Coles is subjecting staff to bag checks at the end of their shifts in a crackdown on grocery theft targeting some of Australia’s lowest paid workers.
The bag check policy, which has been tightened as food prices surge, requires employees leaving a store to present their personal bags for inspection.
Those who refuse to have their bags checked can be fired, according to the Coles policy which was updated last year but only recently routinely enforced, according to worker representatives. It replaces a previous practice whereby staff bag inspections were only used after a genuine suspicion of theft.
“The reason they’re bag checking is because they know that their own workers are forced to think about stealing because they can’t afford food,” the secretary of the Retail and Fast Food Workers Union (Raffwu), Josh Cullinan, said.
“We have these ridiculous situations where workers may have their sanitary items and prescription medication, and they have to show it to their manager.”
A Coles spokesperson said bag check policies were standard across the retail industry.
“While the policy was paused for a short time, it has been at Coles for many years,” the spokesperson said.
Coles and rival Woolworths have enjoyed a period of bumper returns after raising grocery prices at a faster pace than inflation, leading to increased profit margins during a period of financial strain for many households.
Coles recorded a 4.8% lift in annual profit to $1.1bn in its most recent results, while Woolworths posted a $1.62bn result, representing a 4.6% increase.
Consumer group Choice criticised the supermarkets for “cashing in during a cost-of-living crisis”, earning the pair an ignominious Choice Shonky award.
The supermarket chains have consistently denied price-gouging allegations and have credited improved productivity for increasing profitability.
Coles and Woolworths have also recorded a significant rise in shoplifting linked to high living costs, prompting the increased use of covert security, self-checkout cameras and biometric trackers.
While the use of in-store surveillance has stirred debate around privacy for shoppers, it was not previously known that staff were also subjected to stricter security measures.
In a 2022 Coles document explaining the changes, staff are told its new policies are designed to reduce stock loss. Managers are also required to conduct a “minimum number of locker checks randomly each month”, with the relevant employee, and a witness, present during the inspection.
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A Woolworths spokesperson said in the same way customers may be asked to have bags checked upon exiting a store, the policy could be extended to team members when their shift is complete.
Amid wider concerns over pay and conditions including worker safety, Raffwu members at Coles stores in Victoria are preparing to strike on Friday to coincide with the supermarket’s annual general meeting in Melbourne.
Members in other states are preparing for a series of seven-minute stoppages also on Friday, in a tactic designed to frustrate supermarket systems which must record and dock pay accordingly.
It is calling for a $29 hourly base rate for workers, more than $4 above the minimum wage which was recently lifted.
The Coles spokesperson said staff receive above-award conditions and that there would be no disruption to operations.
“Thousands of our team members will continue to serve our customers across Victoria,” said the spokesperson, noting that only a comparatively small number of staff were Raffwu members.
“We negotiate in good faith with all relevant bargaining representatives in line with our obligations under the Fair Work Act and remain committed to negotiating a fair and balanced agreement for all.”
Raffwu, the smaller of the two unions that represent supermarket employees, has become increasingly active in a sector it believes does not have adequate pay and protections for workers, especially given the strong profits recorded in recent years.
Cullinan previously exposed a poorly constructed wages deal at Coles that had to be redesigned after the Fair Work Commission ruled the supermarket chain had underpaid employees.
Raffwu regularly spars with the more established Shop Distributive and Allied Employees Association.
Coles shareholders will gather on Friday to vote on a series of resolutions including the company’s executive remuneration plans.
The Australian Shareholders’ Association has recommended voting against long-term incentives for the chief executive, Leah Weckert, after noting the potential bonus was high, considering it was not difficult for Coles to generate returns in what is close to a duopoly market.
It also raised concerns over ongoing legal action stemming from past staff underpayments.
Woolworths recorded a first strike against its remuneration report at its annual meeting late last month, amid criticism that executives were being rewarded despite the recent deaths of one employee and one contractor in workplace accidents.
Under rules designed to hold board members accountable for executive pay, a second strike next year would give investors a chance to spill the Woolworths board.
