Thousands of Woolworths staff will benefit from a new collective agreement that guarantees a 6.8% pay increase over the next two years.
This agreement, reached with First Union, affects approximately 10,000 employees and comes after a challenging negotiation process.
“Under the new agreement, the team will receive a minimum pay rise of 3.3% in the first year, increasing the minimum hourly rate for supermarket team members up to $25.85, and 3.5% in the second year,” Woolworths Group said in a statement.
The agreement also introduced a multi-skilled hourly rate for team members trained to work across three or more departments. Under this agreement, these employees will earn a rate of $26.35 per hour.
Woolworths is also set to reward its team members with a special one-off payment before Christmas. Approximately 18,000 employees working in Woolworths supermarkets will receive this bonus, with those contracted for 32 hours or more per week getting $175, while those working fewer than 32 hours will receive $80.
Other benefits for employees include a 5% discount on all grocery items, 10% on fresh and own-brand products, two 10% discount days monthly, and special Everyday Rewards member offers.
Employees are also granted parental leave, coaching and support from Grace Papers, which offers coaching and resources specifically designed for employees under parental leave and returning to work, and a 24/7 employee mental health support service from Sonder.
“At Woolworths, we want to be an employer of choice and make sure our team can have long and fulfilling careers with us. That’s why we’re investing in our team’s learning with a multi-skilling programme that gives lifelong skills, more flexibility, and critical foundations for a highly rewarding retail career,” Woolworths New Zealand’s Managing Director, Spencer Sonn, said.
“We’re pleased to have landed this agreement in a place that fairly rewards our team for the work they do every day and balances the current economic climate. We would like to thank FIRST Union for representing team members’ views throughout this process and look forward to a constructive working relationship over the coming months and years,” he added.
The new agreement is effective immediately, with back pay applicable from July 1, 2024.