Human Resource Management Issues at Woolworths: A Detailed Analysis

This report examines a significant human resource management issue faced by Woolworths, Australia's largest retail chain, concerning allegations of poor pay for trolley collectors. The report provides background information on Woolworths, highlighting its organizational structure and operational scale. It identifies the specific HRM issue of wage discrimination, detailing the Fair Work Ombudsman's investigation and the company's response. The report then outlines the relevant HR policies in Australia, emphasizing the principles of equal pay and non-discrimination. Recommended HR practices are suggested to prevent similar issues in the future, focusing on employee satisfaction and adherence to fair work standards. The report concludes by emphasizing the importance of effective HRM in maintaining a positive work environment and avoiding legal controversies, contrasting Woolworths' approach with that of a competitor. References include sources such as HR Online and the Fair Work Commission website.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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Introduction
Human resource management is an important activity for any business organization. This
is because, the human resource is the most important resource for a business organization, and
hence its effective management is necessary. This assignment highlights a human resource
management issue that is faced by one of the most famous business organizations of Australia,
Woolworths. The background of the organization is highlighted, along with the HR issues
identified. The current HR policies of Australia are highlighted, along with the recommended
HR policies. The causes of the issue faced have been shed light upon and the ways to ensure that
such incidents could be avoided is also mentioned in this assignment.
Background of the organization
Woolworths is the largest retail chain of Australia. The first Woolworths store was
established in 1924. With time and hard work of the employees, the company has become the
largest retail chain in Australia and New Zealand (Welcome to Woolworths, 2017). In the
present day, Woolworths employs more than thousands of people in Australia and New Zealand
and caters to the needs of millions of customers. The company follows a tall structure with
various levels of hierarchy (Welcome to Woolworths, 2017). Since the company is a large one,
with thousands of employees, hence the tall structure is effective in ensuring proper functioning
of the company.
The HR issue identified
One of the major human resource management issues that have been faced by
Woolworths in the recent times is the allegation of poor pay for the trolley collectors (Maguire,
2017). On 30th May 2016, a news published in The Human Resource Director, Australia,
highlighted the fact that allegations against the company has been brought due to the low wages

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paid to the trolley collectors in the supermarket chain (Maguire, 2017). Following this allegation,
the Fair Work Ombudsman had sent out a general warning regarding the discrimination and
mentioned that the company is likely to face prosecution for the discrimination in the wages
(Maguire, 2017). The enquiry began in 2014 and the Fair Work Ombudsman hoped that the
discrimination of the trolley collectors will be mitigated and moral and ethical responsibility will
be ensured. Another major retail chain Coles faced a similar issue. However, they rectified their
policy and ensured that no discrimination of the trolley collectors will be done in future. Unlike
Coles, Woolworths did not revise their pay scales. They tried to establish the fact that
Woolworths pays the right amount of compensation of the trolley collectors.
HR policies of Australia
The HR policies in Australia ensure that equal pay among the employees are
implemented by all the business organizations (Brewster, Mayrhofer & Morley, 2016).
Moreover, discrimination among the employees based on their age, cast and gender is not
accepted in the HR policies in Australia (Stone, 2013). According to the HR policies of
Australia, the discrimination of the employees in the wages being paid is violation of the Fair
Pay Act ("Fair Work Commission | Australia's national workplace relations tribunal", 2017).
Thus, the HR issues that took place in Woolworths resulted in the non-compliance of the HR
policies in Australia.
Recommended HR practices
In order to ensure that the similar HR issues do not occur in Woolworths, the
discrimination of the employees on the basis of the wages should not be indulged. Moreover,
equality among the employees has to be ensured, such that Woolworths do not enter into
controversy due to HR management issues (Sparrow Brewster & Chung, 2016). With the

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warning published against Woolworths by the Ombudsman, the company rejected the warning.
They ensured that the trolley collectors were well paid and ensured that they practiced fair work
in their organization. The HR has to ensure that employees are satisfied with the policies of the
business organization. The equal pay of the trolley collectors will ensure employee satisfaction,
thus resulting in employee retention.
Conclusion
Human resource management is an important activity that has to be taken up by any
business organization. it is important that the HRM ensures that no discrimination among the
employees should be indulged in the business organization. Discrimination in the wages has to
be mitigated, so that Woolworths abide the policies set by the fair work commission. The HR
issue that have been faced by Woolworths resulted in loss of the goodwill. Coles faced a similar
issue. However, they ensured that they trolley collectors are paid with the right among of wages,
abiding by the HR policies of Australia. Thus, Woolworths have to ensure that HR policies are
successfully abided by, in order to avoid controversies in future.

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References
Brewster, C., Mayrhofer, W., & Morley, M. (Eds.). (2016). New challenges for European
resource management. Springer.
Fair Work Commission | Australia's national workplace relations tribunal. (2017). Fair Work
Commission. Available at: https://www.fwc.gov.au/ [Accessed on 25 Aug 2017]
Maguire, J. (2017). Woolworths hits back against exploitation claims. HR Online. Available at:
http://www.hcamag.com/hr-news/woolworths-hits-back-against-exploitation-claims-
216760.aspx [Accessed on 25 Aug 2017]
Sparrow, P., Brewster, C. & Chung, C., (2016). Globalizing human resource management.
Routledge.
Stone, J.R. (2013) Human Resource Management, 8th edn. Wiley, Australia
Welcome to Woolworths. (2017). Woolworths.com.au. Available at:
https://www.woolworths.com.au/ [Accessed on 25 Aug 2017]