To: All Mandate Members, Tesco Ireland
Re: Mandate/Tesco WRC Proposals
21st November 2021
We hope you are keeping well. We want to update you on the WRC discussions with your employer Tesco. As you may be aware, your Mandate National negotiating team have been engaged in a number of intense discussions with your employer under the auspices of the Workplace Relations Commission (WRC) for some months now. We are pleased to inform you that the WRC has brokered proposals which both the company and your Union’s National negotiating team are prepared to recommend to you the members.
The proposal reflects the re-establishment of a collective bargaining process and a conducive working relationship between your employer and both Mandate and SIPTU, regarding the potential enhancement of our members terms and conditions of employment in the future, all of which comes after a 5 year absence of any collective bargaining within the company. Furthermore the proposal reaffirms both the Company and your Union’s commitment to existing collective agreements, all of which forms your terms and conditions of employment.
Pay & Rewards
The WRC document proposes that the existing model of basic pay plus the premium payments will be replaced with a new higher consolidated pay rate. It is proposed that the consolidated pay rate will replace all premium payments that employees currently receive.
In return a total of an 11% pay increase is proposed to apply to all employees effective from 1st October 2021 up to 1st April 2023. Broken down as a 5% pay increase and a 6% compensation package in respect of the move to a consolidated pay rate. For full details please see a link to the full proposal below.
Despite the majority of members benefiting significantly from consolidated pay, a small number of members who are consistently in receipt of 6 plus hours’ premium time or more will receive compensation on a graduated basis, see the proposals for full details.
As you are aware, the vast majority of employees, currently have a contractual obligation to work 3 out of 4 Sundays. The WRC proposal now offers our members a reduction in their obligation to now work a maximum of 2 out of 4 Sundays in the future, which I’m sure you will agree is a welcome development from a work/life balance perspective.
Universal Sick Pay Scheme
From 1st March 2023 a single universal sick pay scheme is proposed that will encompass sick pay equivalent to 8 weeks top up of the state illness benefit calculated on the new consolidated pay rate with the initial 3-day waiting period for all employees.
From 1st March 2022, it is proposed that a new and improved benefits will apply for all employees with 12 months service:
- 14 weeks paid maternity will be provided (the company will top up the State maternity benefit to the consolidated pay rate)
- 14 weeks paid adoptive leave be provided (the company will top up the State adoptive benefit to the consolidated pay rate)
- 2 weeks paid paternity leave be provided (the company will top up the State paternity benefit to the consolidated pay rate)
The above represents a very significant departure for the retail sector.
It is proposed to introduce a new DC pension scheme, the provisions of which are mutually beneficial to both the members and the company, please refer to the link to the WRC proposal for full details.
Given the complexities attached to the RSO pay structure, a commitment has been made to have a separate discussion with RSO trade union representatives in relation to the terms and conditions of this population, in the interim RSO staff members will benefit from the 5% pay increase proposed, improvements to sick pay, adoptive leave, and family leave arrangements as well as the new defined contribution retirement pension savings scheme.
The parties spent a significant amount of time exploring a solution to the outstanding matters in respect of employees, commonly referred to as the pre-1996 staff. Despite all parties proactively engaging, a final agreement has not yet been achieved. All parties agree to continue to have a direct engagement under the auspices of the WRC in an attempt to reach an acceptable resolution in respect of the outstanding matters;
- 8% / Retrospection
- Consolidated Pay
- Potential for Voluntary Redundancy Offer
This engagement will comply with existing agreed collective agreement. In the interim the terms of the proposals in respect of the 5% pay increase (the non-consolidated element of the pay increase), the proposed benefits to sick pay, the introduction of family leave benefits and the changes to pension scheme arrangements will all be provided to these employees as part of the broader proposal.
Balloting Process – How do I Vote on the Proposals
The proposal represents the efforts of all our members and indeed our activists within Tesco after months of negotiation and in this regard the Negotiating team are recommending the proposals for acceptance. As your Union informed you from the outset of these national negotiations, this proposal will be the subject of a ballot of you, the members. To that end your local Mandate Officials will visit your stores in the coming weeks to talk through the proposal and answer any questions you may have and ballot you on the proposals. Finally the negotiating team would like to thank the members for their patience and perseverance and we look forward to meeting you in the stores over the next couple of weeks to discuss the proposals in more detail.
CLICK HERE to view the proposal in full.
Tesco National Negotiating Team (Mandate)