Woolworths closes two Auckland stores, plans to reduce managers

Thursday, 10 April 2025

Woolworths says it plans to move staff out of management jobs and on to the shop floor to improve overall service.

Supermarket company Woolworths will close its stores in the Māngere Mall and Blockhouse Bay when their leases end later this year, and will cut management staff in other stores as part of a wider restructure of the business.

The Māngere Mall store would close in September, followed by Blockhouse Bay in November, a spokesperson said in a written statement, citing a drop in customer numbers.

But Workers First Union national retail secretary Rudd Hughes said the restructure would affect 4400 members, lead to reduced income for workers and should not go ahead in its current form.

The wide-ranging restructure would disestablish all department management and duty supervisor roles, Hughes said.

Woolworths said that under the new structure staff would work together rather than in separate departments. The changes would move staff out of management jobs and onto the store floor filling shelves and improve overall service.

The new model would be trialled in upper North Island stores and consultation would begin shortly, the spokesperson said.

“Over the coming months we’ll be working closely with each of our team members to find suitable new roles wherever we can and ensure a smooth transition.”

Woolworths staff went on strike last year for a pay rise to the living wage.

The new model would create “clearer leadership pathways”, including a new tier of store management to ensure the right number of managers and staff in stores at peak times, the spokesperson said.

Hughes said staff working in management roles could have their pay cut and hours reduced as a result of their re-employment under newly created roles, and many were considering redundancy.

“A bakery or butchery manager will potentially face a decrease of about $15,000 to $17,300 per year, while other department managers will face average pay decreases ranging from nearly $10,000 to $11,700 per year under this proposal.”

While some would opt for redundancy, it was not a viable option in smaller or more remote regions without comparable jobs on offer, he said.

“Imagine you’ve worked for your local Woolworths in a specialist role and reached a senior pay band after 20 years on the shop floor — now, many will be back to square one and facing significant financial hardship as a result of the restructure.”

The union wanted Woolworths to protect the existing pay and conditions of staff in roles due for disestablishment until a role was re-filled when the worker retired of resigned.

“Woolworths have the right to pursue a restructure on their own business grounds, but they have not taken on board the most important concerns of workers and are pushing to the same conclusion they’ve always sought — reduced operating costs,” Hughes said.

The company said it would spend $6.6 million on training and upskilling staff. Woolworths employs about 18,000 staff in New Zealand.