Penneys staff to get pay rise

Some 3,000 staff working in Penneys stores around the country are to receive a 3.5 per cent pay increase.

The trade union Mandate said staff in the company had voted by 94 per cent to six per cent in favour of a deal which it had reached with management under a Labour Relations Commission process.

Under the deal, the 3.5 per cent increase - which forms part of the national agreement reached in 2008 - would be paid in two separate instalments.

The first will involve a 2 per cent rise from the beginning of January this year with a further 1.5 per cent to come into effect in June.

Mandate's assitant general secretary Linda Tanham said that while the union recognises that many companies in Ireland are experiencing difficulties as a result of the recession, there are others who have not been as affected as others.

"It is vital for this country, and indeed this economy that companies in a position to pay the terms of the negotiated National Wage Agreement do so in order to help get this country back on track by generating more consumer spending in the economy".

She said that the union would be "revisiting phase two of the National Wage Agreement with Penneys at a later date".

There are 38 Penneys outlets across the country employing about 3,000 staff.