Woolworths' planned pay structure for its online shopping centre workforce has been knocked back. 

The retail giant sought to align wages of online shopping centre employees with those of traditional supermarket workers, but faced strong resistance.

The supermarket giant’s bid was thwarted by a ruling from the Fair Work Commission (FWC), which confirmed that Woolworths' customer fulfilment centres (CFCs) fall under the retail award, a decisive outcome that the company could not alter. 

The central issue revolved around the definition of CFCs, which Woolworths hoped to expand to include an array of sites beyond physical stores. 

The United Workers Union and Transport Workers Union vehemently opposed this expansion, raising concerns about the erosion of worker conditions and the potential extension of the change to conventional distribution centres.

The FWC found there was insufficient evidence to endorse Woolworths' proposed alterations, given the broader repercussions it might entail. 

The impending impact of automation and the shift towards ‘uberisation’ of online grocery shopping were highlighted as crucial factors. 

The bench also referred to an analysis by The Australian Financial Review, which detailed the shift from e-commerce to “quick commerce” (q-commerce) and the integration of UberEats-style operations by Coles.

A Woolworths' spokesperson has expressed the company's resolve to ensure meaningful work opportunities for its employees despite the setback.

The FWC bench emphasised that the ongoing transformation necessitates parliamentary attention to safeguard the rights of gig workers in this evolving industry.