Chemist Warehouse workers win battle for better pay and conditions after two-week strike saw shortages of goods at stores

  • Workers at the discount store have been granted an 8.75 per cent pay rise
  • National Union of Workers said wages will increase by 18.75-22.5 over four years
  • Casual workers who went on strike will also be hired as permanent staff
  • NUW had demanded a pay rise of between 25-30 per cent  

Chemist Warehouse workers have won their battle for better pay after a two-week strike that saw shortages of goods at the discount chain.

The National Union of Workers announced on Thursday that employees have been granted an immediate raise of 8.75 per cent and will see an increase of 18.75 and 22.5 per cent in wages over the next four years.      

Casual workers who went on strike will also be hired as permanent staff and that clause will ensure other casuals will get the option to become permanent workers after six months.  

The agreement also includes training in gendered violence, severance pay on redundancy, and a 16 per cent labour hire increase. 

The NUW had demanded a pay rise of between 25 and 30 per cent and higher levels of job security, aiming for 70 per cent of workers to be full time as opposed to the current 25 per cent.   

The National Union of Workers announced employees have been granted a raise of 8.75 per cent and will see an increase of 18.75 and 22.5 per cent in wages over the next four years

The National Union of Workers announced employees have been granted a raise of 8.75 per cent and will see an increase of 18.75 and 22.5 per cent in wages over the next four years

The deal has been considered a victory by both parties after the strike had targeted the company's major distribution centres in Preston and Somerton in Victoria.

'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,' NUW National Secretary Tim Kennedy said.  

Chemist Warehouse director Damien Gance said the deal was a 'great outcome.' 

'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,' he said in a join statement.  

Workers at the Chemist Warehouse distribution centres had been paid $24 an hour, which was far less than the company's competitors, according to the NUW.

The pay rise reflects an amount that's three times more than the growth of wages in Australia in 2018. 

NUW was successful in its efforts for Chemist Warehouse but now reportedly faces another strike over wages for courier service DHL, according to the Brisbane Times.

The strike caused shortages at stores as photos from The Sunday Age revealed empty shelves and low stock of goods last week. 

Mr Gance, however, claimed the stock of good had not been affected.  

The National Union of Workers had said the chain would struggle to meet the weight of customer demand were workers to go through with the strike.

'Our members at Chemist Warehouse are paid 25 per cent less than industry competitors and yet the owners are worth over a billion dollars,' union national secretary Tim Kennedy said.

The deal has been considered a victory by both parties after the strike had targeted the company's major distribution centres in Preston and Somerton in Victoria

The deal has been considered a victory by both parties after the strike had targeted the company's major distribution centres in Preston and Somerton in Victoria

He said the union's members were responsible for the distribution of more than a million items every week.  

Union delegate Husain Alqatari, who is also a worker at one of the warehouses, had said casual workers had to 'fight like animals' to earn shifts with the company.

'You have to work fast - if you don't reach your target you don't get your shift,' he said. 

The strike followed Chemist Warehouse being ordered to back-pay more than $3.5million to its workers in 2016 after the Fair Work Ombudsman uncovered it had not paid its workers for compulsory online training they did in their own time. 

As many as 5976 employees, making up around two-thirds of their were force, were given $600 each on average following the ombudsman audit. 

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Chemist Warehouse workers win battle for better pay after two-week strike

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