Progressive distribution workers locked out

Distribution centre workers strike outside the company's Mangere site yesterday. Picture / Glenn Jeffrey

Striking staff and management of a national chain of supermarket grocery supply centres are stalemated.

Five hundred workers at Progressive Enterprises' four distribution centres, on strike since Friday, have been locked out of the Australian-owned company's Auckland, Palmerston North and Christchurch sites.

Yesterday, managing director Marty Hamnett said the centres, supplying Foodtown, Woolworths, Countdown, Fresh Choice and Super Value stores, would be shut down.

"We would prefer to keep the distribution centres open but we cannot meet unreasonable union demands for what in effect is a 30 per cent wage increase," he said. "These unrealistic union demands, if agreed to, would threaten the livelihoods of our staff, our suppliers and our very business and set a dangerous precedent.

"The supermarket industry is extremely competitive and under increasing price pressure, from fuel price hikes and a low dollar. We pay market rates and ensure our wages and wage increases are fair and sustainable."

National Distribution Union national secretary Laila Harre said the lockout meant that Progressive would not let workers return to work even if they chose to. The union said members would return to work only if the company committed to negotiating a single nationwide collective agreement.

Union negotiator Stan Renwick was yesterday released on bail after police arrested him for obstructing a roadway.

- NZPA