First Union members have ratified Costco’s first Collective Agreement, which includes starting rates above the living wage, penal rates and overtime.

Nearly 200 First Union members who work at Costco in Auckland will be paid $26.50 per hour, which is above the living wage of $26.

There will also be a progressive pathway to earning $30 an hour after four years of service with the company.

Bill Bradford, First Union assistant to the general secretary, said about two-thirds of Costco staff are union members, adding they had spent several months negotiating the company’s first collective agreement since the retailer’s debut in Aotearoa last September.

“We’ve enjoyed constructive bargaining with Costco and our members are hopeful about building on this positive relationship over the coming years,” Bradford said.

“This agreement sets a new standard for supermarket wages in New Zealand ahead of a Fair Pay Agreement.”