How to pass path of selected file from Finder to Automator Shell script
Solution 1:
Add cd "$(dirname "$f")" before the unzip line.
for f in "$@"; do
cd "$(dirname "$f")"
unzip -o "$f"
done
or without changing to the directory, use the -d option
[-d exdir]
An optional directory to which to extract files. By default, all files and subdirectories
are recreated in the current directory; the -d option allows extraction in an arbitrary
directory.....
for f in "$@"; do
unzip "$f" -d "$(dirname "$f")"
done