Woolworths’ Melbourne South Regional Distribution Centre (MSRDC) has reopened after the company’s new enterprise agreement offers were endorsed by the United Workers Union (UWU) at four Distribution Centres across Victoria and NSW over the weekend.
The Shop, Distributive and Allied Employees’ Association (SDA) had endorsed the offer at MSRDC.
The Melbourne Liquor Distribution Centre, Wodonga Regional Distribution Centre and Erskine Park Distribution Centre are also expected to re-open soon and all four sites will be stood back up to full capacity as soon as possible.
All four sites have been subject to indefinite strike action since 21 November which has impacted supply of essential grocery products to Woolworths customers across Victoria, ACT and parts of NSW.
The impact is estimated to have negatively impacted sales by some $140 million with the industrial action of 1500 warehouse staff at the beginning of the crucial pre-Christmas trading period reducing sales and stock in store.
Woolworths confirmed its individual enterprise agreement offers guarantee team members a wage increase of close to 11 per cent over three years and address concerns over performance metrics.
The company estimates a one-off loss of $50 million to $60 million in its Australian food segment due to lost sales and higher stock losses.
“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,” said Amanda Bardwell, Woolworths Group CEO.
“With just over two weeks to go until Christmas, we’re now focused on getting products out of the Distribution Centres and restocking the empty shelves customers have experienced in the past fortnight.
“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.
“We would once again like to apologise to our customers. We know how frustrating it has been to shop in store and online with us in recent weeks in Victoria, the ACT and parts of NSW.”
Bardwell extended thanks to customers for their understanding and patience and the many teams across the Woolworths Group who have worked to minimise the disruption.
“In particular we thank our teams in unaffected distribution centres who have helped maintain levels of supply while the four sites were closed,” she said.
“We also thank our store teams, who are at the heart of our business and have done their very best for our customers in very difficult circumstances.”
