Hundreds of workers for Woolworths Ltd, Australia’s largest retailer, have walked out of one of its largest distribution warehouses, according to reports.

The AAP reported that the National Union of Workers staged a walk-out at the Broadmeadows warehouse in Melbourne on Friday afternoon (29 October).

According to the reports, a Woolworths spokesperson said it was using other distribution facilities to do the logistics and “it’s working really well”.

The workers are protesting against the latest wage offer, which the union said could cut pay for some workers by up to A$324 (US$319) a week.

Woolworths was offering a 3% wage increase but only if some entitlements were cut back, including penalty rates, shift loading and other conditions, the union said.

The Broadmeadows distribution centre services aroudn 200 Woolworths stores in Melbourne and its surrounding areas.

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The union said no further negotiations ahve been planned but regrets any inconvenience the indefinite action could have on shoppers.