Unions say many workers at The Warehouse will not benefit from the company's new Career Retailer Wage concept.
Founder Sir Stephen Tindall and Warehouse Group chief executive Mark Powell told Q+A this morning that the decision to introduce a Career Retailer Wage (CRW) was influenced by the Living Wage Campaign.
The CRW could see Warehouse staff receive an increase to their overall package to anywhere between $18.50 and $20 per hour, dependent on their role.
But First Union, which represents 2000 Warehouse Group workers, says while it is great long service is to be recognised for some people, the Career Retailer Wage only applies after 5,000 hours service.
The union says thousands of Warehouse workers will take many years to reach 5000 hours.
"It's been a long time since The Warehouse employed shop workers on 40 hours, the union says. "Most are part time workers - it's not uncommon to only have two shifts a week."
First Union says almost all Warehouse workers want and need more hours and for a part timer on 25 hours per week, 5000 hours is nearly four years away.
The full Career Retailer Wage is discretionary to management and also on stores meeting budget targets.?
The union says checkouts, nightfill and shopfloor staff are by far the largest group of workers at The Warehouse and under the company proposal, their rates would be going from 14.97 to 15.19, and then 15.27 in February
"This is a far cry from the 'Living Wage' being promoted by the company," the union says, adding that it is very supportive of getting retail work the career pathway it needs.
Tindall unfazed by low wage attraction
Meanwhile, Sir Stephen Tindall, is backing Australian companies moving parts of their operations to New Zealand, even though low wages are part of the attraction to move here.
When asked by Q+A host Susan Wood if he was concerned that Australia was chasing our low-wage society, Sir Stephen said he was not worried.
"I'm not concerned at the moment, because I think what it's going to do is give a lot of people in New Zealand jobs - those that are not getting them at the moment," he said.
"We do need more people in work in New Zealand, and we've been losing lots of people to Australia. So initially I think it's good.
"I think as we build our economy, which I think we will against Australia, then wages will rise. And if they keep having the dearth of a problem that they've got with mining, theirs will come down again," Sir Stephen said.
Career Retailer Wage
Mr Powell said the CRW decision is both a moral and business decision.
"It's part of an overall strategy that we're implementing at The Warehouse to completely change the business going forward," he said.
"And we're investing in our stores hugely, we're investing in our products, we've revamped our promotions."
However, Mr Powell said, retail is ultimately "a people business" and a few years ago the company started asking how it could have "the most engaged people" of any retail business in New Zealand.
Wages are part of that, and the career retailer wage came from that idea, he said.
Mr Powell said The Warehouse had asked itself: "How do we make retail a great career that people want to stay in, feel engaged? And if our team members in retail engage, they'll serve the customers better and that will help with growth."
The move is costing The Warehouse Group $2 million to $2.5 million a year.
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Source: http://tvnz.co.nz/business-news/union-challenges-warehouse-living-wage-claims-5526310?ref=rss
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