Farmers retail staff to go on strike for pay rise

Wednesday, 22 May 2019

Farmers store on Queen Street in Auckland. Retail staff in two Auckland stores will be walking off the job on Thursday, First Union says.

Farmers retail sales are preparing to take strike action over the next two weeks for better pay and working conditions.

On Tuesday staff from the department store's Henderson, St Lukes and North West stores in Auckland, and Paraparaumu and Dunedin took part in partial strike action, wearing uniforms with stickers protesting what they said was the company's 'unfair' performance pay system and 'unliveable' wages.

First Union's retail, finance and commerce divisional secretary Tali Williams said 80 per cent of Farmers staff were on less than the living wage.

'Minimum wages are not enough to live on. Farmers is well behind other major retailers with its pay rates. What's worse is that Farmers is one of the only major retailers with a performance pay system that actively keeps wages down,' Williams said.

Tali Williams from First Union says workers are upset over low pay rises.

* Pay dispute that 'severely' impacted KFC**

* Workers picket Auckland Farmers store calling for fair pay

'The strike action staff are taking, along with wearing t-shirts and stickers that call for liveable wages will raise awareness of these issues. Farmers needs to listen to their own family values and return to the bargaining table with a Living Wage for workers and their families.'

Farmers has about 2000 retail staff, 800 who are part of the union, Williams said.

The majority of staff were paid the minimum wage the union said, which increased from $16.50 to $17.70 on April 1.

The living wage also increased from $20.55 to $21.15.

Staff in two Auckland stores would walk off the job on Thursday, Williams said.

Rangiora Farmers staff called on the company to offer a fair living wage last year, but a year later the issues remain unresolved.

Farmers chief financial officer Michael Power said the company was disappointed with the union's action as it was arranging mediation.

'We have been in bargaining with First Union, which currently represents approximately 25 per cent of our retail staff, since March,' Power said.

Retail workers from First Union picketed outside the Napier Farmers store last year.

'We do not agree with what the union has said about Farmers in its media statements, and consider the use of the letter 'F', and its connotations, in the slogan the union has adopted to be particularly offensive,' Power said.

'Having said that, we do not intend to embark on a dialogue with the union through the media, and remain committed to bargaining direct with the union in good faith.'

The union alleged Farmers had unfair pay review methods, where it graded down workers in order to avoid giving them a pay rise, or would give staff a minimal increase in pay after a performance review.

'There's an essential problem with performance pay. The union doesn't have a problem with their performance being reviewed, that's critical … our concern is when it links to somebody's base pay because it incentivises the manager to rate the worker lower to keep costs down or within budgetary constraints, Williams said.

'That feels really awful when you've been told all year you've been a great worker, all the customers love you, but when you sit down for your performance pay review rating you got a C or D [grade].

As a result Farmers' workers have graded their employer with an F, for its employment practices, Williams said.

Last year Farmers staff took strike action for the same issues, which had not been resolved.

First Union accused Farmers of heavy-handed intimidation tactics after some striking workers were given suspension notices for protesting against pay conditions.

Workers in 40 stores around the country are expected to part-take in strike action, including picketing and handing customers leaflets.