Relief for locked-out supermarket workers

Laila Harre said workers would be pleased to get a pay cheque next week.

Victories were claimed today by both the union representing locked-out supermarket distribution workers and their employers after a bitter month-long pay dispute finally ended.

The National Distribution Union, representing over 500 workers, won pay parity across the three distribution centres in Auckland, Palmerston North and Christchurch for supermarkets owned by Australian company Progressive Enterprises.

The union did not get its wish of one collective agreement for all three centres but its secretary Laila Harre said the terms were the same.

"It's not a major issue from our point of view. This is a national collective agreement in all but name.

"The most important thing for these workers was using their national bargaining power to deliver equal pay for equal work and they've done a stunning job of that," she said.

Progressive managing director Marty Hamnett said it was not logical to agree to one collective when there were operational disparities between the three sites.

He said the pay rise amounted to an average of 4.5 per cent across the board each year for a term of three years and that getting the three-year term was an important achievement.

"It means we can really start forward planning in a clear and proactive way, which is very difficult to do if you've got a 12 month agreement."

Ms Harre said the dispute had been taxing on the workers and it would take a long time before trust was established with their employer.

"Less than a year after coming into New Zealand this company has provoked the biggest industrial dispute of our generation and it will take time to heal those wounds," she said.

"The company's conduct has been disgraceful to its workers over the last four weeks."

She said Progressive had brought "enormous damage" to its own bottom line and devastation to the bottom line of its distribution staff.

"They have had to concede on the one thing that they said they would not deliver in bargaining, and that is equal pay for equal work across the three sites."

Mr Hamnett said while it was concerning not having been able to deliver all its products to retailers, he was surprised how well businesses held up in support of the suppliers.

Progressive employed over 18,000 staff and in real terms the 500 or so workers in question was a small percentage.

"They were more or less holding the other 18,000 to ransom. So I think you'll find the huge percentage of staff who don't work in the warehouses probably are saying it's about time they went back to work."

Ms Harre said the workers would be pleased to get a pay cheque and pay rise next week.

"There will be some back pay in it for them and the company has agreed to forward an interest-free thousand dollar loan which will help them get back on their feet.

"It's a great victory for these workers and they can go back in with the head held high."

Council of Trade Unions president Ross Wilson said Progressive had underestimated the huge level of public support and its tactics were cynical and brutal.

"Progressive pursued a deliberate strategy of starving into submission vulnerable workers who were using the proper legal processes to improve their wages.

"It has highlighted a fundamental weakness in our employment laws," Mr Wilson said.

- NZPA