A recent pay deal agreed between the trade union Mandate [1] and the Boots chemist’s chain will entitle workers to pay increases worth between 8% and 11% over 17 months. The deal is higher than the rate agreed under the current social partnership agreement, Towards 2016 (2.86Mb PDF) [2], which the retail, bar and administrative workers’ union opted of out last year, in favour of ‘free’ collective bargaining. The General Secretary of Mandate, John Douglas, explained that the decision not to sign up to the national partnership agreement arose due to concerns that the needs of low-paid workers were not being adequately addressed.[1] http://www.mandate.ie/[2] http://www.taoiseach.gov.ie/attached_files/Pdf files/Towards2016PartnershipAgreement.pdf
In a recent pay deal with the Mandate trade union, the UK chemist chain Boots has agreed to wage increases worth between 8% and 11% over 17 months for 1,700 staff. The pay deal has been agreed on in return for cost offsetting measures, including a reduction of the salary-to-sales ratio, an extension of the probationary period for new recruits, and changes to the company’s sick pay policy.
A recent pay deal agreed between the trade union Mandate and the Boots chemist’s chain will entitle workers to pay increases worth between 8% and 11% over 17 months. The deal is higher than the rate agreed under the current social partnership agreement, [Towards 2016 (2.86Mb PDF)](http://www.taoiseach.gov.ie/attached_files/Pdf files/Towards2016PartnershipAgreement.pdf), which the retail, bar and administrative workers’ union opted of out last year, in favour of ‘free’ collective bargaining. The General Secretary of Mandate, John Douglas, explained that the decision not to sign up to the national partnership agreement arose due to concerns that the needs of low-paid workers were not being adequately addressed.
Efforts to combat low wages
Many of Mandate’s retail and bar staff members are lowly paid, relative to average earnings. As a result, the union has expressed concerns that its members have been left behind in Ireland’s economic boom. According to Mandate, the current average hourly wage in retail is €9, while the minimum wage currently amounts to €8.30 an hour and will increase to €8.65 with effect from 1 July 2007.
Mandate has 42,000 members working in the retail and bar trades. Last year, the union lodged claims with large retail employers for a minimum hourly pay rise of €1 per hour, equivalent to an increase of about 10%. Mandate has also negotiated a significant collective pay deal with Tesco, which is also outside of the Towards 2016 terms. The Tesco deal is worth a total increase of 12% over 24 months and covers some 10,000 workers.
Terms of agreement
The Boots pay deal will amount to an increase of €1 an hour across most grades, with increases ranging from between 8% and 11% over 17 months, and covering 1,700 staff. In comparison, the national social partnership agreement provides for an increase of 10% over 27 months; therefore, the Boots deal goes some way above this.
Mandate represents all grades of Boots staff, including team leaders and supervisors. The pay increases will apply from 1 April 2007, and the new hourly rates will be backdated from 1 January 2007. The deal will expire on 31 May 2008.
It has been agreed by management and the union that the deal will increase costs and is outside of the national wage agreements. Therefore, the company has sought changes to offset the cost of the deal. It is stated in the agreement that staffing levels in the Republic of Ireland are currently higher than the company norm. The agreement stipulates that: ‘We must work towards a salary-to-sales ratio of 7.9% (company norm). This will be a gradual process over 24 months. Some of our stores currently have a salary-to-sales ratio of 12%.’ It is envisaged that the reduction of the salary-to-sales ratio will occur by natural attrition and that no redundancies will be implemented.
Furthermore, Boots wants to extend the current 13-week probationary period for new recruits to six months. A decision would then be made to assess suitability after six months.
Changes will also be introduced to the company’s sick pay policy. Boots Ireland currently pays for 12 sick days a year, with the first three days of any absence paid in full. From the fourth and subsequent days, social welfare must be claimed and the company pays the top-up on the normal daily rate, up to a maximum of 12 days. Boots has been experiencing an increase in short-term absences, and the company wants to minimise the disruption caused by such absences. Accordingly, it is proposed that sick pay will be increased to 16 days a year, but that the first day of any absence will now remain unpaid. From the fourth and subsequent days, up to a maximum of 16 days, social welfare must be claimed and the company supplements this to attain the normal daily rate.
In addition, for all new workers employed after 1 April 2007, the company will pay sick leave for up to five weeks or 25 working days. However, the company will not offer sick pay for the first three days of any absence period for new employees.
Brian Sheehan, IRN Publishing
Il-Eurofound jirrakkomanda li din il-pubblikazzjoni tiġi kkwotata kif ġej.
Eurofound (2007), New pay deal secured for retail chemist’s employees, article.
