Abstract
In early 2024, a Coaching and Productivity Framework aimed at increasing efficiency was introduced at Woolworths Group Limited (Woolworth’s) distribution centres in Australia. Based on engineered standards, staff were expected to perform at 100 per cent during their shift to a speed-related metric, commonly referred to as a pick-rate. A headset worn by warehouse employees told them where to go, what items to take from the shelves and pack, and how long this should take. If a worker did not meet the predefined 100 per cent standard, they were placed on a twelve-week coaching program. Primary Connect (the distribution arm of Woolworths) managed the distribution centres and helped move products across the country to support retail operations. They sent a memo to staff on May 27, 2024, which advised:
The introduction of the Framework is intended to standardize our approach to managing performance across all of our distribution centres. Importantly, the Framework does not change the performance standards or minimum performance expectations that have been applied across our supply chain business for over 10 years.
Since the introduction of the Framework, there had been widespread worker disputes, including one filed with the Fair Work Commission in April 2024, in which the respondent advised of approximately 1100 separate individual disputes across nine distribution centres within Australia. In June 2024, ongoing employee concerns led the United Workers Union (UWU) to claim that “engineered standards are a weaponized tool of workplace control and discipline, hidden behind a veneer of technological objectivity” and treat warehouse employees like robots. Strike action commenced on November 21, 2024, with more than 1500 UWU members demanding Woolworths remove the productivity rules that would discipline staff for not working fast enough. Woolworths claimed this strike action caused a decrease of over $50million AUD in sales and disrupted other retailers including Dan Murphy’s and BWS bottle shops. Leading into the busy Christmas season, the Framework was temporarily paused while Woolworths grappled with whether to abolish the Framework or make changes to address concerns?
The introduction of the Framework is intended to standardize our approach to managing performance across all of our distribution centres. Importantly, the Framework does not change the performance standards or minimum performance expectations that have been applied across our supply chain business for over 10 years.
Since the introduction of the Framework, there had been widespread worker disputes, including one filed with the Fair Work Commission in April 2024, in which the respondent advised of approximately 1100 separate individual disputes across nine distribution centres within Australia. In June 2024, ongoing employee concerns led the United Workers Union (UWU) to claim that “engineered standards are a weaponized tool of workplace control and discipline, hidden behind a veneer of technological objectivity” and treat warehouse employees like robots. Strike action commenced on November 21, 2024, with more than 1500 UWU members demanding Woolworths remove the productivity rules that would discipline staff for not working fast enough. Woolworths claimed this strike action caused a decrease of over $50million AUD in sales and disrupted other retailers including Dan Murphy’s and BWS bottle shops. Leading into the busy Christmas season, the Framework was temporarily paused while Woolworths grappled with whether to abolish the Framework or make changes to address concerns?
| Original language | English |
|---|---|
| Number of pages | 8 |
| Specialist publication | Ivey Publishing [Case Studies] |
| Publication status | Published - 22 May 2025 |