Mandate trade union, which represents 5,000 of the company’s 10,000 staff, welcomed the company’s decision to confirm “concession” of the claim at in-store communications meetings with its employees.
However, the union said the pay increase “must be implemented with secure, banded-hour contracts for it to be meaningful”.
Gerry Light, Mandate’s assistant general secretary, said: “This concession of our claim for a 3% pay increase is important, and it shows our campaign is making progress, but workers also need security of hours.
“What use is a pay increase if management can reduce your hours by two or three in a week, leaving you with less income?
“Any pay increase must be implemented with banded-hour contracts to ensure workers have decent and secure earnings from week to week.
“At the moment, they don’t know if they’ll have the hours and the income to pay their electricity bill or feed their families next month.
“They can’t get a mortgage or a credit union loan because of their low-hour contacts.”
As part of its Decency for Dunnes Workers campaign, Mandate will host a national demonstration on June 6. Workers and supporters will assemble at Merrion Square in Dublin at 1pm and march to Dunnes Stores head office on Georges St.
Mandate has called on other trade unionists, politicians, community groups, and the public, to attend and show their support.
“What Dunnes workers are asking for is very reasonable and is afforded to all workers in Dunnes major competitors in the retail sector, including Tesco, Penneys, Marks & Spencer, and Supervalu,” Mr Light said.