that effectively attempted to treat Woolworths warehouse workers like robots," a spokesperson said.

After months of negotiations, the union said it had secured wage increases above the rate of inflation and a new clause would be added to workplace agreements “that ensures that the workers will not be disciplined for the speed that they can work at”. 

Workers have been told to stop blocking Woolworths distribution centres.

“Today, warehouse workers at Woolworths have saved Christmas,” union secretary Tim Kennedy said in a statement on Saturday. 

“But more importantly, they have challenged one of the most significant threats to worker safety and wellbeing as we enter a new AI-surveillance era of work ... and they have won.”

Woolworths said its four warehouses would be back to full capacity as soon as possible.

“We are pleased to have endorsed offers for new terms and conditions and a competitive wage for our team at our four distribution centres that have been subject to indefinite industrial action over recent weeks,” chief executive Amanda Bardwell said.

Woolies strikers
Strike action over the pay dispute left Woolworths shelves bare across Victoria, NSW and the ACT.

The supermarket giant said it was focused on getting its products out of the distribution centres and restocking empty shelves.

“Turning back ‘on’ such a large part of our supply chain will mean it will take some time for our stores to look their best and we’ll be ramping up as much as we can to get products to the stores where they’re needed most," Ms Bardwell said.

More than two weeks of industrial action has emptied thousands of supermarket and bottle shop shelves in Victoria, NSW and the ACT and cost the supermarket chain at least $50 million.

On Friday, Woolworths celebrated a court victory, with the Fair Work Commission finding the union had been unfairly negotiating with the supermarket giant, describing protest picket lines outside its distribution hubs as "unlawful".

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store