Tuesday 14th August

Union and Supermarket Chain reach a deal to lift industry standard, inc youth rates

The National Distribution Union and New Zealand’s largest supermarket employer Progressive Enterprises have reached agreement, on a deal that will set the standard for almost half of the country’s supermarket workers.

Progressive Enterprises Ltd, a division of Woolworths Limited operates supermarkets under the Countdown, Foodtown and Woolworths banners. Union members start voting on a recommended settlement this week.

When ratified, the deal will lift base pay rates for Foodtown and Countdown employees up to the higher pay level of Woolworths employees.

For a new checkout operator at Countdown the deal will deliver a $1.98 per hour pay increase by next June, or over 17% during the 22 month term of the agreement.

With over 3,500 employees under the age of 18 Progressive is one of the country’s largest employers of young people.

Under the proposed agreement young workers who have worked for 3 months or 200 hours, whichever comes first, will move to the full adult rate in the collective agreement next year – approximately 65% increase for a 15 year old at Countdown and a 46% increase for a 16 year old.

The Company and Union have heralded New Zealand’s biggest retail collective agreement and the positive way in which it was achieved as a reflection of the development of an effective working relationship between all parties.

NDU advocate Paul Watson said “As the biggest single employer in the retail business in New Zealand Progressive has a huge influence on employment standards so this agreement should help lift the bar across the industry.”

General Manager Foodtown/Woolworths Dave Chambers said “We have been working with our team and the NDU for sometime on achieving this milestone settlement. The terms of settlement represent significant investment by the company and NDU in terms of recognising important joint objectives such as simplified pay classifications, wage rate alignment across our different supermarket brands, and recognition of the contributions made by our team members.”

“With much of the remaining supermarket workforce on minimum wage or just above the union will have plenty of opportunity to build on this new national standard,” said NDU National Secretary, Laila Harré.

Peter Smith, Managing Director of Progressive Enterprises commented that "achieving this settlement reflects the constructive and cooperative relationship which has been developed between the parties."

ENDS

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