Woolworths’ decision to outsource road transport services to trucking company Linfox could affect as many as 200 workers in Victoria.
The outsourcing is expected to take place in April and May with Woolworths saying it would explore all avenues to minimise job loss.
However, staff not redeployed within Woolworths will be offered a redundancy.
The grocery giant said it has invited Linfox to talk to staff about potential positions at the trucking company.
The change brings the company’s transport services in Victoria into line with other areas of Australia that have already been outsourced.
“We will work with the 200 staff to redeploy them within the Woolworths business,” a Woolworths statement said.
“Staff who are not redeployed will be offered a redundancy, and we will work through these details with staff and the union.”
Last year Woolworths came under fire with accusations from the Transport Workers Union (TWU) that tight deadlines forced on drivers are unrealistic and forcing them to drive unsafely.
He said the larger transport industry is being impacted by the behaviour of the major supermarkets.
But Australian Logistics Council chief executive Michael Kilgariff told the ABC the latest claims from the TWU need to be substantiated and he believes there is enough regulation in the industry.
"The Australian Logistics Council has a retail logistics supply chain code of practice which deals with these issues such as waiting times, and both the carriers and the supermarkets are very focused on making sure that we don't have these sorts of situations occurring,” he said.
"The supermarkets are currently liable under chain of responsibility laws – as is everybody in the supply chain – for incidents that may occur anywhere else in the supply chain where it can be demonstrated that they somehow caused it to happen.