Supermarket distribution centre workers have reached a deal that will include pay rises of more than 25 per cent.

First Union and Foodstuffs North Island has signed a collective agreement covering the company's distribution centres.

Workers will get a pay boost of between 9 per cent and 25.2 per cent.

The deal only applies to the chain's permanent workers in its distribution centres but wins further rights for the labour-hire workforce, too.

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The union said last year that "hundreds" of them were used in permanent positions, allowing the employer to circumvent some of the obligations it would have to permanent staff.

First Union divisional secretary Jared Abbott said that had since been reduced to about 10 per cent of the workforce.

Under this deal, labour-hire workers will be given a new system to manage their performance and a disciplinary process if there is a reduction of hours or dismissal.

They will also have to be shifted to permanent work within six months.

Workers in Auckland with more than five years' service with the company will have their hourly rate increased from $20 to $25 within the next 18 months.

All workers in Palmerston North will receive wage increases between 7 per and and 14 per cent this year as the company has agreed to pay the living wage by October.

Abbott said the agreement was the start of a new relationship between the company and the union.

"This agreement not only sees around 60 per cent of our members receive over 20 per cent in increases by the end of next year, but also sees the company commit to industry-leading practises for engaging labour-hire and the establishment of union management meetings with elected workplace reps from across the country, including those working in subsidiary companies."

SUPPLIED Foodstuffs chief executive Chris Quin.

Abbott said the company had engaged in constructive communication throughout the bargaining process.

"What's most impressive is that this deal came about from the company listening to their workforce, not from strike action."

Chris Quin, chief executive of Foodstuffs North Island said the deal included wage increases of between 3.2 per cent and 4.2 per cent a year for three years, as well as a rewards scheme for high-performing team members.

"We are pleased that thanks to a high degree of engagement with our warehouse team, we have agreed a positive outcome which is to the mutual satisfaction of all parties. Together we can continue to meet the needs of our customers with the ongoing support and commitment from our team, and we are excited by the continued level of interest people have for working on the team at Foodstuffs."

Foodstuffs South Island has not yet reached an agreement.

"This model allows for a more sustainable business that gives workers stronger spending power within their respective communities."