File photo. Photo: RNZ / Cole Eastham-Farrelly
Kmart workers say a new union agreement is a "huge win" for them.
Kmart and Workers First Union have signed a two-year pay deal that will mean staff who have been employed for six months will be entitled to the new living wage of $28.95 from September 2025, increasing to the new living wage the following year.
Union members will also get bonuses, of $500 for full-time workers, $350 for part-time workers and $200 for casual workers.
The company will provide an improved pathway from casual to permanent employment, and an increase to safety and medical footwear reimbursements.
Rudd Hughes, deputy secretary for retail at Workers First, said he believed the new agreement put Kmart workers among the highest-paid retail chain workers in the country.
"We're extremely proud of our Kmart bargaining team and hopeful that this new agreement sets a standard in the retail industry that other big brands are paying attention to.
"We started negotiations with the company talking about the CPI and 'clawbacks' of previous entitlements, but due to the efforts of our dedicated group of Kmart workers on the bargaining team, we've ended with an industry-leading agreement that includes a progressive living wage for two years and a generous union-only bonus."
Tarsh Sullivan, a union coordinator from Kmart Te Rapa said it was a huge win for staff.
"I'm happy that we're making progress and moving forward with this deal - we know it's not the same for all retail workers at the moment."
Hughes said the Kmart deal sent a clear message to other big-box retailers.
"Many of the other big retailers still don't believe their staff are worth a living wage," he said.
"But Kmart has been thriving as a business because their staff are fairly paid and feel more motivated and valued by their employer."
Kmart has been approached for comment.
Careers NZ said retail sales staff generally earn about $48,000 a year and start on minimum wage.
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