Matt McCarten: Union clinches better deal with food giant

An historic victory was won by low-paid workers this weekend. A union employment agreement between my union, Unite, and New Zealand's biggest quick-service chain, Restaurant Brands, has won significant pay increases and improvements for more than 7000 workers employed at Starbucks, KFC, Pizza Hut and Restaurant Brands' 0800 call centres throughout the country.

After months of tireless negotiations and a sustained campaign by our union called supersizemypay.com a deal was concluded yesterday.

From tomorrow all adult workers in KFC and Pizza Hut store workers will receive a 7.9-14.2 per cent wage increase on their base rates. Starbucks workers will get a minimum rise of 75c an hour and the 0800 contact centre workers will get 11.5-14.9 per cent.

Next year these workers will get another increase linked to the percentage the minimum wage rises. For example, if it moves by 75c as it did this year then they will get another 7.3 per cent. But if it moves by a dollar then it will be 9.8 per cent. Unite's long-running supersizemypay.com campaign will continue all year to achieve this.

The most significant political victory was the acceptance of Restaurant Brands that paying young workers less, soley based on their age, could not be justified. As a first step, all workers under 18 will move to 90 per cent of the adult rate. This means wage increases for younger workers of up to 34.2 per cent. Fifteen-year-olds get between $2.10 and $2.44 an hour. Younger supervisors will earn the full adult supervisors rate for the job. That's between 24-37 per cent more. A 17-year-old supervisor can now earn $14.68, an increase of $3 an hour. One category of supervisor gets a 54 per cent jump!

This victory for young workers exposes the nonsense parroted by politicians and so-called employer representatives that employers pay young workers to help them. The fact is young people in most industries are employed to do the same work as anyone else. They are not trainees or apprentices. The reason they are employed is because they are cheaper and more compliant. The ruse is up.

These significant wage increases and the end to youth wages have been a huge success. But probably the most important achievement was the agreement to end the total casualisation of hours in this industry. Up to now, workers can have their hours increased or decreased at the whim of a manager. This enormous power that local managers wield over their staff has kept the workforce cowered and compliant. Many managers admit privately they use this power to get rid of so called "trouble makers".

Restaurant Brands is the first employer to agree to give more secure hours to its workers. From now on when additional hours become available in stores, existing workers will be offered these new hours before new staff are employed. If more than one worker wants the extra work then the manager must offer the work to the worker with the most service. If the store business drops, any reduction of hours must be fairly applied.

Workers in these industries have never had this security and this one concession has removed the biggest stress for many workers who live in fear of their insecure wage packet.

We also achieved more than 20 new conditions that will make a huge difference to workers. These include increasing their 10-minute smoke breaks to 15 minutes, being supplied adequate uniforms and even getting free hearing tests.

Unite negotiated for every Restaurant Brands worker in New Zealand to get the union pay increase and other benefits. In recognition of this decision Restaurant Brands has agreed to pay every union member a lump sum equal to 1 per cent of their quarterly earnings every three months. Effectively this pays the union fees for Unite members. This way everyone wins. Now our job is to recruit all the non-members who get the union deal.

Unite has achieved historic improvements but this is just the start. McDonald's and Burger King are next in the firing line.

Restaurant Brands have set the pace. We should now give credit where credit is due.

So when you take your family out make sure it's to either Pizza Hut or KFC.

If you meet over coffee go to Starbucks. Staying home? Ring 0800-838383 and get pizza. They need the extra business.

They are treating their workers better than their competitors and therefore deserve your business.

- HERALD ON SUNDAY