Supermarket giant Woolworths is proposing a restructure of its store roles across New Zealand, with changes that will see existing management positions disestablished and new roles created.

A Woolworths spokeswoman said that despite the changes, there would be no overall net job losses.

“Our customers are looking to us to improve their shopping experience, and we believe that our proposed model would put the right expertise in the right place at the right time to do exactly that,” the spokeswoman said.

“It would mean more team on the store floor helping customers, ensuring the products they need are on the shelves, and improving our overall service and experience when they shop with us.”

However, some employees remain concerned about what the changes will mean for their future.

A senior Christchurch worker told chrislynchmedia.com that all department managers and senior in-store management, excluding store managers, had been informed their positions would no longer exist.

“Managers have been told their options were redundancy or applying for a new position,” the worker said. “All other team members, including supervisors, will have their current positions disestablished and be placed into new roles, with likely changes to their title, pay, hours, days of work, and duties.”

“To give an idea, we have nine managers who will be looking at trying for five roles.”

The worker also said the announcement came with little notice. “We found out yesterday at 11am, we had a meeting at 1pm, and that’s when I was told.”

When chrislynchmedia.com asked Woolworths what would happen if some managers were encouraged to apply for positions that were either unsuitable or came with lower pay, the spokeswoman said they were still working through those details.

Company says restructure based on feedback

In a document seen by chrislynchmedia.com, titled “Proposed Better Together Operating Model,” Woolworths said the restructure was based on feedback from customers and staff.

According to the document, customers wanted better product availability, fresher food, and improved service, while staff were seeking a safer work environment, better rosters, improved training, and stronger career pathways.

Woolworths said it had been testing the proposed model in four stores for six months and had seen “pleasing results from both a customer and team perspective.”

The spokeswoman said, “We’ve trialled the proposed model in four of our stores for six months. During that time, we’ve taken on board feedback from our local customers, team and Workers FIRST Union. We’ve heard from customers that the proposed model means they’ve been able to get more of what they need in store, when they want it. We’ve learned along the way and made tweaks like adding an additional leader in some stores and distributing tasks more evenly across different store areas.”

However, a worker described the document as “propaganda” and remained sceptical about whether employee feedback would be genuinely considered.

“It should also be noted that it is ‘proposed,’ but as with the previous restructures I’ve been a part of in this company, everything they propose goes ahead exactly as they say, regardless of our ‘feedback’,” the worker said.

“When we asked questions yesterday—for the whole three minutes they allowed—all our questions were answered with, ‘I’m not entirely sure, this is only a proposal, so finer details aren’t available right now.’ How are we supposed to give feedback when we don’t know the details?”

New structure to focus on functions instead of departments

Under the proposed changes, stores would no longer be organised by departments but instead by specific functions.

A new Team Experience group would be responsible for scheduling, recruitment, and succession planning. A Customer Experience team would oversee customer service standards, both in-store and online, and manage the loyalty program. The Availability function would ensure inventory accuracy, price integrity, and stock receiving, while Replenishment would handle stock levels to meet customer demand. The Merchandise team would focus on fresh food quality, store presentation, cleaning, and overall sales planning.

Woolworths said the proposal was still under review, with staff feedback being sought until 24th March 2025.

“We don’t know the full impact on you yet. At this stage, we are seeking feedback about the proposed model. If the decision is made to proceed, we’ll connect with you again to talk through any proposed impact to your role, roster, tasks, and team,” the company said.

The spokeswoman said the company was working closely with staff and FIRST Union as part of the consultation process.

“We’ve also heard from our team that leadership opportunities in our stores aren’t as appealing as they could be, and our proposed model would include clearer career pathways and opportunities with $6.6 million invested in upskilling our team,” she said.

“The proposed model would not result in a reduction of Woolworths New Zealand’s overall team size.”

She added, “It’s now time to look at how we might roll the proposed model out across the country to bring a refreshed service experience to more of our customers. We’ll be listening closely to our team’s feedback during consultation, before we reach any decisions, and our focus is supporting them through this time.”

First Union responds 

First Union National Retail Secretary Rudd Hughes told chrislynchemedia.com “the claims made at bargaining by Woolworths gave the union a clear indication that a restructure was already underway.

“There have been a number of trials run by the company, and we have had discussions around these with the company since they started.

“We have tried to lessen the impact on our members while at the same time expressing concerns to the company about the process, particularly around redundancies and whether or not some of the role changes are lawful” Hughes said.

“We have asked about the possible number of redundancies across the country but have had no definitive answer from the company, and this may change after the consultation with the membership.  I would approach the company on this.

“We will be supporting our members during this consultation period, and advising them to provide as much feedback as possible to the company.  We will also be looking at the legality of changing job titles as a way of decreasing workers’ wages – that is, doing the same (or more) for less money under a different job title.”