Update on the Woolworths Group Supply Chain

Woolworths Group (ASX: WOW) has updated its supply chain after endorsing new enterprise agreements at four Distribution Centers in Victoria and NSW. The agreements, which follow an extended period of industrial action, were supported by the United Workers Union on 07 December, with the SDA previously endorsing the Melbourne South Regional DC.

The new agreements ensure competitive wage increases of around 11% over three years and address team member concerns about performance metrics. While the strikes significantly impacted Woolworths Supermarkets, with an estimated AU$140 million lost in Australian Food sales (up to 08 December), the re-opening of the DCs is expected to restore operations. The dispute’s direct negative impact on Australian Food EBIT is estimated at AU$50-60 million.

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