In what is an emerging trend in Ireland's large-scale supermarket and retail sector, the Superquinn chain - following an agrement concluded in March 1999 - is to introduce a new opening pay scale which is pegged at the same IEP 4.40 an hour rate proposed under the national minimum wage provisions due to come into effect in 2000.
A major pay deal for 5,000 employees in one of Ireland's major supermarket outlets, Superquinn, is to override the proposed national statutory minimum wage of IEP 4.40 an hour, expected to be introduced in 2000 (IE9804246F). The workers concerned, members of the shopworkers' trade union, Mandate, voted to accept the deal on 16 March 1999. The agreement involves a substantial increase on the current lower starting point of IEP 3.75 an hour, which is to be replaced a new "training" rate of IEP 4.40 an hour - an increase of 17% - which is exactly the rate at which the proposed minimum wage is currently envisaged.
Superquinn is to introduce a range of new pay rates for different categories, with increases of between 5.5% to 11% for those further up the scale. There is also a provision for extended working hours on a voluntary basis and the introduction of a performance appraisal system. Other elements of the deal are as follows:
- the introduction of extended working hours, including Sundays, on a voluntary basis;
- part-time workers will progress up the scale on an annual basis, rather than on the previous pro-rata basis;
- introduction of a 10% discount scheme; and
- up to six days of extra service-related holidays per year.
The company's move follows a pattern started in 1998 by Marks & Spencer, which introduced rates of between IEP 4.39 an hour (trainee rate) to IEP 6.00 an hour (after 12 months) for its 2,000 employees (IE9805249N). Meanwhile, Tesco Ireland, which employs around 10,000 in the Republic, is currently in talks with Mandate on a similar agreement.
These moves are also seen as a response to increased labour mobility in Ireland, where unemployment has fallen to below 7%. The sector has undergone considerable expansion in recent years with the influx of UK-owned giants. Attracting and retaining staff is now a primary concern for the companies concerned.