Woolworths Faces AU$50 million Sales Hit Amid Ongoing Strike

Woolworths Group Limited (ASX: WOW) has reported a $50 million loss in food sales due to an unresolved industrial strike over pay at four distribution centers in Victoria and New South Wales. The strike, which began on November 21, involves workers demanding a pay increase exceeding 25% over three years. Woolworths has been negotiating with the United Workers Union for over four months but has yet to reach a resolution.

The company stated the financial impact will depend on the strike's duration and the time required to replenish inventory ahead of the critical Christmas trading season. This one-off disruption was not included in the Australian food earnings forecast for H1 FY25 provided in October. At the time of writing, Woolworths continues efforts to mitigate supply chain disruptions while negotiating with the union to resolve the dispute.

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