Woolworths reaches deal with workers, expects $140 million impact on food sales

Woolworths has reopened its four distribution centres after reaching a deal with the striking workers but expects about a $140 million negative impact on food sales due to the picketing, which began last November 21.

Woolworths said that the United Workers Union (UWU) has endorsed the new individual enterprise agreements comprised of wage increases of a cumulative 11 per cent over three years.

The supermarket chain said that the agreements will provide team members competitive pay rates which are also sustainable for the business.

“With just over two weeks until Christmas, we are now moving products out of the DCs and onto supermarket shelves as quickly as possible for our customers,” said Amanda Bardwell, Woolworths Group CEO.

“We are fully focused on restoring stock levels and getting products to stores where they are needed most, with stock levels to gradually improve as we seek to provide customers with a great shopping experience this Christmas.”

Bardwell also apologised to customers for the disruption, which affected food supplies in some of its stores in NSW, Victoria, and the ACT.

Woolworths estimates a direct one-off negative impact of $50 million to $60 million on its Australian food earnings before interest and taxes (EBIT) from the disruption.

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