Thousands of Tesco staff see bonus cut
Published 30/05/2015 | 02:30
Most of the almost 15,000 staff at Tesco Ireland will miss out an an annual bonus this year, after the retailer slashed the discretionary award for 2015.
Last year employees, including those working on the shop floor, received typical payments under the annual bonus scheme of around €250 each.
The share bonus scheme is structured to allow staff to become Tesco shareholders through a Revenue-approved scheme that allows workers to take an award in cash, shares or a mixture of both, according to the company.
Last year's award was based on an overall bonus that worked out at 1.5pc of pay.
However, "due to competitive market conditions and the performance of the Irish business, Tesco Ireland has made the decision to declare a 0pc Share Bonus to colleagues this year," Tesco said in a statement. The decision affects most employees at the company in Ireland, bar some longer-serving staff whose bonus payments are effectively guaranteed under historic collective agreements.
The retailer, the joint biggest grocery business in Ireland along with Musgrave's SuperValu, has endured a difficult time here in the past couple of years.
Like-for-like sales in Ireland fell 6.4pc in the last financial year to €2.55bn.