Chemist Warehouse workers win pay rises after two weeks of strike action

Chemist Warehouse distribution centre workers have won huge pay rises after two weeks of strike action.

National Union of Workers members protest at the Chemist Warehouse distribution centre earlier this month.

Workers at Chemist Warehouse distribution centres have won pay rises of up to 22.5 per cent over four years, with striking casual labour hire workers securing permanent jobs.

The workers in Victoria and Queensland voted today to end two weeks of strike action after endorsing the deal that delivers an 8.75 per cent pay rise in two weeks, and wages increases totalling 18.75 per cent over four years.

Fork lift drivers and trainers will get pay rises totalling 22.5 per cent.

Chemist Warehouse director Damien Gance and National Union of Workers national secretary Tim Kennedy, released a joint statement welcoming the agreement.

“We see this as a great outcome for the business and our team,’’ Mr Gance said. “Our people are critical to our success, and we have been able to achieve a balance between rewarding our current team and being able to continue to grow and offer more job opportunities.”

Mr Kennedy said “at a time of serious wage stagnation, it’s great to see workers in their union collectively bargain for wage increases, secure jobs and respect at work”.

While labour hire workers who went on strike will get immediate permanency, those who worked through the industrial action will get permanency after six months.

The workers were being paid about $24 an hour.

Anthony Forsyth, professor of workplace law at Melbourne’s RMIT University, said the union, through the new agreement, had “made huge inroads into a major company’s extensive use of labour hire”.

“In many sectors of the economy, including warehousing, logistics and manufacturing, the original intention of labour hire — to provide a supplement to the core workforce in response to business needs — has been usurped by the engagement of large numbers of long-term, labour hire casuals,’’ he said.

“The Chemist Warehouse agreement is an important clawing back of that misuse of labour hire.”

He said the agreement showed traditional industrial tools, such as strikes and protests were still effective, especially when combined with organising and communication through social media.