Tesco Ireland has announced a 10% general salary increase for staff covering 2021, 2022 and 2023.
The company said a 6% salary increase will take effect from April 1, 2022, of which the 2.5% will be retroactive to April 2021.
An additional 4% increase will be granted starting April 1, 2023.
“The salary award announced today follows recent investment in benefits, including paid maternity, paternity and adoption leave, and the introduction of a new industry-leading pension plan, representing a total investment in compensation and benefits of 40 million euros,” Tesco Ireland said.
The company says the pay award is in addition to two years of discretionary peer bonus payments of 2.5% for 2021 and 2% for 2022.
“I am pleased to be able to make this announcement to our colleagues at a difficult time for families with rising costs of living,” said Natasha Adams, CEO of Tesco Ireland.
Ms. Adams added that the pay award would provide certainty of pay and benefits for staff and secure the business and jobs for years to come.
Since July 2021, Tesco has been involved in discussions on retail wages and benefits with union representatives and colleagues, including local discussions, assistance to the Worker Relations Commission (WRC) and the Employment Tribunal.
The Mandate union said it had taken note of Tesco Ireland’s announcement.
“We will now consult with our representatives and members in the coming days,” said Jonathan Hogan, Deputy Secretary General of the Mandate.
Earlier this month, the Irish Trades Union Congress met to discuss pay increases for private sector workers.
Affiliated unions from sectors such as transport, aviation, construction, pharmaceutical and financial services provided an update on the negotiations currently taking place with individual employers.
In some cases, unions said progress on pay was being made through a variety of methods, such as lump sum payments and bonuses, not just percentage increases.
In December, ICTU advised that private sector employees should seek salary increases of between 2.5% and 4.5% during 2022.
In February, those figures were revised up, due to rising inflation, and unions were advised to seek increases in the range of 2.5% and 5.5%.