The Motley Fool

Woolworths taken to Fair Work Commission over redundancies

The Woolworths Group Ltd (ASX: WOW) share price will be one to watch this morning after Australia’s largest retail workers union announced that it would be taking the company to the Fair Work Commission over recent changes to the way it operates its supermarkets.

What was announced?

On Tuesday afternoon the Shop Distributive and Allied Employees Association announced on its Facebook page that it was taking Woolworths to the Fair Work Commission over its recently revealed supermarket restructure.

For those that missed it, this restructure includes the creation of two new departments called “fresh convenience” and “fresh service”.

This has been done in a bid to steal market share from competitors such as Coles Group Ltd (ASX: COL) and Metcash Limited (ASX: MTS). The idea is that Woolworths staff will have better knowledge to be able to advise customers of products and how to use or cook them.

The plan will result in some role changes and the company revealed to News Corp media that those who aren’t able or willing to be retrained or placed elsewhere will be offered a redundancy.

This hasn’t gone down well with the Shop Distributive and Allied Employees Association.

Yesterday it said: “The SDA is taking Woolworths to the Fair Work Commission against the restructure. The SDA has serious concerns that the Company failed to properly consult workers and the union and that many of the planned redundancies are not genuine.”

However, a company spokesperson told Yahoo Finance that Woolworths has been proactive in consulting with the union on structural changes.

It added: “Our immediate focus is identifying as many redeployment opportunities as possible for impacted team members across our business. Under the new model, we’re creating more customer facing leadership roles to help deliver better service to our customers and to meet their changing shopping needs. Importantly, the changes will not lead to a net reduction in the overall number of team members we employ in our stores.”

Not sure about Woolies? Then check out these dirt cheap shares that have been rated as buys.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

Stock #1 is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Stock #2 is another high-growth business trading near a 52-week low all while offering a 4.7% grossed-up yield...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now