IBEC calls for halt to grocery sector January pay rise

IBEC, the group that represents Irish business, today called for the immediate halt of a January pay increase of 1.25% in the retail grocery sector, saying it was seeking an urgent meeting of the Retail Grocery Joint Labour Committee on the issue. IBEC said that the pay award should be put on hold in light of a recently announced review of the wage procedures that give rise to such increases.

IBEC, the group that represents Irish business, has called for the immediate halt of a January pay increase of 1.25% in the retail grocery sector.

IBEC said that the pay award should be put on hold in light of a recently announced review of the wage procedures that give rise to such increases.

The group said it was seeking an urgent meeting of the Retail Grocery Joint Labour Committee on the issue.

The pay award arises under the terms of an Employment Regulation Order (ERO) affecting the sector.

EROs set wage levels and other terms of employment above and beyond the national minimum wage in sectors such as retail, catering and hospitality.

IBEC said that the upcoming review of these rules should not preclude the abolition of the current system, which it said was at odds with the economic needs of the country.

IBEC Director Brendan McGinty said: "Most retailers simply cannot afford pay increases, especially as the Budget will reduce consumer spending power next year. Higher labour costs, on top of the effect of bad weather on trade, will simply put more retailers out of business and cost jobs."