Wesfarmers workers strike for 7pc pay rises as inflation gets ‘sticky’

Financial Review
Jun 23, 2023


Warehouse workers supplying Wesfarmers’ newly acquired Priceline pharmacies have walked off the job in support of inflation-matching 7 per cent pay rises and “same job, same pay” rules for labour hire.

About 190 employees at a big Melbourne distribution centre for Wesfarmers’ drug wholesaler, Australian Pharmaceutical Industries, began a two-day strike on Friday after rejecting 5 per cent increases as not enough to cope with the high cost of living.

The workers are also pushing to prevent labour hire casuals from getting paid “significantly” less than the direct permanent workforce.


United Workers Union members started the strike at the Dandenong warehouse, in south-east Melbourne, at 3am on Friday.

The strike comes in the middle of a major business campaign against the Albanese government’s proposed same job, same pay laws and as some workers are scoring inflation-matching pay rises of 6 to 8 per cent.

United Workers Union national secretary Tim Kennedy said Wesfarmers’ offer was “way short of what we need” and the dispute demonstrated a shift in workers’ attitudes generally about pay and cost of living.


“These are workers who are normally not red-hot on industrial action, but there is a change of mindset of the workforce,” he said. “We feel like things are bubbling over.”

API, which was bought by Wesfarmers last year, predominantly supplies Priceline as well as other pharmacy stores.


‘They are hurting’
During the pandemic, the employees worked to supply rapid antigen tests and masks to the community. Mr Kennedy said API awarded pay rises of only 2 per cent then but had assured employees they would make up ground when the pandemic was over.

He said workers “felt like they had done the right thing” but were now struggling to pay for rent, food and electricity.

“They are hurting,” he said. “Inflation is starting to look very sticky ... One of the delegates had to turn electricity off for big periods of the day because they can’t afford the bills.”

The workers are pushing for CPI and “catch-up” pay rises equating to 7 per cent a year for four years.

But API is understood to have offered 5 per cent, 4 per cent, 3.5 per cent and 3 per cent. It would guarantee pay rises equivalent to CPI, if greater, in the final two years. Inflation was at 7 per cent as of the March quarter but is forecast to drop.

A Wesfarmers spokeswoman said that “despite significant progress in working to an agreement that is fair and acceptable to our employees, a decision has been taken to stop work at the site for two 24-hour periods over the coming days.

“Regardless, Wesfarmers Health will continue to negotiate in good faith to get a fair resolution,” the spokeswoman said.

‘Political pawns’
The Reserve Bank revealed this week that it had raised rates in part because of fears workers would index wage claims to past inflation.

But Mr Kennedy asked “why are the poor people paying for this?”

“If Wesfarmers could afford to give their CEO a $1 million increase in wages year-on-year, they could afford to give logistics workers a $2.25-an-hour pay rise,” he said.


Workers at the API Dandenong site resolved to strike until Wesfarmers returns a “more equitable” offer.

Wesfarmers recorded a $2.35 billion profit last financial year and the group’s chief executive, Rob Scott, pocketed $8 million through sales of shares that same year.

The UWU leader also argued Wesfarmers was refusing site rates clauses, which ensure labour hire workers are paid the same as the direct workforce, because of the current business campaign against Labor’s same job, same pay laws.

“We think they’re using these workers as political pawns,” he said. “Many Wesfarmers companies already have same job, same pay clauses.”

He said workers would to continue to strike until the company came back with a “more equitable” offer.

The Wesfarmers spokeswoman said the supply of medication under community service obligations and national diabetes services scheme would continue.

UnSubRocky wrote on Jun 24^th, 2023 at 12:55pm:



Don't blame the corporation for it thought. It's the peasant workers wanting their little bit of cash.
Increasing profit from the last billion dollar target they hit is just business hey?