Mediation ordered in supermarket row

Published: 8:10AM Friday September 01, 2006 Source: Newstalk ZB

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Mediation could begin immediately in the dispute between supermarket operator Progressive and the union representing 500 of its locked out distribution workers.

Picketing is set to continue outside supermarkets despite an Employment Court judge ordering both parties go back to the bargaining table.

The workers walked off the job a week ago in what was a three day strike, but were then locked out by their bosses.

Thursday's court hearing was to discuss whether Progressive is hiring a logistics company to carry out the work of the distribution workers - an action which is illegal under the Employment Relations Act .

Judge Graham Colgan reserved his decision and said mediation could begin on Friay and last up to four days.

National is putting the stand-off between striking workers and supermarket operator Progressive Enterprises squarely in the lap of the Labour.

The Employment Court has directed the two parties back to mediation to settle their differences.

National's industrial relations spokesman Wayne Mapp says labour laws giving unions preference has led to 500 employees putting at risk the jobs of more than 17,000 non-striking workers. He says if unions are given preferential treatment industrial trouble will result.

Some shelves in Foodtown, Woolworths and Countdown are looking bare as the pay dispute between Progressive and around 500 of its distribution workers drags on. But Progressive's competition is refusing to hit the supermarket company while it is down.

Foodstuffs general retail manager Mark Baker says trading at its New World and Pak 'n Save stores has been normal throughout the week. He says anything that affects supplier products getting to supermarkets is unfortunate for consumers.

Baker hopes both parties come to an amicable agreement as soon as possible.

Progressive Enterprises could be hit by another strike next week, this time by meat workers in Christchurch.

Meatworkers to strike

Meantime, pay negotiations for workers at the company's Southmore meatworks, which supplies the South Island, have broken down.

Meatworkers union spokesman Bill Watts says Progressive is not prepared to move on its 3.5% pay offer.

He says the union is seeking a 12% increase over two years.

Watts says workers have voted for industrial action but they have to give Progressive Enterprises three days notice before they can go on strike.

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