Woolworths proposed restructure sparks job security fears among Māori and Pasifika

Woolworths’ proposed restructure, which may lead to reduced hours and pay for some staff, has raised concerns among workers and union representatives, particularly in the Māori and Pacific communities, who make up a large portion of the company’s workforce.

In an interview with Pacific Mornings host William Terite, Rudd Hughes of the First Union says the changes might result in employees doing the same work for less pay, despite Woolworths’ claims that the restructure will improve customer experience without reducing the overall team size.

The company has trialled the new model in four stores and plans to expand it, starting with Auckland and Northland, areas with high Māori and Pacific populations.

Hughes says the changes are causing anxiety and uncertainty about job security and working conditions among Māori and Pacific workers.

“They’re very anxious. There’s a whole lot of ambiguity when you bring in this kind of thing,” he says. “Some workers will change their positions, but it tends to be further up the chain of command.”

Despite their concerns, Hughes says a key feature of the restructure is the introduction of multi-skilled roles, which will require staff to work across different departments for higher pay.

“They put together a multi-skilling position, which is better paid, but you’d be able to work right across the store, whereas currently people work in one department.

“People don’t like change, and some people will not want to do that multi-skilled work. What we were told was that if anyone doesn’t want to do that multi-skilled work, they don’t have to.

“In some ways, it would be better for them if they because the money’s better but they will be working across different areas.

“We’ll see what comes out of the consultation, and then we’ll go forward with the full proposal … but you don’t put this kind of level of money and expertise together and put your staff through this kind of anxiety if you’re not going to make some changes.”

Hughes also questions the motivations behind the restructure.

“At a time of recession, they spent $400 million on a rebrand. That’s not great business sense. So, I think the company genuinely needs to make some changes, but it’s a challenging environment for them,” he says.

“There’s people coming through like Costco who will be impinging on their market.”

First Union says it supports workers through the transition, encouraging feedback and helping staff draft submissions during consultation.

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“We’re alongside our members right now. I’ve got all the organisers going out talking to all the delegates and talking to people going to meetings.

“We’re standing by our members, trying to support them as best they can get, encouraging them to write submissions and helping them write those submissions where they need help.

“Hopefully, what we’re going to see is some real uptake from the company around what those submissions are and what’s coming forward from the people on the floor.”

The outcome of the consultation will determine whether Woolworths proceeds with the nationwide rollout of the new model.