Smiths City Group will make sure its 541 workers are all earning at least the living wage from October and will let employees use a day of sick leave every year for their own well-being as the retailer works harder to get onside with its staff.
This announcement comes after the retailer found itself at odds with some sales staff over attending 15-minute 'voluntary' morning meetings and was ordered to reimburse underpaid employees for six years of back pay. Smiths City accepted the ruling and took a $1.5 million provision to cover the bill in its latest accounts.
The Christchurch-based company marked its 100th anniversary with the new initiatives and said it will also give all staff an extra day of annual leave this calendar year. The new pay rates won't have a material impact on Smiths City's earnings and the retailer isn't committing to automatically keeping pace with future increases in the living wage estimate, which it said it will have to gauge against the business climate and capital needs.
The company spent $32.4 million on its wage bill in the April 2017 year, implying an average salary of about $54,812, which equates to an hourly wage of $26.36 based on a 40-hour week. The living wage is currently calculated at $20.55, or $42,744 per annum, by the New Zealand Family Centre Social Policy Unit. Government data show the average hourly earnings in retail was $21.80 as at March 30, the second lowest paid industry behind accommodation and food services and about 70 per cent of the average wage of $31.03 across all sectors.
"We want our staff to be enthusiastic and excited about their work; to feel that they are benefitting personally from working at Smiths City; and that they are learning new skills and gaining the experience to develop an enduring and prosperous career with the organisation and in the retail sector," chief executive Roy Campbell said in a statement. "Fundamental to the development of this culture is paying Smiths City people fairly for a fair day's work."
