L'Oréal to pay living wage in Mangere distribution centre

Wednesday, 11 April 2018

Until now L'Oréal's workers were paid rates ranging from $15.75 per hour for new starts to $18.71 for more senior workers.

Workers at L'Oréal's South Auckland distribution centre will receive the living wage as the company decides to increase its minimum wage to $20.55.

The workers proposed strike action after one of their colleagues had been sleeping in his car due to high Auckland costs and low pay.

First Union's transport, logistics and manufacturing divisional secretary Jared Abbott said until their colleague's story had appeared in the media, many workers just accepted their conditions.

The living wage meant families would no longer struggle to make ends meet, improving their mental and physical wellbeing, Abbott said.

* Minimum wage set to jump to $20 by 2021

* Minimum wage workers can't afford a basic life in Auckland

'This is about companies realising that employees are people with the need for money to not only pay for life's bills, but to enable them to have some down time with their families,' Abbott said.

'This is about general common decency. We are thankful for our members who had the courage to say enough is enough, and to L'Oréal for responding in a humane way.'

Until now L'Oréal's workers were paid rates ranging from $15.75 per hour for new starts to $18.71 for more senior workers.

There were also a number of long-term labour-hire workers still on minimum wage, despite having worked there for several years, and the company had agreed to convert employees on labour hire contracts to permanent jobs, Abbott said.

He said the change had been a long time coming as the union had been in talks with the company for a 'number of years' over its labour hire standards and minimum wage issues.

L'Oréal NZ spokeswoman Tanya Abbott said the change would standardise the hourly rate for all employees at the at the distribution centre and raise the pay of 17 staff at the site.

She said L'Oréal reviewed its wage and employment conditions on an annual basis.

The national minimum wage lifted from $15.75 to $16.50 on April 1, and is set to soar to $20 within four years.