By KARYN SCHERER
A former manager for The Warehouse Group has admitted setting up a no-frills union for The Warehouse staff with company money.
Iain McLean, a former area manager for The Warehouse, acknowledged yesterday that the payment might be seen to compromise the new union, but denied that was the case.
The Hastings-based co-founder of People First refused to say how much money the company had contributed, but admitted it had come from a Warehouse fund for staff initiatives.
"The donation was provided on a no-strings-attached basis," he said.
"It could provide that ammunition, but we're definitely an independent organisation. It certainly won't be affecting the way we provide benefits to our members at all."
Mr McLean confirmed he was approached by a former human resources manager for The Warehouse, Judy Lewis, about setting up the union.
He said Ms Lewis, who is also helping to run People First, had been approached by staff members about the issue.
The Warehouse, which is one of the largest employers in New Zealand, has denied setting up People First to dodge contentious labour laws likely to be introduced within the next few weeks. It said the new union was a staff initiative.
However, Mr McLean agreed it had been set up with the new laws in mind.
"We saw it as an opportunity with the new bill coming in to set something up for the people."
As drafted, the Employment Relations Bill will allow only unions to negotiate collective contracts. It will also make it illegal for companies to deny unions access to their workplaces.
The Warehouse managing director, Stephen Tindall, told the Business Herald the company had looked at introducing individual contracts for its 5000-plus staff, but had decided it would be an "absolute nightmare."
When staff approached him with the idea of a Warehouse-only union, he readily agreed.
The Council of Trade Unions claims the new union could run foul of the Employment Relations Bill, as it also requires any new unions to be at arm's length from the employer.
However, many other employers around the country are likely to be watching the new union with interest.
Both the Employers Federation and the Council of Trade Unions said yesterday they were unaware of any other companies that were looking at a similar scheme at this stage.
However, the Business Herald understands at least two other in-house unions have been established in recent months. One is believed to have fewer than 100 members, and the other fewer than 200.
Federation spokesman John McCaskey said most companies were waiting to see the final shape of the new labour laws before deciding their next move.
However, Mr McLean predicted other in-house unions could follow.
"We don't believe we're the first union of this type, but we are very unlikely to be the last."
Meanwhile, representatives from the National Distribution Union plan to meet with The Warehouse management next week to discuss the issue.
The union claims the company has denied staff the right to choose which union they want to belong to, by denying the existing union access to its stores.
"We've set up a meeting next week but I'm not holding my breath," said retail secretary Carol Beaumont.
Ms Beaumont said the union's only option at this stage was to spread information through word of mouth and personal contact with people who knew The Warehouse staff.
Warehouse cash used to fund union
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