Coles Myer announces $600 million supply chain revamp

The National Union of Workers (NUW) wants a commitment from Coles Myer that its members' jobs are secure after the retailer announced details of its $600 million supply chain revamp yesterday.

The supply chain project is set to deliver a $425 million per annum reduction in supply chain costs by 2008, according to Coles Myer chief executive John Fletcher with distribution centres reduced from 41 to 24.

Fletcher said there would be "no net reduction in jobs" as the project is not about cutting jobs but growing the business.

However, NUW secretary Greg Sword said he needed a formal guarantee and will meet Coles Myer representatives today to discuss the proposed changes.

"Our priority in talking to Coles Myer will be to get guarantees about the job security and rights of our members at all distribution centres across the country," he said in a statement.

"Once we have the details of the proposed changes we will report them back to our members and consider our response."

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