IKEA’s first Auckland store opens on December 4th
photograph: Marika Kabaji / RNZ

A trade union says New Zealand retailers need to “step up” to keep up with the wages and conditions offered by international companies coming to New Zealand.

IKEA said Wednesday it is hiring 85 additional staff for logistics and food service, and adding night shifts to replenish inventory.

This brings the total number of employees in New Zealand to 561.

We also pay staff $29 for the entry level, which increases to $31 for the next level.

You can also take advantage of our Transportation Assistance Program, which offers 75% off commuting costs, five weeks of vacation, meal assistance, employee discounts, and more.

“The response from New Zealanders since we opened has been incredible and we’re proud to be growing our team to meet that demand while staying true to our values,” New Zealander and Culture Manager Lauren Clegg said.

“Opening a new market brings its own challenges and learnings for our teams. We are committed to listening, improving and supporting our colleagues along the way. By investing in competitive salaries, meaningful benefits and everyday support, we want people to choose to grow their careers with us as we continue to build IKEA in Aotearoa together.”

Workers First union retail secretary Rudd Hughes said Ikea’s proposal was a good one.

The union plans to begin collective bargaining for IKEA employees next week.

But he said the union had been negotiating with Ikea before the store opened.

“They’ve made it clear that their wages will be at least a living wage. So they started out not being a living wage, but now they’re a living wage…We’re going to look at improving that, but we’re going to look at other conditions, not just wages.”

Costco and Kmart also offered more than a living wage, he said.

“Other New Zealand-based brands such as Woolworths, Foodstuff, Briscoes and Warehouse, as well as Australian-based brands, have all lagged behind, and are far behind.

“Kiwi companies need to actually go to market and pay their employees the amount they need to actually live in society.”

He said IKEA’s adoption will also have an impact on other retailers.

“They’re an important player in the economy and I’m sure they’ll probably expand as well. We welcome that. We also welcome the way they’ve worked with us to build relationships with trade unions, which is not that common.”

He said the union would use cases like Ikea as a basis for negotiations with other employers.

“The living wage should be a minimum for all workers in this country, but especially retail workers, of whom there are large numbers.

“Why shouldn’t they have a living wage so that they can participate in society and be part of society and not have to save and save?”

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