December 9th 2024.
According to Woolworths, the recent strike among workers at four distribution centres in Victoria and New South Wales has resulted in a significant cost of $140 million. This comes after more than 1500 workers went on strike for a period of 17 days, until an agreement was reached between the United Workers Union and the supermarket giant on Saturday.
In a statement, Woolworths stated that the impact of this strike has been felt in Australian Food sales, with a negative impact of approximately $140 million since the previous update on Tuesday, December 3rd. The direct impact on Australian Food EBIT is estimated to be around $50 - $60 million, which includes the loss of sales, additional transport and supply chain contingency costs, and increased levels of stock loss.
Looking ahead, Woolworths is anticipating further losses heading into 2025, as the rebuilding of stock levels before the busy Christmas shopping period will take time and resources. During the strike, shelves were left empty in some stores as the distribution centres were unable to send out goods.
Woolworths Group CEO Amanda Bardwell stated that with just over two weeks until Christmas, they are working tirelessly to restock shelves and get products to stores as quickly as possible for their customers. She assured that they are fully focused on improving stock levels and providing a great shopping experience for customers this holiday season.
Under the new agreement, workers will receive an 11% wage increase over the course of three years. Additionally, concerns over performance metrics have also been addressed, according to Woolworths. To stay updated on all the latest news, sport, politics, and weather, you can download the 9News app available on the Apple App Store and Google Play. Stay informed and receive notifications straight to your smartphone.
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