Bunnings Warehouse has agreed to pay staff the living wage.
Collective bargaining has been happening between the Australian-owned company and private sector trade union First Union for some time.
Bunnings Warehouse employees will now get $2 extra an hour, taking the wage to $20.55 an hour. On a 40-hour week employees will receive an extra $80 each week.
- Bunnings Warehouse to pay workers $11 million after holiday pay error
- Paying below living wage just exploiting union
First Union Retail, Finance and Commerce Division Secretary Tali Williams says the move is a major win.
"This is a massive victory for retail workers in New Zealand. No longer will they accept being paid low wages. Bunnings has set a new bar for what retail workers deserve to be paid.
"This negotiated offer from Bunnings will change workers lives. It recognises the Living Wage is a necessity to ensure working people are thriving not struggling to survive."
In a statement to Newshub Jacqui Coombes, Bunnings HR Director said:
"Our team is our biggest asset and providing an environment where they are rewarded and feel valued is really important to us.
We initiated the current wage offer to provide market leading entitlements and are pleased to be in a position to begin consulting with our team. Around 4000-odd workers are expected to benefit from the wage increase."