Union Disruption and Site Access Risk
During a major automated DC build for an ASX-listed national retailer, union tensions erupted into repeated site shutdowns across a critical two-week period. Delegates raised concerns about unclear contractor responsibilities, safety breaches, and exclusion from key risk planning sessions.
The builder, who had long-standing exposure to unionised sites — was caught in a bind, and the client and automation vendor lacked industrial leverage. Site access was repeatedly blocked, works were stood down, and the program faced USD $36,000 per day in liquidated damages, slipping schedules, and reputational impact.
Within 10 days, full site access was reinstated. No further shutdowns occurred. Industrial relationships stabilised, program momentum resumed, and the client avoided prolonged damages and reputational risk.
We didn’t defuse tension through appeasement — we removed the ambiguity that caused it. By supporting the builder and enforcing structured compliance, we eliminated the union’s leverage to escalate. Access wasn’t negotiated — it was regained through process clarity, documented structure, and unified governance.
Without this intervention, the project risked compounding costs, fractured trust, and stakeholder fallout across all sides — client, builder, and automation vendor.
DC builds of this scale aren’t just financial undertakings — they’re long-term service partnerships. Union-related shutdowns aren’t just delays; they sour relationships and increase delivery pressure on every party.
This resolution protected more than just access. It preserved future viability between all stakeholders — and demonstrated how industrial risk can be resolved without triggering open conflict or legal escalation.
