Australia’s Christmas booze supply under threat as warehouse workers threaten to walk off the job
Staff at warehouses supplying hundreds of Dan Murphy’s and BWS bottle shops on Australia’s east coast have threatened to strike in the run-up to Christmas.
The indefinite industrial action will begin from next week at four distribution centers in NSW and Victoria, all owned by the Endeavor Group, which also operates 350 pubs under the Australian Leisure and Hospitality Group business.
ASX-listed Endeavor Group was demerged from Woolworths Group in 2021.
The United Workers Union (UWU) has warned that the beer supply could dry up over Christmas if workers do not get their pay rise of at least 10 percent a year.
UWU national secretary Tim Kennedy said despite the “unforeseen circumstances” affecting the company, the scale of the strike action would cause disruptions to alcohol supplies.
“If the strike action continues, there will be a liquor shortage,” he said The Australian.
Primary Connect, which manages Endeavor Group’s warehouses, is said to be building up product reserves in stores and using alternative distribution centres.
“Contrary to statements made, we would like to reassure our customers that we do not foresee any major impact on stock availability in stores during the festive period,” an Endeavor Group spokesperson said.
“We are doing everything we can to ensure our customers have access to the products they love during the busy festive period ahead.”
Alcoholic drinks may be in short supply on Australia’s east coast over the festive period after workers at distribution centers (pictured, customers at a Dan Murphy’s in Adelaide)
The four warehouses employ 1,500 people and serve hundreds of bottle stores, including many Dan Murphy’s and BWS locations (pictured, a Dan Murphy’s employee in Sydney)
But Mr Kennedy said with a total of 1,500 workers at the centres, it would be extremely difficult to close the gap in the supply chain in the short term.
“It will be on a scale that we haven’t actually seen before… the network has never taken out more than one warehouse at a time. At the busiest time of year this will be a factor of four along the east coast,” he said.
‘It will be significant. You cannot replace an automated warehouse with unforeseen events. You can’t replace five million boxes quickly. There is no capacity in the system.’
The workers are asking for cost-of-living wage increases from 10 percent to 12.5 percent a year, but Kennedy said smaller increases would be considered provided they were above the country’s inflation rate of 2.8 percent.
Primary Connect has offered pay increases to staff at its four warehouses as part of the negotiations.
It offered Erskine Park center staff 12.05 per cent over three years, Melbourne South Regional employees 10 per cent over three years, Melbourne Liquor employees 12.1 per cent over four years and Wondonga staff 7.1 per cent over two years.
Beer supplies could dry up over Christmas if workers at liquor distribution centers in Victoria and NSW don’t get their pay rise of at least 10 per cent a year (stock)
Mr Kennedy said an agreement could only be reached if wages rose by at least 4.5 per cent annually and the Coaching and Productivity Framework directive was scrapped.
The document outlines the speeds at which employee tasks must be completed, which the union says can be used to discipline staff who do not adhere to these rules.
Primary Connect defended pay rates at its warehouses, saying many team members who worked full-time earned between $85,000 and $95,000 a year and that the productivity guideline was flexible.
Daily Mail Australia has contacted Primary Connect for further comment.