Union workers at upmarket supermarket chain Farro Fresh are threatening to go on strike over the company’s latest pay offer and plans to introduce a 90-day trial period for all new workers.
The company has seven boutique Auckland supermarkets and workers serve the city’s “elite” while being among the “verylowest-paid in the industry”, according to the union.
The company says it is surprised and disappointed by the strike notices and is honouring the collective bargaining process.
First Union organiser Nicholas Mayne said Farro’s current “take it or leave it” offer to union members would mean the majority of Farro employees would be earning between the minimum wage of $23.15 and $24.20 per hour.
“With the Government only increasing the minimum wage this year by 2% and household living costs growing by 6.2%, it’s crucial that employers and employees negotiate pay increases that keep workers out of poverty.”
He said Farro should benchmark its pay against ethical standards such as the living wage, not the minimum wage. The current living wage is $26 an hour.
Farro has stores in Grey Lynn, Epsom, Mt Eden, Smales Farm, Mairangi Bay, Mt Wellington and Ōrākei.
Mayne said Farro Fresh was also attempting to introduce a 90-day trial period into its employment practices.
“Farro already has a high turnover of employees because their pay and conditions do not incentivise workers to stay.
“Eliminating new employees who do not fit the ‘values’ Farro Fresh wants will not improve anything if those workers prefer other retailers with better terms and conditions.”
Farro Fresh chief executive Craig Williams said it had a small number of team members who belonged to First Union.
“These members are covered by a collective employment agreement. This has been in place since May 2023. We honour the collective bargaining process and are committed to reaching a ratified agreement that respects our employees’ rights, aligns with our values, and upholds our reputation as an employer of choice.
“We were surprised and disappointed by the strike notices from First Union, especially given the early stage of our negotiations. As the smallest player in the market, operating with smaller margins than the supermarket duopoly, this unexpected development adds a challenging dynamic to the upcoming mediated bargaining.”
Williams said its brand was built on “delivering an exceptional customer experience and creating a great place to work”.
“In 2023, we introduced Farro Pathways, a framework designed to help our retail team members build a career with us. This initiative includes tools for continuous learning, development, and recognition, ensuring that our team members are rewarded for their growth and contributions to our world-class customer experience.”
Williams said the current economic landscape posed significant challenges for independent retailers such as Farro.
“Recent closures of other independents such as Supie and Huckleberry highlight the difficulties of surviving in a market dominated by larger players. With rising operational costs and the broader issues of recession, inflation, and a cost-of-living crisis, we remain committed to sustaining our business and supporting our community.”
Mayne said workers were due to attend a mediation session with the company at the end of June and in the meantime union members would be hosting ad-hoc leafleting campaigns outside Farro Fresh stores so the public can consider the treatment of workers before doing their grocery shopping.
“They may not be able to compete on price with the supermarket duopoly, but they can certainly live up to their own claims of being a progressive employer that cares for the wellbeing of their staff.”
