Bunnings offers Living Wage after union bargaining

Tuesday, 7 August 2018

Bunnings has agreed to First Union's terms for its collective agreement.

Bunnings is set to pay all its staff at least the living wage of $20.55.

It follows renegotiation of First Union's collective agreement with the retailer.

The deal, which members will vote on over the coming weeks, increases base rates by $2 an hour. It will then roll out across the staff.

First Union retail, finance and commerce division secretary Tali Williams said it was the same offer that the union put forward.

She said it set a new precedent for other retail companies.

'This is a massive victory for retail workers in New Zealand. No longer will they accept being paid low wages. Bunnings has set a new bar for what retail workers deserve to be paid.'

Williams said the agreement aligned with the union's Worth It campaign, which seeks to lift some of the lowest pay rates in New Zealand.

'This negotiated offer from Bunnings will change workers' lives. It recognises the Living Wage is a necessity to ensure working people are thriving not struggling to survive.'

She said Bunnings had agreed to a 2.5 per cent pay increase next year, which was likely to be more than the Living Wage increase.

Jacqui Coombes, Bunnings human relations director said it was important that staff felt valued and were rewarded.

'In March, Bunnings increased parental leave from eight to 12 weeks' paid leave. This is now payable at commencement of leave instead of split between the commencement of leave and after returning to work. We have also increased non-primary carers paid parental leave from one to two weeks. We initiated the current wage offer to provide market leading entitlements and are pleased to be in a position to begin consulting with our team.'

The Living Wage rate is voluntary and for 2018 is $4.05 more than the minimum wage set by the Government.

It is designed to be the hourly wage a worker needs to pay for the necessities of life and participate as an active citizen in the community. It reflects the basic expenses of workers and their families such as food, transportation, housing and childcare, and is calculated independently each year by the New Zealand Family Centre Social Policy Unit.