Workers First Union has ratified a new two-year collective agreement with Kmart workers that includes a minimum living wage after six months’ service, union-only bonuses, and improved employment pathways.
The new deal, which takes effect in September 2025, will see workers earning a living wage of $28.95 per hour after six months on the job.
This will rise again in 2026 to match the updated living wage rate for that year.
The agreement also provides union-only bonuses of $500 for full-time workers, $350 for part-time staff, and $200 for casual employees, alongside increases to safety and medical footwear reimbursements.
Of the 1,110 union members at Kmart, 96 percent voted in favour of the agreement during three weeks of store-by-store meetings.
Workers First Union Deputy Secretary (Retail) Rudd Hughes said the new deal sets a benchmark for the retail industry.
“We’re extremely proud of our Kmart bargaining team and hopeful that this new agreement sets a standard in the retail industry that other big brands are paying attention to,” Hughes said.
“We started negotiations with the company talking about the CPI and clawbacks of previous entitlements, but due to the efforts of our dedicated group of Kmart workers on the bargaining team, we’ve ended with an industry-leading agreement that includes a progressive living wage for two years and a generous union-only bonus.”
Tarsh Sullivan, a coordinator from Kmart Te Rapa who was part of the bargaining team, described the agreement as a “huge win” for workers.
“The union-only bonus is a big deal for a lot of the younger workers because it shows them why we’re in a union and what you can do when you stick together,” Sullivan said.
“We were also really happy to lock in a better pathway for casual workers to get into full-time employment, because you can get stuck there in retail jobs sometimes. The future is unpredictable, especially under this Government. I’m happy that we’re making progress and moving forward with this deal.”
The union hopes the Kmart deal will pressure other major retailers, including Farmers, The Warehouse, and Briscoes, to lift wages.
“Many of the other big retailers still don’t believe their staff are worth a living wage,” Hughes said. “But Kmart has been thriving as a business because their staff are fairly paid and feel more motivated and valued by their employer. We need to start measuring company success differently and move on from the infinite growth mentality. We should be asking companies more about what their staff earn, not their CEO.
