Boots Ireland has agreed to pay its 1,400 shop staff wage increases significantly above those agreed in the national wage agreement, Towards 2016.
The Mandate trade union, which is not party to the national wage agreement, has negotiated increases of 8-11 per cent for the staff, who currently earn €8.35-€12.71 an hour, depending on their grade.
Parties to the Towards 2016 agreement have agreed a 10 per cent increase, to be paid incrementally over 27 months.
The deal negotiated with Boots Ireland is to be backdated to the beginning of April, is not incremental and covers a period of 17 months. Mandate represents lower-paid workers in the retail sector. It decided not to be party to the national wage agreement as it believes the percentage increases involved are insufficient for workers on low rates of pay.
The deal with Boots brings the average pay for the staff to €9 per hour and will see most grades earning an extra €1 per hour. Mandate national official Linda Tanham said it had been agreed by both sides that the agreement was cost-increasing and that the company would seek changes in work practices.
During the negotiations the company said that the salary to sales ratio was 12-15 per cent, and this should be reduced to 7.9 per cent, which it said was the company norm. A reduction to this level has been agreed, with the reduction to come by way of natural attrition.
Changes will also be made to the company's sick pay policy to deal with an increase in short-term absences, according to the union. No comment was available from the company.