Auckland Ikea workers to strike Saturday in dispute over weekend rates and inflation-lagging pay

2026-10-23 12:42Author: Linda Hu

SummaryAbout 300 Ikea employees in Auckland are set to walk off the job this Saturday in what would be the store's first-ever strike in New Zealand. Workers First Union says the current pay offer falls below the rate of inflation and provides no weekend penalty rates, leaving staff worse off in real terms than their Australian counterparts. Ikea had not responded to requests for comment before publication.

HouGarden New Zealand, 23 October — Workers First Union deputy secretary Rudd Hughes said the two core demands are straightforward: pay increases that at least match the Consumer Price Index, and time-and-a-half rates for weekend work. Neither, he said, is currently on offer from Ikea management.

On pay, Hughes was direct. "The current pay offer they've got on the table is less than CPI so we see that as a pay cut," he said. While workers' nominal wages would not be reduced under the proposal, a rise below CPI means each dollar earned buys less than it did before — a real-terms loss of purchasing power.

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Hughes said Ikea received public praise when it entered the New Zealand market for paying staff the living wage — an independently calculated hourly rate designed to cover basic living costs, distinct from the government-mandated minimum wage. He said the company now appears to be distancing itself from that commitment. "Now they've kind of stepped back from that saying well we never guaranteed it. It was always just a happy coincidence," Hughes said.

The union also pointed to a direct comparison with Ikea's Australian workforce. In Australia, Ikea staff receive double-time pay for overtime, compared with the time-and-a-half rate the union is requesting for New Zealand weekend shifts. "What we're asking for even at weekend rates is less than what they get in Australia, which is double time," Hughes said.

Hughes said Ikea management justified the difference by arguing it has a legal obligation to pay overtime rates in Australia but not in New Zealand. He rejected that reasoning. "What they are saying is that New Zealanders are second-class citizens and we're going to treat them worse than we treat our Australian workers. We're not happy with that," he said.

The union also challenged the retailer's stated values. "Ikea came to this country trumpeting their 'progressive' attitude concerning industrial relations, but talk is cheap and so is their offer to workers," Hughes said. "Retail workers deserve to be recognised for the work they do, and weekend work should attract a top rate because of the time people have to spend away from their families and friends to earn their wages."

Hughes placed the dispute in a broader context, arguing that retail work in New Zealand is systematically undervalued. "Retail is incredibly poorly paid in this country. You can live on a retail wage in Australia, you cannot live on it here. Part of that is around the fact that people get overtime, get penal rates on the weekends," he said.

Ikea was approached for comment before publication but had not responded by the time this article was filed.

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