Foodstuffs workers to get big pay raise

Foodstuffs south Island DCSupermarket chain Foodstuffs and First Union have struck a deal that includes pay increases of up to 25 per cent for its distribution centre workers.

Foodstuffs North Island and First Union have signed a collective agreement that covers the company’s distribution centres.

The deal, which applies to Foodstuffs’ permanent workers at the distribution centres, will get a pay raise of between nine per cent and 25.2 per cent over the next two years as well as a rewards scheme for high performing employees and other employment benefits.

Workers in Auckland with over 5 years or more service with the company will have their hourly rate increased from $20 to $25 within the next 18 months. Labour workers will also be converted to permanent workers within six months.

All workers in Palmerston North will receive wage increases between seven per cent and 14 per cent this year as the company has agreed to pay the living wage by October. Similar increases for the Palmerston North with over five years’ service also apply next year.

“This agreement not only sees around 60 per cent of our members receive over 20 per cent in increases by the end of next year, but also sees the company commit to industry-leading practises for engaging labour-hire and the establishment of union management meetings with elected workplace reps from across the country, including those working in subsidiary companies,” said Jared Abbott, First Union Divisional secretary. “What’s most impressive is that this deal came about from the company listening to their workforce, not from strike action.”

Abbott said Foodstuffs South Island still has some way to come but is hopeful they will eventually adopt a similar approach.



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