woolworth group (ASX: Amazing) Industrial action continues into its 12th day at four distribution centers, three in Victoria and one in New South Wales, causing significant disruption to the supply chain.

The strike, initiated by the United Workers’ Union (UWU), stems from unresolved enterprise agreement negotiations, with UWU demanding wage increases of more than 25% over three years and the removal of mandatory productivity standards. . Woolworths said it negotiated in good faith over four months and offered a salary that was approximately 40% above the winning bid. The Shops, Distribution and Allied Employees Association (SDA) supported an agreement at one of the affected sites, but reopening efforts have been hampered by UWU picketing.

The ongoing disruption has resulted in stock issues impacting the availability of products in Woolworths stores across Victoria, southern New South Wales and the ACT. To date, Woolworths estimates a $50 million negative impact on Australian food sales, with further losses expected as the industrial action continues. The overall financial impact remains unclear, especially as the company is working to rebuild its inventory ahead of the Christmas shopping period.

CEO Amanda Bardwell apologized to customers for the inconvenience and said, “We are working to rectify the situation and would like to thank our customers for their understanding and respect for our team.”

The stock is trading 0.46% lower at $30.18.