Retailer Smiths City has upped the pay rates of about half its 541 staff to ''at least'' the living wage.
In early May, the Employment Court ordered Smiths to pay its employees for a daily unpaid quarter-hour pre-work meeting going back at least 15 years. Arrears were to be paid to former and current employees going back the past six years.
That payment has so far been estimated to cost a total of $1.5million.
Both FIRST Union and the Living Wage Movement Aotearoa New Zealand complimented Smiths City on the living wage decision.
The announcement also included an extra day's holiday this year, plus an annual ''wellbeing'' day, taken from accrued sick leave entitlements.
The pay rise to ''at least'' the $20.55 hourly rate, or $42,744 annually, was announced by Smiths chief executive Roy Campbell, as part of the group's centenary celebrations, focused on its redeveloped Christchurch store, where the company was founded in 2018.
''Smiths City's success turns on its team, from those on the shop floor through to those in the support centre and the people in the warehouse, being focused on a single goal: helping our customers to live better,'' he said.
The furniture and appliances retailer has 34 locations around the country and 541 employees.
In early July Smiths admitted its four-year-old restructuring programme had been too slow and unfocused.
Smiths City shares are down more than 46% on a year ago, trading unchanged at 39c following yesterday's announcement.
Yesterday, Mr Campbell said retailing remained ''muted'' and challenges were still ahead, in light of a variety of recent business surveys showing a downturn in confidence.
Mr Campbell was ''comfortable'' that the $1.5million provision to pay for the 15-minute breaks was sufficient.
He confirmed the new living wage and other entitlements would have no material impact on earnings, saying the company had been planning the new employee conditions, ''for some time'' before the Employment Court decision.
National Living Wage convener Annie Newman given reports the living wage would have no material impact on Smiths' earnings, she believed many large employers would be in a similar position.
While welcoming the decision, Ms Newman said the next step for Smiths City was to become an accredited Living Wage Employer.
''We'd like to invite them to become an official Living Wage Employer, joining 100 employers across the country, big and small, that are part of the network leading the way on fair wages,'' she said.
Mr Campbell was asked if Smiths would raise the living wage annually and said it would be ''reviewed on an annual basis''.
Revenue for its year to April was $215.9million and its net loss before tax was $9.9million, down from a $2million net profit a year ago.
The loss was much larger loss than guidance given earlier in the year and part of it was attributed to the $1.5million reimbursement to underpaid staff.
In July Mr Campbell said the past year's challenging trading conditions exposed weaknesses in the restructuring programme, which needed an injection of new energy.
FIRST Union retail, finance and commerce secretary Tali Williams said the living wage offer signalled ''a brighter future for its workers and their families''.
