NDU victory in last year’s Progressive Distribution Centres lock-out and growing demand from retail workers for better wages and conditions have created a momentum that has paid off for thousands of shop workers covered by NDU national collective agreements up for renewal this year.

The new collective agreements have delivered some of the biggest pay rises since the 1980s.

There were many factors that strengthened the union’s hand at the bargaining table - including a higher minimum wage, Sue Bradford’s Bill in Parliament to abolish the youth minimum wage and the pay boost won by low paid workers in the hospital and fast food sectors through the Service and Food Workers Union’s Healthy Hospitals campaign and Unite’s Supersize My Pay campaign.

At the beginning of the year, we launched our Shelf Respect campaign in Progressive’s Woolworths, Foodtown and Countdown stores, Farmers, Kmart, Postie+ and Bunnings. These campaigns have led to a steady rise in NDU numbers and increased the power of workers in these chains to negotiate good agreements. But that does not mean that negotiations were easy. All companies were very reluctant to offer the significant wage increases that the union finally secured. While these increases are welcome relief, retail still has some of the lowest pay rates in NZ.

NDU retail gains include:

Progressive supermarkets
Common wages and conditions across Woolworths, Foodtown and Countdown, lifting the base rate by $1.91.Youth rates are being phased out and wage increases see checkout operators paid $13.59 from August next year.

Farmers
Wage increases range from $1.00 per hour to $4.00 an hour. General sales people at Farmers will be now be paid $13.50 within six months of starting work (up from the minimum wage of $11.25). Fashion consultants that were formerly paid $12.50 will get $16.50 next April.

Postie +
Wages increased by at least $1.00 per hour

Kmart
As we go to print final agreement has not been reached but the current position will see wage increases of $1.75 / hr for the lowest paid adults and even more for young people through the elimination of youth rates by 1 February 2008.

Bunnings
All Bunnings workers received a wage increase soon after the union started recruiting there and during the negotiations they received another modest increase. Negotiations are set to resume on 7 December for the first CEA at Bunnings since 2001.

Pak ‘n Save
As well as these victories in the national chains, the NDU Growth Unit has been active in recruiting and negotiating collective agreements in Pak ‘N Save stores in Auckland. So far Pak ‘N Save stores have been organised at Lincoln Rd, Manukau and Albany with negotiations about to start at Alderman Drive, Royal Oak and Mangere. Collective Agreements negotiated have included wage rises of up to 22% for adult workers or 36% where significant movement has been made on phasing out youth rates.