CANBERA (dpa-AFX) - Woolworths Group Limited (WOW.AX) said it has reopened its four distribution centres after reaching an agreement with striking workers. Despite the resolution, the company expects a negative impact of approximately A$140 million on food sales due to the strike.
The endorsed deals come after 17 days of indefinite strike action impacting store service levels in Woolworths Supermarkets across Victoria, ACT and parts of NSW.
The company said its individual enterprise agreement offers were endorsed by the United Workers Union on 7th December. Melbourne South Regional DC (MSRDC) had previously been endorsed by the SDA. The new agreements provide team members with wage increases over three years of approximately 11% in total, which provide team members with competitive rates of pay that are also sustainable for the business, with the individual increases varying by site and year.
Australian Food sales have been negatively impacted by approximately A$140 million in total (up to 8 December). The estimated direct one-off negative impact of this dispute to date on Australian Food EBIT is approximately A$50 million - A$60 million, reflecting the impact of lost sales, additional transport and supply chain contingency costs and elevated levels of stock loss.
While all sites are now operational, Woolworths Group anticipates there will be further sales and earnings impacts for Australian Food in the second quarter, due to the time and effort required to rebuild stock levels at both the DCs and stores ahead of the busy Christmas trading period.
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