Tesco Ireland has confirmed it is seeking to cut pay and conditions for about 6% of its 14,500 employees. With this move close to 1000 of Tesco's employees will be hit with significant pay cuts.
The supermarket retailer has announced that it is seeking to transfer some "longer serving staff" from their pre - 1996 "inflexible" contracts to conditions agreed upon during negotiations with trade unions in 2006.
The company's spokesperson said that "our pre-1996 contract does not meet the needs of today's customers and was greed 20 years ago at a time when stores didn't open on Sundays or late nights. As a result we have too many colleagues rostered during our quietest days instead of our busiest; and guaranteed overtime which doesn't take account of the needs of each store or give colleagues equal opportunity to work overtime when it arises.
Mandate, the trade union representing the majority of affected workers, claimed cuts could cost workers about €6,500 a year but added the would be strongly opposed by staff. Shock and anger and now led to determination as the workers say they will resist any changes that are pushed through without negotiations. The mischievous attempts to attribute these cuts to "customer services" has gained no traction with anyone.
It aims to implement the changes by mid-April. Staff generally earn €11.97 per hour on the 2006 contracts, those at the upper end of the pay scale earn €14.31. The majority of those on pre-1996 contracts would be at this upper end given the length of their tenure with the company, says Mandate.
The retailer has said it would compensate workers for loss of earnings and would work out the extent of this compensation in discussions with staff and unions in the coming weeks.