Coronavirus: Bunnings Warehouse cuts staff salaries and hours by 20%

Tuesday, 5 May 2020

Bunnings Warehouse opened up for online and click-and-collect orders in level 3.

Bunnings Warehouse has cut its salaried workers pay and hours by 20 per cent until it can trade 'normally'.

Bunnings Warehouse New Zealand director Jacqui Coombes said 'uncertainties of the current environment' and its limited ability to trade under level 3 and 4 restrictions had created a 'significant strain' on the business.

'Accordingly, we have temporarily reduced working hours and pay for all our salaried team by 20 per cent, this will continue until we enter level 2 restrictions or can trade normally,' Coombes said.

A Bunnings Warehouse spokeswoman said store-based wage staff were not included in the cut in hours and pay.

The DIY hardware retailer, which was able to trade as an essential items provider during the lockdown, said it paid staff their normal wages during level 4.

Bunnings Warehouse has 4000 staff and has applied for the wage subsidy.

* Coronavirus: Warehouse not expecting normal until at least level 2, cuts pay of some staff

* Bunnings selling essentials goods online**

Bunnings did not qualify for the government wage subsidy in March because it could not demonstrate the required 30 per cent loss in revenue.

But on April 1, three days into the lockdown, the company told staff it would apply for the wage subsidy. One worker said the human resources department confirmed the application had been made on April 15, however, the company was yet to receive confirmation.

The spokeswoman said Bunningswas still waiting to hear from Ministry of Social Development (MSD) on its wage subsidy application. The company employed more than 4000 people in New Zealand.

The wage subsidy scheme covers full time, part-time and casual workers.

However, one casual worker said she had gone without work or pay for six weeks.

The worker, who worked 25 hours a week on average, said she was nervous about her future after not receiving an update on whether or not the company had received its wage subsidy.

'I can't understand why this is taking so long. I've asked for hours and told them I'm available but haven't heard anything. They're priotising permenant staff.'

The Bunnings spokeswoman said casual staff were paid for any hours that were rostered and it was reviewing their average hours worked in the last 12 months for any support payments they qualified for.

MSD has been approached for comment.

In an email seen by Stuff, Bunnings said the company would not be able to provide wage increases to any staff this year as the company had to use money set aside for payrises to pay staff during the pandemic.

First Union national organiser Kirstin Miller said it would still negotiate with the company for payrises for its members.

Miller said Bunnings had been consulting with the union during the lockdown.

'As far as I'm aware everyone wanting to has been able to go to work, apart from a few vulnerable workers that either have compromised immune systems or have someone like that in their bubble.'

On April 24, MSD had paid out close to $11 billion in wage subsidies, while about $17.5 million was being repaid by more than 1200 companies.