9 Aug 2015

Woolies Are Bullies, And You Can Help Do Something About It

By Gary Maas

The National Union of Workers is launching a major campaign targeting the retail giant. And member or not, you can get involved.

This week saw the beginning of a long campaign to save the jobs of hundreds of workers at Woolworths’ Distribution Centre in Hume, in the northern suburbs of Melbourne.

Woolworths recently announced its plan to shut down its shed in the north and relocate operations to the other side of Melbourne, in Dandenong.

The National Union of Workers joined, on a cold August night, with the community to hold a public meeting about a plan for secure jobs in the north, an area of Melbourne plagued with unemployment levels of up to 26.4 per cent (in Broadmeadows, where our meeting was held) and which has experienced industrial decimation recently, with the closure of many factories including Ford.

One of our delegates spoke, as did community worker Melanie Raymond from outreach organisation Youth Projects, and Federal Labor MPs Kelvin Thomson and Maria Vamvakinou.

I unfortunately cannot name our smart, passionate delegate because the company are aggressive in pursuing those who speak up for their rights.

This relationship of master and servant is becoming increasingly commonplace in corporate Australia and takes power away from ordinary people.

All of these community leaders stood with our workers and their families to unite against corporate greed and plan ways to protect jobs and create opportunities.

This meeting – the beginning of a campaign – was distinguished by the solidarity in the room between politicians, workers, families and local residents.

Woolworths is one of the country's largest retailers.  A publicly listed company with a rising share-price, it also employs some 200,000 people nationally. 

The company brought in a staggering $62 billion in revenue just in the last year.  It wields tremendous power with governments, with its clients and its customers. In short, Woolworths occupies a very privileged position in Australia. 

The closure of the Hume Woolworths Distribution Centre will impact directly upon 680 families in this area, not to mention all the support services and small business that will also be impacted by this devastation. 

Hume is in an area that has always worn the mantle of being disadvantaged ever since its rapid development post-second world war. This is an area that is still trying to come to terms with the closure of the car industry, and what this will mean for the community.

The loss of the additional jobs at Woolworths will cause further distress to workers and their families, and place additional pressures on the social infrastructure in the north.

The postcode of 3047 – Broadmeadows – is the most disadvantaged postcode in Melbourne. It has both the highest unemployment and youth unemployment rates for a metropolitan area in the state.

Woolworths has always had a warehouse in the north. First, the shed was in Brunswick but as time went on a move was made to Somerton. Then, 17 years ago more space was needed and the Distribution Centre was relocated to where it now is in Hume.

Woolworths has historically been an employer offering great opportunity to the communities in Melbourne suburbs, with good secure jobs with decent conditions.

It is because of this record of commitment to the north that the NUW and the community are so surprised by the announced closure.

Is it just because the conditions are good and the union is strong? 

Our Hume DC members are real people with real lives. They’re not simply numbers on a page to be considered only as parts of a maths equation.

In making its decision to pack up and leave, Woolworths did not consult with any stakeholders. There was no respect for any worker, any community member. They timed their meetings with the Union, the Victorian Industry Minister's office, the workforce and the media all for the afternoon of June 9.

Most workers were informed of the decision by text message. There was not even a veneer that any Corporate Social Responsibility considerations were taken into account. This is not good enough.

This is a company whose corporate failings in the community are beginning to be known to us. In May this year Four Corners exposed slave like conditions in the fresh supply chain where 4th, 5th and 6th tier labour hire workers are being paid as little as $3.95.

Woolworths and their major competitors drive prices so low in the supply chain - again ignoring the consequences - that the workers at the end of the supply chain have no dignity in their lives.

At their Liquor DC in Laverton, Woolworths Management are introducing labour hire into their sheds, although there is a written agreement in place between the union and Woolworths stating that this cannot occur until subsequent re-negotiation of the agreement.

There is no respect even when this intent is formalised in writing.  In every sense of the phrase, Woolies are Bullies.

Governments give tremendous tax incentives to companies like Woolworths to provide secure jobs. It is those tax dollars that provide us with the essential transport, education, support services and social infrastructure that we all need to progress in life. 

Big companies have a responsibility to the communities that they have become a part of. And this goes the same for all big business, not just Woolworths.

The National Union of Workers understands that we are just one small part of the wider Hume community, and we're honoured to be a part of it.

This community has always been so diverse and yet so supportive of one another. But you can't tackle a problem this big by yourself.

This campaign is about finding the links that join us, to hold companies like Woolworths to account. This campaign is about organising ourselves and formulating plans so that the economy also works for us - and not the other way around. 

In short this campaign is for respect and dignity through secure employment in Melbourne's north, and we need you on board.

To be a part of our campaign, join our community membership program by clicking here.

* Gary Maas is the secretary of the Victorian branch of the National Union of Workers.

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This user is a New Matilda supporter. boganbludging
Posted Sunday, August 9, 2015 - 08:19

Looks like the CEO, Grant O'Brien, whos worked for the company for nearly 30 years, has been axed due to Woolies downturn, which is mainly due to an obvious loss in marker share, yes no loyalty there.
Woolies CEO Axed
'The company is on a $500 million cost-cutting drive and expects to pay out $40-$50 million in redundancies this financial year.'

We need the Woolies/Coles duopoly smashed, but not at the expense of workers.

This user is a New Matilda supporter. musikki
Posted Sunday, August 9, 2015 - 08:37

There is something wrong here, but no-one has a clue what to do about it. The point was made very  well in 'Supercapitalism' by Robert Reich that these days we do very well as investors and as consumers, but not so well as citizens. CEO's are at the mercy of investors, mostly super funds, which is us, and employees are at the mercy of CEO's and the determination of us as consumers to get everything at the lowest price. Result: lots of cheap goods, wages share declining and less stability in our lives.

I feel for those about to lose their jobs.

This user is a New Matilda supporter. Rychard
Posted Sunday, August 9, 2015 - 19:40

Woolies are underwater to the tune of about $2 billion with their Masters stores, just $500 million shy of their approx annual profit. This can not be helping the job prospects in Hume.

This user is a New Matilda supporter. stephenp
Posted Monday, August 10, 2015 - 09:17

While the loss of jobs is terrible, the author needs to be careful in making unsubstantiated statements and railing against corporate greed. Woolworths is struggling, its share price is falling not rising. Woolworths management has made some serious strategic errors. Further, the Woolworths/Coles duopoly is already broken with Aldi having some 16% of the market with its share increasing. The Coles/Woolworths competition has given Australians low priced high quality food. While all companies have the resposibility to treat people decently, they have to be sustainable. The Woolworths Board did just fired their CEO!

This user is a New Matilda supporter. boganbludging
Posted Monday, August 10, 2015 - 13:08

@stephenp

The Coles/Woolworths competition has given Australians low priced high quality food.

Well, looks likes there's obviously been a margin for better value for consumers, with other players able to compete.
Reminds of Ansett & Qantas and hifalutin service.

bigtreeman
Posted Tuesday, August 11, 2015 - 00:06

All the Australian governments knowing uses labour hire subcontractors to save money and abrogate their employment responsibilities. They've done it for decades, both Labour and Coalition. Corporations do it for profits while the workers join the race to the bottom. It's also an ugly power play by people at all levels of power and control over those under them who are the most powerless to avoid the damage.

Why do the most broken socieopaths rise toward the top ? So they have people to abuse !

I have just walked away from an industry which exibits the worst behaviour towards their employees. Not just one company but over and over, the same personality types playing the same games with peoples lives.

It's not one company, it's everywhere, unless you are fortunate to work for a good company. I have worked for fantastic companies in the past, but recently have encountered a string of nasty companies.

 

This user is a New Matilda supporter. boganbludging
Posted Tuesday, August 11, 2015 - 06:47

I have just walked away from an industry which exibits the worst behaviour towards their employees. Not just one company but over and over, the same personality types playing the same games with peoples lives.

Yes I see it in construction industry too, it's rife.
If you can get evidence of harassment on camera, on a phone and take it to industrial relations, could double up on getting paid and dob a bullying psycho boss, certain levels of harassment can mean jail time too.