2006 Progressive Enterprises dispute

Labor dispute in New Zealand February 2022July 2024 thumb|Locked out workers at an Auckland picket. The 2006 Progressive Enterprises dispute was an industrial dispute between New Zealand supermarket company Progressive Enterprises and employees represented by the National Distribution Union and the EPMU. On 25 August 2006, over 500 employees at Progressive's four distribution centres (in Auckland, Palmerston North and Christchurch) began a 48-hour strike supporting a demand for a national collective agreement involving an eight percent wage increase and pay parity between the four centres. On 26 August 2006 the company locked out the strikers indefinitely, suspending operations at its distribution centres, with suppliers delivering goods directly to the supermarkets and also setting up amateur small scale distribution centres in car parks of Countdown supermarkets.Progressive Forced to Suspend Grocery Distribution Centre Operations Progressive Enterprises Limited Press Release http://www.progressive.co.nz/news_and_publications/press_releases/7483ae96-c114-4a5f-9438-4d7ca34a36e9.asp 28 August 2006 8 September 2006 https://web.archive.org/web/20060928223137/http://www.progressive.co.nz/news_and_publications/press_releases/7483ae96-c114-4a5f-9438-4d7ca34a36e9.asp 28 September 2006 dead The dispute was resolved on 21 September 2006 when Progressive Enterprises agreed to pay parity and a 4.5% wage increase. Progressive pay dispute resolved One News http://tvnz.co.nz/view/page/488120/833410 21 September 2006 21 September 2006 Background In 2003 Progressive closed its Auckland and Christchurch distribution centers and rehired the redundant workers on lower pay,About the Campaign Shelfrespect.org http://www.shelfrespect.org/2/about 8 September 2006 https://web.archive.org/web/20061003231139/http://shelfrespect.org/2/about 3 October 2006 dead the closures ended the former national agreement and resulted in a NZ$2.50 per hour pay gap between the four sites.Striking Distribution Workers Locked Out Indymedia Aotearoa http://indymedia.org.nz/newswire/display/67581/index.php 8 September 2006 https://web.archive.org/web/20060922063038/http://indymedia.org.nz/newswire/display/67581/index.php 22 September 2006 dead On 25 November 2005 Progressive Enterprises was bought by the Australian Woolworths conglomerate, the country's largest private employer. On Friday 25 August 2006, workers at the Progressive Enterprises distribution centres began a 48 hour long strike, as well as working to rule and a ban on overtime, in support of a nationwide collective agreement with equal pay rates. and existing allowances combined into a site allowance of up to $2.50, an 8% pay rise and an extra week service leave.Retrogressive Progressive TNC https://www.converge.org.nz/watchdog/13/02.htm www.converge.org.nz 31 July 2026 On the 28th, workers voted unanimously to extend the strike. Following the strike the company locked out the workers indefinitely, calling the union demands unrealistic. Economic effects On the 11th day of the lock out TVNZ reported that gaps on the shelves at Progressive owned supermarkets were becoming the norm. The company stated that it was confident it could keep most shelves stocked, though most customers interviewed by ONE News had noticed gaps. More pressure for Progressive TVNZ http://tvnz.co.nz/view/page/411415/825407 4 September 2006 10 September 2006 That same day a spokesperson for the company told the Gisborne Herald that there were certainly empty gaps on shelves at most supermarkets, although this was not having an impact on sales, with customers substituting out of stock items for different brands.Gisborne shelves showing effects of national strike Gisborne Herald http://www.gisborneherald.co.nz/article.asp?aid=6349&iid=505&sud=27 4 September 2006 10 September 2006 https://web.archive.org/web/20060928192101/http://www.gisborneherald.co.nz/article.asp?aid=6349&iid=505&sud=27 28 September 2006 dead One National Distribution Union employee has claimed that the company was paying more than three times what it would normally pay for distribution during the lock-out. Progressive distribution workers – daring to struggle, daring to win The Spark https://www.marxists.org/history/erol/new-zealand/spark-200.pdf 27 May 2008 As the dispute entered its third week the locked out workers started to feel the effects of missing three pay cheques; one locked out worker, Virginia Watson, told TVNZ that she was now relying on donations to feed her kids: "It's really starting to hurt. The kids haven't had a decent meat and vegetable meal to eat for over a week now, been pretty hard for them." Progressive workers win backing TVNZ http://tvnz.co.nz/view/page/410965/831361 16 September 2006 17 September 2006 Progressive Enterprises estimated that the workers had collectively lost over $2 million in wages during the dispute. Lockout on verge of a settlement Stuff http://stuff.co.nz/stuff/0,2106,3803731a11,00.html https://web.archive.org/web/20070930032952/http://stuff.co.nz/stuff/0,2106,3803731a11,00.html dead 30 September 2007 21 September 2006 20 September 2006 On 24 October The Press reported that the dispute "took a toll on Australian parent company Woolworths, which reported flat sales in New Zealand for the first quarter"'Lockout proves costly' The Press Thursday, 24 October 2006 C1 On the picket lines right|200px|thumb|Picketing workers in Christchurch stopping a Linfox truck Progressive Enterprises workers, along with supporters, kept up continuous around-the-clock pickets at the distribution centres, as well as going out on "flying pickets" targeting the temporary distribution points set up by the company at supermarkets and distribution firms where people are handling goods that would normally be handled at the distribution centers. Progressive distribution workers Indymedia Aotearoa http://indymedia.org.nz/newswire/display/71627/index.php 12 September 2006 4 October 2006 dead https://web.archive.org/web/20070927211215/http://indymedia.org.nz/newswire/display/71627/index.php 27 September 2007 at the Palmerston North distribution centre. A permanent presence was set up at the site, with tents, a power generator, fridge, barbecue and portaloo. A representative from the Postal Workers Union added a letterbox to the campsite, saying that postal workers would deliver messages of solidarity sent directly to the picketers.Locked-out workers force company back-down Green Left Weekly http://www.greenleft.org.au/back/2006/685/685p21.htm 4 October 2006 https://web.archive.org/web/20061007210628/http://www.greenleft.org.au/back/2006/685/685p21.htm 7 October 2006 dead Numerous arrests were made during the dispute, on 28 August union negotiator Stan Renwick was arrested; Union leader arrested at picket TVNZ http://tvnz.co.nz/view/page/425823/821959 28 August 2006 4 October 2006 in Lower Hutt three picketers who were not employed by Progressive Enterprises were arrested at a Countdown supermarket after a stand off with a truck driver. Police called to picket line Newstalk ZB http://www.newstalkzb.co.nz/newsdetail1.asp?storyID=103998 19 September 2006 4 October 2006 dead https://web.archive.org/web/20070929122855/http://www.newstalkzb.co.nz/newsdetail1.asp?storyID=103998 29 September 2007 During the third week of the dispute ten people were arrested on the picket line in Auckland after truck tires were punctured during a clash between picketers and a moving truck; National Distribution Union organiser Ingrid Beckers, who was one of the people arrested, told the New Zealand Herald that the truck had driven dangerously through the picket line and that the driver unwound his window and swung a metal pole around. According to Senior Sergeant Cornell Kluessien "Some were charged with disorderly behaviour, some with obstructing police and some with obstructing a roadway." Ten picketers arrested after truck tyres are punctured The New Zealand Herald http://subs.nzherald.co.nz/organisation/story.cfm?o_id=600624&ObjectID=10400306 8 September 2006 4 October 2006 https://archive.today/20130222230011/http://subs.nzherald.co.nz/organisation/story.cfm?o_id=600624&ObjectID=10400306 22 February 2013 dead Reactions Union movement At a special affiliates meeting of the New Zealand Council of Trade Unions, an organisation representing 350,000 New Zealand union members, a resolution was passed condemning the lock out and supporting the claims of distribution workers, resolving "That each union, separately and collectively, will continue to take every possible action to support the NDU, the EPMU and their distribution worker members to achieve a fair settlement of their dispute". CTU Special Meeting NZCTU http://union.org.nz/news/701.html 8 September 2006 11 September 2006 dead https://web.archive.org/web/20061005172033/http://www.union.org.nz/news/701.html 5 October 2006 The Maritime Union of New Zealand issued a statement pledging "financial, practical and moral support for the workers and their pickets"Maritime Union backs distribution workers battle Scoop.co.nz https://www.scoop.co.nz/stories/PO0609/S00050.htm 6 September 2006 11 September 2006 and threatened to stop unloading supermarket goods at the wharves. Rain no deterrent for locked out staff TVNZ http://tvnz.co.nz/view/page/411749/827841 9 September 2006 11 September 2006 They also worked to gain international support for the locked out workers, including from the International Transport Workers' Federation, which represents 4,500,000 transport workers in 142 countries. Maritime union members voted to each contribute one hour of pay to the locked out worker fund each week until the dispute was settled. Maritime Union steps up support of locked out workers Indymedia Aotearoa http://indymedia.org.nz/newswire/display/71625/index.php 12 September 2006 12 September 2006 dead https://web.archive.org/web/20070927211129/http://indymedia.org.nz/newswire/display/71625/index.php 27 September 2007 Over $425,000 Christmas bonus for Progressive workers EPMU News http://www.epmu.org.nz/SITE_Default/news/union_news/2006_12_15_Progressive.asp 15 December 2006 16 December 2006 dead https://web.archive.org/web/20070928044208/http://www.epmu.org.nz/SITE_Default/news/union_news/2006_12_15_Progressive.asp 28 September 2007 was raised by the unions to support the locked out workers; a big part of this was $30,000 a week from one Auckland workplace with 1500 unionised staff Pay pledge to Progressive workers Stuff http://www.stuff.co.nz/stuff/0,2106,3800054a11,00.html 17 September 2006 12 October 2006 30 September 2007 https://web.archive.org/web/20070930022314/http://www.stuff.co.nz/stuff/0,2106,3800054a11,00.html dead and large donations from Australian unions the Maritime Union of Australia, the Transport Workers' Union and the Rail Tram and Bus Union. On 18 September representatives of these unions travelled to New Zealand to join the picket lines. Aussie unions join picket line in Auckland Stuff http://stuff.co.nz/stuff/0,2106,3800063a10,00.html https://web.archive.org/web/20070930032815/http://stuff.co.nz/stuff/0,2106,3800063a10,00.html dead 30 September 2007 18 September 2006 17 September 2006 At an executive board meeting held in Singapore on 14–16 September, the ICFTU-APRO, part of the International Confederation of Free Trade Unions representing 30 million workers in the Asia-Pacific region condemned what it saw as "This heavy-handed pressure by a major corporate employer to force low-paid workers to relinquish their right to bargain collectively as guaranteed by ILO Conventions and New Zealand law." Pacific Union Condemns Progressive Enterprises Scoop.co.nz https://www.scoop.co.nz/stories/PO0609/S00185.htm 16 September 2006 17 September 2006 Business community Business lobby groups Business New Zealand and the Employers and Manufacturers Association both expressed concern that the dispute reflected a new style of ideological union claims, such as the claim for a national collective agreement. Employers and Manufacturers Associations Chief Executive Alasdair Thompson told National Radio "If they were to pull this off, then it could well lead to other situations where other employers who operate nationally see this sort of thing tried out against them."Protracted dispute making business leaders nervous Stuff http://www.stuff.co.nz/stuff/0,2106,3793274a11,00.html 11 September 2006 11 September 2006 Business New Zealand chief executive Phil O'Reilly stated "I think the Progressive dispute is a very public way station of a trend towards more of this. The claim's not just about money, it's about structural stuff and bargaining issues that employers will find quite difficult to agree to," and claimed that if unions continue this approach to negotiations it would undoubtedly lead to more industrial disputes. Employers fear union power push Stuff http://www.stuff.co.nz/stuff/0,2106,3792553a13,00.html 10 September 2006 11 September 2006 An editorial in the Nelson Mail called the dispute "a disturbing reminder of the past, when unions had the power to shut down an entire industry – and sometimes used it." Not progressive Nelson Mail Stuff http://stuff.co.nz/stuff/nelsonmail/0,2106,3794927a6508,00.html https://web.archive.org/web/20070930023559/http://stuff.co.nz/stuff/nelsonmail/0,2106,3794927a6508,00.html dead 30 September 2007 12 September 2006 17 September 2006 Political response The government did not make any official statement about the dispute, however one individual cabinet minister, Steve Maharey, whose electorate includes the Palmerston North distribution centre made a token donation of $200 to the unions locked out worker fund. EPMU leader Andrew Little challenged all members of parliament to match or beat this donation, though none did. International pressure to be put on Progressive Enterprises Stuff http://www.stuff.co.nz/stuff/0,2106,3790915a11,00.html 8 September 2006 12 September 2006 The opposition National Party put out a press release critical of the workers, mistakenly calling the industrial dispute a 'strike' when it was actually a lockout.http://national.org.nz/Article.aspx?ArticleID=7911 Unions drag everyone down – Mapp 16 October 2006 https://web.archive.org/web/20071026135046/http://national.org.nz/Article.aspx?ArticleID=7911 26 October 2007 dead The Green Party urged the public to boycott Progressive Enterprises supermarkets until the dispute was resolved. The party's industrial relations spokesperson Sue Bradford stated in a press release "The Green Party is totally behind the locked-out workers. The right to form national collective agreements is a basic one which workers in many other industries have successfully attained. It is appalling to see Progressive Enterprises applying such brute economic force to prevent its workers from negotiating one," Boycott of Progressive Enterprises urged Green Party press release http://www.greens.org.nz/searchdocs/PR10134.html 6 September 2006 12 September 2006 dead https://web.archive.org/web/20070926223316/http://www.greens.org.nz/searchdocs/PR10134.html 26 September 2007 The Alliance supported the locked out workers by donating $500 and encouraging members of the party to match that donation. It also criticised the Labour government for remaining silent during the dispute. Alliance says 'the money is there' – Progressives should pay up Indymedia Aotearoa http://indymedia.org.nz/newswire/display/71570/index.php 6 September 2006 12 September 2006 dead https://web.archive.org/web/20070927211136/http://indymedia.org.nz/newswire/display/71570/index.php 27 September 2007 The Workers Party produced and distributed a bulletin supporting the locked out workers, and encouraging the public to donate to the locked out worker fund. Organising to Win Workers Party of New Zealand bulletin http://workerspartynz.files.wordpress.com/2008/05/organisingtowin.pdf 27 May 2008 Socialist Worker raised $250 at a community picket of Foodtown Onehunga, and its activists in the Solidarity Union walked the picket line most days during the strike.May 2007 The Workers' Charter newspaper published extensive coverage in its pages, also helping to raise the need for workers to challenge the ERA's anti strike laws and deliver illegal solidarity strike action to support those locked out.May 2007 Settlement Both sides of the dispute claimed victory when an agreement was reached between the company and the two unions representing its employees on 21 September. The majority of workers in Auckland and Palmerston North voted to accept the company's offer, however, the vote in Christchurch was close. Both sides in supermarket industrial dispute claim victory Radio New Zealand http://www.radionz.co.nz/news/latest/200609212007/both_sides_in_supermarket_industrial_dispute_claim_victory 21 September 2006 28 September 2006 dead https://web.archive.org/web/20120205082026/http://www.radionz.co.nz/news/latest/200609212007/both_sides_in_supermarket_industrial_dispute_claim_victory 5 February 2012 The unions did not achieve one collective agreement for all three centres but NDU secretary Laila Harre said the terms were the same; "The most important thing for these workers was using their national bargaining power to deliver equal pay for equal work and they've done a stunning job of that," Locked out workers reach settlement Stuff http://www.stuff.co.nz/stuff/0,2106,3804741a10,00.html 21 September 2006 28 September 2006 The agreement allowed for a 4.5% pay rise and pay parity between the four distribution centres by the end of 2008. Different sites' shift and roster systems were preserved but the system of allowances was streamlined to comprise a single base rate. The company also made available interest free loans of up to $1,000 to union members affected by the lock-out.Progressive and NDU reach agreement National Business Review http://www.nbr.co.nz/home/column_article.asp?id=16238&cid=4&cname=Business+Today 21 September 2006 28 September 2006 https://web.archive.org/web/20060928185009/http://www.nbr.co.nz/home/column_article.asp?id=16238&cid=4&cname=Business%20Today 28 September 2006 dead After the dispute In Christchurch a small group of workers refused to go back to work the day after a settlement was reached, instead going back to work the following Monday. NDU delegate Karl Skivington told National Radio that 49 per cent of workers there voted against accepting the deal from Progressive, and that many of them were "still angry" and in no mood to rush back to work for employers who had locked them out. Some distribution workers to stay away until Monday Stuff http://www.stuff.co.nz/stuff/0,2106,3804898a11,00.html 22 September 2006 12 October 2006 30 September 2007 https://web.archive.org/web/20070930035113/http://www.stuff.co.nz/stuff/0,2106,3804898a11,00.html dead On 12 October The Press reported that Marty Hamnett who had been CEO of Progressive Enterprises during the dispute, was leaving his position to "return to work in Australia for family reasons""Hamnett to go" The Press Thursday, 12 October 2006 B4 Negotiations between Progressive Enterprises employees at the Southmore Meat Processing Plant represented by The Meat Workers Union continued after a settlement was reached for the workers at distribution centers, as of 20 October union negotiators had just come out of mediation with a deal to take back to the membership to be voted on. Meat Workers Picket Progressive Enterprises EPMU News http://www.epmu.org.nz/SITE_Default/news/union_news/2006_10_20_Meat.asp 20 October 2006 21 October 2006 dead https://web.archive.org/web/20070928044159/http://www.epmu.org.nz/SITE_Default/news/union_news/2006_10_20_Meat.asp 28 September 2007 At the end of the year, each of the workers received a $100 Christmas bonus from their union, funded from the donations that came in after the dispute ended. On 21 March 2007 Progressive Enterprises was awarded the 2006 Roger Award, an award given by the organisations Campaign Against Foreign Control of Aotearoa and GATT Watchdog for the worst transnational corporation Operating in New Zealand. A spokesperson for CAFCA and GATT Watchdog stated: It is no surprise that Progressive won the Roger because of that 6 September national lockout of its supermarket distribution centre workers, an all-out attack on its own workers, a naked attempt to smash the unions representing them and to starve those lowpaid workers into submission.Progressive Enterprises Wins Roger Award Scoop.co.nz http://www.scoop.co.nz/stories/PO0703/S00264.htm 25 March 2007 https://web.archive.org/web/20070326082353/http://www.scoop.co.nz/stories/PO0703/S00264.htm 26 March 2007 live See also Organized labour Progressive Enterprises National Distribution Union EPMU Lockout (industry) Notes External links Video of a picket in Dunedin Union song about the dispute by Wellington musician Don Franks Progressive Lockout 2006 – I Was There Poem written by one of the locked out workers after the dispute EPMU website NDU website Progressive Enterprises Dispute, 2006 Category:Labour disputes in New Zealand Progressive Enterprises Category:Woolworths Group (Australia) Category:Retailing in New Zealand