Australian (ASX) Stock Market Forum

WOW - Woolworths Group

“This is a highly cynical and irresponsible dispute orchestrated to cause maximum damage and disruption at the worst possible time,” he said.
“The dispute is a sad reminder for Australians of the self-interested industrial chaos unions used to visit on Australians in the 1970s.”

WOW management may be finally wakening up to the fact that pandering to unions and greenies always costs your bottom line.

Woolworths makes Fair Work bid to bust picket costing $50m

Woolworths is urgently seeking Fair Work Commission orders to clear a picket outside a key distribution centre as the supermarket giant said the 12-day strike by the United Workers Union has cost the company an estimated $50 million in lost food sales.

Woolworths had originally insisted it had adequate contingency plans to cope with the industrial action but its shelves have become increasingly bare as warehouse workers approach almost two weeks of indefinite strike action.

The company announced the FWC application after failing to reopen its Melbourne South Regional Distribution Centre on Monday.

UWU members have blocked the site entry points with cars and protesters, with the company blaming the union for creating an unsafe environment for employees.

Woolworths said it was seeking FWC orders to prevent the UWU from blocking access to the Melbourne South Regional Distribution Centre and three other sites. It alleges the union has beached the good faith bargaining requirements in the Fair Work Act.

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Woolworths workers at Dandenong South. Picture: NewsWire/ David Crosling

In a statement to the Australian Stock Exchange, the company said some Woolworths supermarkets in Victoria, ACT and NSW were “experiencing stock flow limitations on some lines, impacting product availability of ambient, chilled and freezer lines for customers”.

“Since the start of the industrial action, Australian food sales have been negatively impacted by approximately $50 million to date,” it said.

Australian Industry Group chief executive Innes Willox accused the union of holding families to ransom.

“This is a highly cynical and irresponsible dispute orchestrated to cause maximum damage and disruption at the worst possible time,” he said.

“The dispute is a sad reminder for Australians of the self-interested industrial chaos unions used to visit on Australians in the 1970s.”

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Supermarket shelves are looking empty as the indefinite industrial action in four distribution centres takes its toll. Picture: Facebook

The union is pushing for Woolworths Group’s supply chain arm, Primary Connect, to scrap its Coaching and Productivity Framework, saying it used engineered standards to discipline or even fire people for not meeting company-stipulated speeds of working.

While workers at the four centres are pursuing “cost-of-living wage increases” ranging from 10 per cent to 12.5 per cent annually, UWU national secretary Tim Kennedy has signalled they were prepared to consider smaller pay rises provided they were above the inflation rate.

Mr Kennedy said on Tuesday that negotiations were continuing.

“In terms of shortages on shelves and Woolworths’ statements about the impact of the strike, we have consistently said that Woolworths is in a position to end this strike right now by agreeing to a reasonable outcome with workers – and they should do so today,” he said.

“Business groups may well come out and support the dangerous, inhumane and unsafe productivity framework but you can bet they are not being marked out of 100 in real time every time they perform a task.”

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“This is a highly cynical and irresponsible dispute orchestrated to cause maximum damage and disruption at the worst possible time,” he said.
“The dispute is a sad reminder for Australians of the self-interested industrial chaos unions used to visit on Australians in the 1970s.”

WOW management may be finally wakening up to the fact that pandering to unions and greenies always costs your bottom line.


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when i worked at WOW ( in 1972 ) it turned out management and the unions worked hand in glove

now MAYBE the unions have finally found a back-bone ( even after the replacement union morphed into a jelly-fish )
OR this is just theater and a distraction for other things going wrong in upper management/company performance , blaming workers/unions for failures elsewhere

and BTW it was the WORKERS ( our workplace ) that went on strike AGAINST our union , and found widespread support across the state in multiple retail corporations at worker level , ultimately forcing them completely out of the state ( not just Woolworths )
 
SP up 1 % to $ 30.24 on fairly good news on the strike front .
 

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One of my picks for the 2025 trading competition.

At this stage my rationale is simply that it's an underlying sound business in what I expect to be an at least somewhat turbulent year.

Plus it's somewhat beaten up at present, having had issues with a strike and so on, currently trading at a price about equal to the pandemic crash in 2020 before the rebound meanwhile major rival COL has clearly performed better. From past observation that's cyclical, at any given point WOW or COL looks to be killing the other then it reverses, so I'm hoping for that scenario to repeat. :2twocents
 
Leadership update and organisational changes
● Annette Karantoni appointed Managing Director, Woolworths Retail
● Sally Copland to return to New Zealand as Managing Director, Woolworths NewZealand
● Metro, Greenstock and Woolworths Food Company Retail now part of Woolworths Retail

Woolworths Group today announces changes to its Food leadership and organisational structure to allow a greater focus on the areas that have the most impact for customers.Annette Karantoni has been appointed to the role of Managing Director, Woolworths Retail,reporting to Amanda Bardwell, Woolworths Group CEO and Managing Director, Australian Food.
Woolworths Retail brings together key components of the Australian retail business including Woolworths Supermarkets, Metro, Greenstock (red meat supply business) and Woolworths Food Company Retail (Own Brand).
Amanda Bardwell said: “Annette has been leading Primary Connect, the Group’s supply chain business, for over three years.
This has included oversight of the NSW supply chain transformation, the Group’s biggest strategic investment to date.
“Prior to leading Primary Connect, Annette spent over 20 years working across Woolworths Group and has held senior leadership roles in Australian Food in eCommerce, Buying,Marketing and Replenishment.“
Our Woolworths Retail business is the cornerstone of our Group and critical to our success.
Getting it right for our customers starts with our team and we are taking the opportunity to simplify the way we work to create the biggest impact for our customers.
With Metro,Greenstock and Woolworths Food Company Retail moving into Woolworths Retail under Annette’s leadership, we will be able to enhance the role our retail food stores and own brand play in meeting the needs of our customers.”
Jeanette Fenske, Director of Stores and Paul Harker, Chief Commercial Officer, who have been leading Woolworths Supermarkets on an interim basis will continue in their existing roles as part of Woolworths Retail’s leadership team, reporting to Annette Karantoni.
Amanda Bardwell added: “I would like to thank Jeanette and Paul and the broader leadership team for their important contribution over the last few months.”
In New Zealand, Sally Copland has been appointed Managing Director, Woolworths New Zealand following Spencer Sonn’s decision to return to South Africa.
Sally has been with Woolworths Group for over 18 years and will return to Woolworths New Zealand having previously held a number of senior positions including interim Managing Director, as well as leading eCommerce, Brand and CountdownX teams.Amanda Bardwell continued: “Sally’s experience in Australia and New Zealand across many parts of our food businesses makes her ideally suited to lead Woolworths New Zealand in its continuing transformation.
I would also like to thank Spencer for his leadership in a very challenging environment and wish him all the best in his future endeavours.”

i hold WOW 'free-carried' ( something over 100 shares compared to the inheritance of well over 1000 shares mainly the accumulated DRP shares from the holding )

i will watch and see but this company has been a cluster of missteps since Corbett left
 
my current WOW holding equates to less than HALF the DRP shares earned since September 2011 when i inherited a fair few of them .

am in NO hurry to throw more cash at WOW , MAYBE if it drops below $20 , but then COL ( which came courtesy of the WES spin-off ) would have strong claims for that cash as well ( if the sector dropped that much ( as compared to WOW alone dipping heavily )

BTW i flogged off the EDV as it showed signs of the same path as WOW in recent years

having sold about half the 'freebie' COL shares WOW and COL are about even ( by number of shares held ) in my portfolio it was WES that i increased the holding and it has more than doubled in share price since divesting COL in 2018

but time will tell ... but gee i really miss Corbett running the company
 
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