Pay talks have broken down between Tesco and its unions. The 10,000 staff, who are members of Mandate and SIPTU, are due to conclude a strike ballot on June 8th and industrial action could begin two weeks later.
Meanwhile 2,900 Aer Lingus clerical staff are to conclude their ballot tomorrow on whether to accept a pay deal worth a minimum of £2,000 a year extra for each employee. The result is expected to be in favour but if not, it could throw the airline's industrial relations strategy into turmoil. Catering staff, who have still to conclude productivity negotiations with the airline, are threatening to resume industrial action.
Tesco pointed out yesterday it had made significant pay offers to staff under 18 and agreed to abolish the "rural" rate which applies outside the main urban centres. This would bring the juvenile rate up from £3.50 to £4 an hour. The abolition of the "rural" rate would be worth about £20 a week to most of the adult employees affected.
It has also offered to raise the basic adult starting rate from £4.85 to £5.14 and the top rate from £7.41 to £7.60 in return for full flexibility. It says its main competitor, Dunnes Stores, has a top rate of £7.50.
The overall cost of the package would be an additional 4 per cent on payroll, according to the company. This is on top of the first 7.5 per cent increase due under the Programme for Prosperity and Fairness this year.
Mandate's industrial officer, Mr John Douglas, said on behalf of the two unions that Tesco's final position was insufficient to address the serious low pay problem at their 75 supermarkets. "Tesco is one of the most successful retailers in Europe", he said. "Indeed, it is the only retailer ranked among Europe's top five companies."
Mandate and SIPTU had submitted claims to the company a year ago but the pace of progress had been extremely slow, he said.