This circular provides an update for SDA members on the ongoing negotiations between Coles and the SDA for a new Enterprise Agreement at the Coles DC. So far the SDA and Coles have met ten times. The negotiations have progressed significantly and a number of offers for a final package have been made by both sides.

Offers by Coles

Coles have made a number of offers for a final package to the SDA. Coles has made it clear that its view is that any wage increase above inflation must be funded by cost off-sets in the new Enterprise Agreement.

All of the offers made by Coles, which have included a wage increase above inflation, have also included at least one cost off-set item. For example, Coles’ most recent offer included:

• a 3.75% wage increase
• the Grade I rate to be extended from six months to twelve months
• an increase to the span of hours
• incentives to be paid at 100% performance
• the removal of the laundry allowance

The SDA has rejected all of the offers made by Coles so far.

Counter-Offers by the SDA

It is the role of the elected SDA Delegates and SDA Officials to bargain on behalf of SDA members. In doing so the bargaining team has made several counter-offers to Coles. In the SDA’s latest offer, the SDA proposed a 4.9% wage increase with a number of items which have been agreed in principle. The SDA also included in the offer a cost off-set for the company which would have allowed Grade I employees to be paid 90% of the Grade II rate for 3 months and 95% for a further three months. Coles has rejected all of the offers made by the SDA so far.

The SDA will continue to make offers to the company as part of the negotiations. The SDA will attempt to get the best possible offer from the company before seeking the approval of the offer from all members.