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Introduction
As the holiday season approaches, Woolworths could see disruptions in supply across its stores due to a strike by warehouse workers concerned about pay and working conditions.
Strike Details
More than 1,500 members of the United Workers Union (UWU) have commenced indefinite industrial action at four Woolworths distribution centers in Victoria and New South Wales. The workers are demanding annual wage increases of 10% to 12.5%, arguing that while the company’s profits rise, their wages have not kept pace.
Impact on Supply Chain
The strike threatens significant disruption, as the centers involved distribute approximately 5 million cartons weekly, including essential items like milk, butter, toilet paper, cereals, and toiletries. Alcohol supplies could also suffer, impacting BWS and Dan Murphy’s outlets, which receive their products from one of the affected warehouses.
Company’s Response and Contingency Plans
Woolworths Group’s supply chain arm, Primary Connect, has activated contingency plans to mitigate the impact on consumers. These measures include increasing stock levels at potentially affected stores and leveraging their broader network of 20 distribution centers and 8,000 team members to maintain regular deliveries.