Because workers are worth it – First Union


Union members at one of L’Oréal’s distribution centres have won their pay battle …and more.

L’Oréal is showing businesses how it’s done in a workers world dominated by the business bottom dollar after workers at its distribution centre in Mangere won the right to be paid a Living Wage following the threat of strike action.

Strike action was proposed after it was revealed one of their colleagues, Jones Ioane, had been sleeping in his car due to high Auckland costs and low pay. Employees were already frustrated and struggling with the company’s pay rates, but the story of their colleague swung them into action. 

Now L’Oréal’s not only agreed to substantially lift pay rates to the Living Wage, but has also agreed to new arrangements on labour hire workers.

Until now L’Oréal’s workers were paid rates ranging from $15.75 per hour for new starts to $18.71 for more senior workers. There were also a number of long-term labour-hire workers still on minimum wage despite having worked there for several years and the company has now committed to converting employees on labour hire contracts to permanent jobs.

Following the proposed strike action, L’Oréal’s announced a transition to make the new minimum pay rate the new Living Wage of $20.55. The move represents over a $4 per hour increase for many of the workers, on a 40 hour week, that’s $160 more towards these households. 

Members voted last night (10/04/18) to ratify the amazingly good deal that recognises the value of workers, and the value of skilled workers.

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FIRST Union’s Transport, Logistics and Manufacturing Divisional Secretary Jared Abbott says the living wage means families aren’t struggling to make ends meet which significantly improves their mental and physical wellbeing.

“This is about companies realising that employees are people with the need for money to not only pay for life’s bills, but to enable them to have some down time with their families. This is about general common decency. We are thankful for our members who had the courage to say enough is enough, and to L’Oréal for responding in a humane way.”