First Union have been successful at the Employment Relations
Authority (ERA) in getting the owner (Jacks Hardware & Timber Ltd)
of 2 South Island Mitre10 stores forced into a Collective Agreement and
to pay a living wage.
The operator of the 2 stores (Dunedin &
Mosgiel) was paying their experienced staff $18.70 p/h but now if the
staff are part of the union that figure must be the 'living wage' which
next month will be calculated at $21.15, and if they have an industry
qualification $23 is the minimum.
First Union had only 6 staff
members between both stores which had been arguing for this since 2013.
Now with this ERA decision more than 140 staff could get this higher
pay rate if they join that union.
The union alleged the Company deliberately stalled bargaining historically, which had led them to the Court action.
In concluding the decision the ERA remarked the previous bargaining had been "long, costly and unfruitful", and were guided by Mitre10's competition pay rates (Bunnings Warehouse) of $20.55 and $21.55 per hour.
Although
citing it to be a 'fair outcome' for all parties Jacks counsel had
argued this raise would be costing the company a 25% uplift in the wage
bill.
This is a first of its kind, precedent setting
decision from the ERA which is bound to be replicated further across the
retail sector nationally.