Boots deny threat to cut employees' wages

Boots have denied reports from Mandate that they are seeking to cut employees' wages as part of their cost-cutting measures.

Mandate and Boots management entered a series of negotiations after the company informed the union that it was to introduce a range of cost-saving measures, which recently collapsed.

The company said: "Boots Ireland has been in discussions with Mandate over several months concerning adjustments to the future terms and conditions of employees in Ireland.

"These changes are necessary to maintain the future prosperity of the business, whilst still maintaining a highly attractive employment package.

"There will be no reductions in the current rates of pay for employees, who each received a 6% increase in April 2009 as part of the National Wage Agreement.

The union Mandate said that, despite posting €20m profits for the year to March 2008 in Ireland, the company is now attempting to force pay cuts of up to 15.5% along with a reduction in terms and conditions of their employees.

The company continued: "Despite making a number of adjustments, which took into account feedback from employees and from Mandate, the proposed changes were rejected by the union.

"In the greater interests of all employees in securing the future prosperity of the business and to create a sustainable cost base for future expansion, Boots Ireland decided to introduce the changes, which will take effect in mid-November 2009. According to the agreement that Boots Ireland has with Mandate, there is an obligation to give three months notice, which was done in mid-August 2009."

But the union has claimed that Boots has threatened to terminate all previously negotiated agreements with Mandate.

The firm said: "While we are disappointed by the stance being taken by Mandate, Boots Ireland remains open to further discussions with them about a revised agreement.”

Boots Retail Ireland has 1,700 members of staff working in 54 stores across the country.