Management of Roches Stores, which last week announced the sale of most of its outlets to British retailer Debenhams, has agreed to make up the €14.8 million shortfall in the group's pension deficit after pressure from the trade union Mandate.
Following two days of intensive negotiations at the Labour Relations Commission (LRC) between Roches management and Mandate, the two sides reached agreement on the outstanding issues of the pension fund and loyalty payments.
Mandate said that Roches had agreed to fund the existing shortfall in the pension fund in stages over the next year and a half, as well as making a loyalty payment of as much as €6,000 to staff depending on length of service.
Roches had already agreed to ensure that the same working terms for staff were maintained when they were switched over to Debenhams' payroll.
Roches last week agreed to sell nine long-term leases on stores including its flagship Henry Street store, to Debenhams for €29 million. The majority of the 2,000 staff are expected to be taken on by Debenhams, and since the initial announcement the union has been in talks with the company to ensure a smooth handover for the employees.
Several issues, including the provision of a staff canteen and the ability of some staff to take overtime in lieu days, were agreed prior to this week's session at the LRC.
The pension fund top-up relates to the group's defined benefit scheme, which closed to new members in 2001. The newer defined contribution scheme is in surplus.
Linda Tanham, spokeswoman for Mandate, welcomed the agreement, saying it addressed the union's main concerns. "We are satisfied that the concerns of staff have been fully addressed in this agreement," she said.
"The sale of the company had thrown up a new set of circumstances for our members, many of whom have given years of dedicated service.
"We are pleased that their contribution to Roches Stores has been recognised and that staff will be appropriately rewarded for the part they have played in the success of the company."
Staff will need to have been with Roches for 40 years to receive the full €6,000, while service of 20 years will be rewarded with a sum of €3,100.
Redundancy terms have also been agreed for the staff leaving the company - about 90 people, including those employed at Roches' Sandyford, Co Dublin, office that's closing, are expected to leave.
Under the terms of the agreement employees will receive six weeks' pay per year of service for the first eight years of service and five weeks' pay per year for the remainder, inclusive of statutory redundancy.
