16% pay rise at Dunnes Stores seen as bid to retain staff

In January 2000, Dunnes Stores became the latest of Ireland's large multiple retailers to increase or "restructure" its wage rates to attract and retain staff, as well as preparing for the introduction of a statutory national minimum wage later in the year.

Dunnes Stores, the Irish family-owned supermarket and retail chain, has increased its wage rates by an average of around 16% to attract new recruits and retain existing staff in a move which is also seen as gearing the company up for for the expected introduction of a statutory national minimum wage of a least IEP 4.40 later in 2000 (IE9907140F). The company's new national hourly rate, based on a six-point scale, is between IEP 4.70 and IEP 6.80. This band replaces Dunnes' former myriad of "town" and "country" rates.

The average rise of 16% includes the final phase (1%) of the increase arising from Ireland's three-year national pay agreement, Partnership 2000 (P2000- IE9702103F), which has been brought forward by six months. At national level, the MANDATE trade union, which represents 8,000 Dunnes workers, has been seeking to have the final phase of P2000 dropped and replaced by whatever emerges from the current round of national talks on a successor to P2000 (IE9911146F). It is expected that any such increase would be well above the final 1% available under P2000.

Part-time workers at Dunnes, meanwhile, will progress up the company's six-point pay scale continuously as their service with the company progresses. Previously, they progressed every two years. This development is in line with EU case law, which has found that restricting part-time workers to pro rata progression could be deemed discriminatory. Similar concessions have been made in most other retail employment in Ireland.

There will also now be a tea-break of 20 minutes for part-timers who work a full day (7.5 hours); night packers working between midnight and 06.00 will receive a new unsocial hours premium of 50% on top of normal pay; and those working in any Dunnes outlet with 24-hour trading are to receive a 100% premium for hours worked between midnight and 06.00.

The company's decision to pay the new increase followed a claim for a better single national pay rate by MANDATE. In keeping with industrial relations practice in Dunnes Stores, however, there were no direct negotiations. The company simply announced the new rates, after which the union posted notices in all outlets for its members, stating it was pleased that the company had "responded speedily and positively" on a number of priority issues.