Woolworths execs to take pay cuts to help staff during coronavirus crises

Woolworths announced that it will continue to pay staff during the Covid-19 shutdown as its executive board members are prepared to cut their salaries by almost a third over the next three months to provide additional support to employees.

Woolworths board members, group CEO Roy Bagattini and the retailer's senior executive team members have agreed to forego up to 30% of their fees and salaries over the next three months, it said in a trading update.

It noted that it will continue to remunerate all staff, and those who are part of the essential workforce will receive an additional 'appreciation payment' for the duration of the current lockdown period.

Woolworths has also implemented a range of initiatives to support employees during this time, including alternative working hours to more flexible practices like work-from-home, leveraging a "full suite of technology tools" to make this happen.

In line with government regulations, Woolworths fashion, beauty and home stores, which are deemed non-essential operations, are closed for the duration of the nationwide lockdown, while the majority of Food stores remain open.
The group reported that sales in its food business rose 27.6% in the four weeks to end-March, while sales at Woolworth’s fashion and home business fell 27.8% over the same period as customers shifted to essential products.

"The shift of customer spend to essential products, as well as the compulsory closure of FBH stores during the current lockdown period, will have a material impact on the segment´s results for the second half of the financial year. We are however encouraged by the growth of our online channel which remains available to customers, notwithstanding that order fulfilment can only be effected post the lockdown period," the group said.

Written by: Staff writer.

Guzzle Media