Business Irish

Thursday 14 November 2019

Penneys workers in line for 2.25pc pay increase after court decision

Boost: Staff at Primark-owned Penneys could soon gain a backdated pay increase
Boost: Staff at Primark-owned Penneys could soon gain a backdated pay increase
Leading light: Penneys is a major name on the high street

Gordon Deegan

The Labour Court has recommended a pay increase of 2.25pc for 5,000 workers at Penneys.

However, the recommended pay increase falls short of the 3.4pc rise that the Mandate union was seeking on behalf of its members at the Primark company.

In the recommendation, the Labour Court has backdated the pay award to January of this year.

Commenting on the Labour Court recommendation, assistant general secretary at Mandate Gerry Light said: "It is what it is. The recommendation doesn't meet the claim that we made. That is a fact."

Please log in or register with for free access to this article.

Log In

Mr Light said that the recommendation is to go before a shop stewards' meeting on November 20. They will then make a recommendation to members to accept or reject the proposed pay increase.

Mr Light stated that a ballot of members will take place shortly after the shop stewards' meeting, and he said that he hopes a result will be available before Christmas.

Mandate stated that the 3.4pc pay claim was broken down into two areas: 2pc for cost of living and 1.4pc in lieu of productivity gains.

Penneys owner Primark told the Labour Court that it had better wage rates than others in the sector, and that it also provided a comprehensive package of benefits for employees.

The company stated that it currently had a five-point market-leading pay scale in place.

Mr Light said that Penneys was a very successful retailer.

He stated: "Generally, Mandate has very good industrial relations with Penneys and they very much set the standard for others in the retail sector."

Mr Light added that Mandate will be in again to Penneys for a fresh pay increase for its members next year.

Irish Independent

Also in Business