Woolworths New Zealand has agreed to increase the wages of its workers by about 6.8 per cent over two years in a recently signed collective agreement.

The deal comes after six months of negotiations between Woolworths and the First Union, which represents more than 10,000 members working at the supermarket chain.

“Significant pressure has been placed on Woolworths workers and union organisers during these six months of negotiations,” said Rudd Hughes, First Union national secretary for retail.

“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.”

Hughes said that he is pleased that it reached an agreement with Woolworths before Christmas. However, he noted that the agreement is only good for a year and does not establish a minimum living wage or penalty rates for nights and weekends.

“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,” said Hughes.