Industrial action at Woolworths reminder that reconciliation 'not always easy'
Woolworths says industrial action cost the business almost $250 million in sales over the first half of the year, according to reports — and an industrial relations expert says getting back on track won’t be easy.
“Reintegrating employees back into the workplace after a strike can be delicate. It's not always easy, as it involves addressing emotional, logistical, and organizational challenges,” said Greg Bamber, Professor at Monash University’s Business School.
“Managers should appreciate that for most employees, going on strike is a rare and last resort. They also need to demonstrate mutual respect, fairness and transparency to foster a lasting resolution and improved workplace culture.”
The Woolsworths action – which took place over 17 days in November 2024 – saw workers at distribution centres in Victoria and New South Wales walking out in a dispute about pay.
The supermarket giant blames a 14.2% decrease in earnings before interest and tax (EBIT) at the beginning of 2025 on the industrial action - as well as factors such as customer behaviour.
“Reflecting the challenging environment, Group VOC NPS of 44 was down six points on the prior year and down two points on Q1,” The Woolworths Group’s half-year results state.
The priority for businesses after strike action has ended is getting things back to normal within the workforce and making sure organisations can operate at a regular capacity.
“Poor reintegration can lead to lingering resentment and hostility among employees, which can escalate into conflicts and further disruption,” Bamber said.
“Providing support such as counselling, mediation, or conflict resolution services can help address any lingering tensions or grievances – and implementing a phased return plan can ease the transition.”
In short, communication is key as if employees don’t feel like their concerns are being addressed, it could lead to a higher turnover rate and loss of talent, he said.
The reintegration of staff can also offer insights into a business’ internal policies and allows them to be retuned and redefined, Bamber said.
“Often a good way to proceed is to establish a joint working group that includes employees and, if appropriate, their union reps, which is empowered to recommend action and change. You can’t just ignore issues and think they’ll go away.”
A recent example is the United Auto Workers (UAW) strike against the "Big Three" automakers—Ford, General Motors, and Stellantis—in the U.S. After a six-week strike in 2023, the companies agreed to significant wage increases and improved benefits.
Following the action, some automakers adjusted their policies, including stricter absenteeism rules and operational changes, such as shifts in job assignments and plant closures, to offset labour costs.
Woolworths workers have since accepted a new pay offer, according to reports.
