Photo: Supplied/Woolworths
A new collective agreement between First Union and Woolworths staff will give workers a pay rise of about 6.8 percent spread over the next two years.
It comes after what the union has described as a "difficult" bargaining process.
In the first year of the new deal, the minimum rate that the supermarket pays its staff will increase 3.3 percent to $25.85.
Staff will get an increase of 3.5 percent in the second year.
The supermarket will also offer a new rate of $26.35 an hour to those who are trained to work across three or more departments.
The agreement comes into effect immediately, with back pay to 1 July.
Before Christmas, staff will get a one-off payment of $175 if they work more than 32 hours, and $80 if they work fewer than 32.
The deal also includes the establishment of a quarterly working group that includes staff health and safety representatives to address issues such as safe staffing levels in stores.
Woolworths managing director Spencer Sonn said Woolworths wanted to be an employer of choice.
"That's why we're investing in our team's learning with a multiskilling programme that gives lifelong skills, more flexibility and critical foundations for a highly rewarding retail career.
"We've also improved our team benefits over the last couple of years with additional grocery discounts, industry-leading parental leave and wellbeing partnerships."
Woolworths staff get a 5 percent discount on all grocery items, 10 percent off fresh and down brand products and two 10 percent discount days a month.
First Union said the deal followed six months of "difficult" negotiations.
It included the first full withdrawal of labour by the supermarket's retail workers.
"Crucially, we have also avoided a series of Woolworths' proposed reductions to existing conditions in the new agreement, involving changes to night-fill earnings and the removal of fixed-term and casual workers from our coverage," said Rudd Hughes, First Union national retails secretary.
Michelle McKenzie, a Woolworths duty supervisor and member of the union bargaining team, said staff had been united throughout the bargaining process.
"Taking our first national walkout together was a huge moment for our team. It was a big ask for everyone and quite scary for some, but it ended up being very positive and we got a lot of support from customers.
"We had never walked off the floor before, but it was absolutely necessary to let people know about some of the issues we're dealing with in stores like understaffing and burnout.
"I'm proud that we've been able to secure a commitment to work together with the company on safe staffing levels, because it remains a major issue in supermarkets, and I'm pleased with what we've achieved."
Hughes said that while he was pleased that pay negotiations had been completed, the new agreement did not establish a minimum living wage or penalty rates for nights and weekends and had not re-established Woolworths as the wage leader for supermarket workers.
"Woolworths did not want us to query their profitability or the relative financial impact of their $400 million rebrand, and we lost many hours at the bargaining table before meaningful negotiations began.
"We have significant work to do over the next two years and will engage constructively with Woolworths over safe staffing levels while building union density in supermarkets and preparing for the next agreement in 2026."