Ceres Organics Addresses First Union’s Misleading Statements

March 30, 2017

CERES ORGANICS ADDRESSES FIRST UNION’S MISLEADING STATEMENTS

This Briefing Note has been prepared by Ceres Organics to address misleading statements and claims made by First Union in support of its demands of the business. The Union today called on its members at Ceres to strike. Until recently the Union had nine members, but we understand that today, following a number of Ceres people cancelling their Union membership, there are significantly fewer. One of the company’s two stores is also being picketed.

Ceres Organics remains willing to finalise the Collect Agreement and negotiate with the Union representing members of the Distribution Centre. However, as it has told the Union, it will not alter its historic business cycle to make to one-off wage increases like that being sought by the Union (3%), especially as all staff, including Union members, received an average 6% wage increase less than eight months ago.

Ceres Organics values and cares about it staff immensely, and treats them according. It is determined to protect its business and people in the face of demands from First Union.

While the strike action is about the wage negotiation process, the union is attempting to confuse the situation by referring to an incident that happened last week where management were required to diffuse an argument between two employees (one a union-member). The union has claimed that by management diffusing the situation the employee was denied representation. In reality, the situation was managed without the need for either a formal investigation or disciplinary action.

The Annual Business Cycle

Ceres Organics’ financial year runs from April 1 to March 31. Historically wage and salary increases are awarded in July, following the annual business review and forecasting process. Last July, around eight months ago, staff - including the (then) nine Union members of the 40-strong Distribution Centre - received on average a 6% increase. This was well above average sector increase (1.5%), and Ceres already pays above market rates.

The importance of the annual business cycle to Ceres’ operations has been explained to the Union which is unwilling to accept or recognise that Ceres’s wage consideration and increases are tied to business performance.

Ceres Organics does not intend to interrupt its business models simply because the Union feels it is time to lodge its demands and undertake industrial action.

Staff generally understand and support the company’s business processes – reviewing remuneration is part of the business planning cycling that takes place in July. Any wage or salary increases are awarded to all staff then.

Ceres Organics is determined not to be bullied by the Union into changing its business practice around annual review, planning and forecasting, of which consideration of terms and conditions for staff, including wage and salary increases, are part.

Its growth depends on it continuing to be an agile business. Its business preview and planning processes help ensure this, particularly at a time when it is potentially heavily impacted by changes in the value of the US dollar.

Staff have a lot of flexibility in their roles

Ceres Organics has built a reputation for being a sustainable business committed to looking after its people, and operates a flexible working system for the benefit of staff. For example, a number of early shift staff (starting at 5am) interrupt their shift to take children to school.

The union has told Ceres that it “does not care” about such flexible arrangements. This is despite such flexibility being one of the factors that makes the Ceres workplace different and attractive to many staff.

Establishing a Collective Agreement

Ceres and the Union have been trying since last July to establish a collective agreement for those distribution centre workers who have chosen to be represented by the Union. Ceres submitted a draft document to the Union in November last year. There had been no formal response to the Company’s draft document, when a week after receiving the document the Union organised for its (then) 10 members to strike issuing a statement to the media saying Ceres was an unethical company that had not offered a wage increase. This was regardless of these staff receiving an average of 6% increase less than five months earlier.

Ceres was given no reason for the strike, and was advised of the strike only 15 minutes before the event took place.

Ceres is NOT saying the Union members will not receive a wage increase this year. It is saying that terms and conditions are considered part of its annual business process. The timing of this will not be changed at the dictates of the Union, and negotiation will take place after this important business process.

About Ceres Organics

Ceres Organics is a supplier of a range of certified organic products to the New Zealand grocery industry. Ceres branded products are predominantly shelf-stable, but it also sources and supplies a range of fresh organic products. The company operates two stores, one in Ellerslie (which was the first organic store in NZ) and the other in Ponsonby Central, a produce food market on Ponsonby Road.

Ceres Organics started operating in 1982 from a garage in Mt Wellington. Its growth in the organic foods sector is based on its vision backed by sound business operations, and a commitment to do the right thing by its people, its customers and the communities in which it operates.

ENDS

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