Business Irish

Saturday 21 April 2018

Pennys union to vote on 2pc pay increase

The union at Pennys is to ballot workers on a 2pc pay rise.
The union at Pennys is to ballot workers on a 2pc pay rise.

Gordon Deegan

The MANDATE union is going to ballot its 4,000 members at Pennys on a 2pc pay increase in the coming weeks.

This follows the Labour Court recommending an increase higher than what was on offer from Penny's owner, Primark and not connecting it to any revised pay-scale being agreed with new entrants.

In the dispute between the two sides, MANDATE was seeking a 3pc pay claim for 12 months retrospective to June 1st last year.

However, management offered a 1.5pc pay rise contingent on a revised payscale being agreed for new entrant.

After the matter was refered to the Labour Court the union said it could not accept an increase in pay that is awarded on the basis that new entrants into the company will be worse off than existing employees.

In response, management stressed that it has not rejected the union's claim and is prepared to award a pay increase.

However, Primark stated that as the company is operating in a highly competitive market it must be prudent in relation to increasing its costs and as a result, the pay increase is on the basis of agreement being reached on a pay scale for new entrants.

The Labour Court recommended that pay should be increased by 2pc with effect from 1st une last for twelve months.

In its recommendation, the Labour Court makes no reference to a revised pay scale for new entrants.

A spokesman for MANDATE said yesterday that its members will be balloted on the pay increase on the basis of no revised pay-scale for new entrants.

The spokesman said that Pennys is regarded as a good employer that compares favourably with Dunnes Stores.

Irish Independent

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