The Warehouse Group has announced plans yesterday to implement a 'career retailer wage' to boost capability in the retail sector.
The first stage of the two-stage strategy is due to come into effect on August 1 this year, with stage two beginning a year later.
Qualifying members could expect a wage between $18.50 and $20 an hour, an average of $50 to $100 extra on average per week. The pay increases will affect trained, full-time staff with more than three years' experience.
Group Chief Executive Mark Powell said, “while this will cost the Group an additional $2.0 million to $2.5 million in each of the 2014 and 2015 financial years, the impact on company profits is expected to be less due to increased team engagement, lower team turnover, improved sales and higher productivity.”
The New Zealand Living Wage campaign influenced the company's strategy.
"We took account of the analysis done by the Living Wage campaign, which The First Union took part in, regarding the level of career pay rates required to reasonably support a household," said Powell.
The Career Retailer Wage strategy will be implemented in all wholly owned companies in the Group, which includes The Warehouse, Warehouse Stationery and the recently acquired Noel Leeming.