More than 9,500 staff at the country's at Tesco supermarkets are to ballot on industrial action.
Workers at the supermarket's 75 outlets say the company's profitability is not filtering down to staff and that they are among worst paid workers in the Irish retail sector.
Mr John Douglas, Mandate's Industrial Officer, said that the balloting process is due to get underway by the end of April, with a result expected approximately one month later.
Mr Douglas said: "Tesco is one of the most successful retailers in Europe, indeed, it is the only retailer ranked among Europe's top five companies.Last year its sales increased by 12% to £22.8 billion, and more significantly, its profits rose by 13% to £1.17 billion.However, despite their tremendous success, they offer rates of pay that are considerably less than the average industrial wage.
Meanwhile the Consumer Association of Ireland has welcomed Tesco Ireland’s latest wave of price reductions on 120 food and grocery items.
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Tesco Ireland has announced price reductions on 120 food and grocery items
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Mr Dermott Jewell, spokesman for the Association, said the move was a step forward particularly as the reductions included popular Irish and international brand products such as Flanhavans, McVities, Birds Eye, Uncle Bens andPampers.
In addition to Tesco branded goods, other branded goods included in the price reductions which average at 12 per cent are Huggies; Del Monte; Golden Vale Easigold; Mitchelstown Country Pride; St Ivel Shape yoghurts; Campbell’s Chicken and Irish Stew; and some of the Nestle range.
The price cuts – available from today in Tesco’s 76 stores in the Republic – are the fourth wave of reductions over the last seven months, following cuts in January 2001, October 2000 and September 2000.
Mr Jewell said Tesco’s price cuts seem to be a break away from the situation where supermarket prices were mirroring each other – as revealed in its last grocery price survey conducted in September 2000.
"The price cuts will help move the market and shake it up, giving consumer more choice – and better prices," he said.
But Mr Eamon Quinn, Marketing Director of Superquinn, played down today’s move by Tesco, saying it has already taken the price cuts into account in its weekly price survey and will match them in all its stores from today.
"Everyday in a supermarket is a ‘price war’," he said.
The Superquinn cuts will also include branded goods - when stocked or an equivalent, Mr Quinn said.
A spokesperson for Dunnes Stores expressed no surprise at Tesco’s cuts and said the chain would probably have a response later today.
As Tesco promises more price cuts in the future, Mr Jewell said he hoped the price cuts will continue.
"When a full range of daily required products are included [in the cuts] it will start a proper introduction of competition in the market," he said.
Meanwhile, more than 9,000 staff at the country's 75 Tesco supermarkets are to ballot on industrial action.The ballotwill take place over a number of weeks and the result is expected next month.