Cotton On workers laud new collective

Cotton On faced a public backlash with its plan to have employees individually negotiate a tea and lunch break. Photo / NZ Herald

Workers from the Cotton On distribution centre say their newly ratified collective agreement gives substantial improvements in wages and working conditions.

The company earlier faced a public backlash with its plan to have employees individually negotiate a tea and lunch break.

It followed the introduction in October last year of a law that took away the legal right to a tea break. The Employment Relations Amendment Bill also weakened collective bargaining.

Cotton On last month backed down from that plan and maintained paid tea breaks for its employees.

First Union general secretary Robert Reid said this morning workers from the Auckland Cotton On distribution centre ratified the first ever collective agreement.

"Cotton On's Chief Financial officer arrived from Australia for the negotiations and we managed to settle on substantial improvements to wages and working conditions," Mr Reid said.

"Not only were rest and meal breaks restored, but wages were lifted from levels around the minimum wage to levels approaching the living wage.

"The new collective agreement also includes a redundancy package and penal rates for overtime work."