All 76 Tesco outlets in the Republic are expected to remain closed today as the result of a strike by 9,500 staff. Its main rival, Dunnes Stores, which has 83 outlets, is opening for two hours longer, until 9 p.m., to cater for extra demand.
Today's one-day strike is to be followed by another next Thursday. Informed observers predict that it could become a test case, with employer sources arguing strongly that if Tesco concedes any more in pay rises, it could undermine the revised terms of the Programme for Prosperity and Fairness.
However, Mandate's national industrial officer, Mr John Douglas, said that under-18s working in Tesco earned only £3.35p an hour and the adult starting rate of £4.85p was only 15p an hour above the revised national minimum wage which comes into force on July 1st.
The company has offered to raise its adult starting rate to £5.14p and its top rate from £6.96p an hour to £7.41p. The Dunnes Stores adult rate ranges from £5.20p to £7.50p. The company increased pay rates by 17 per cent in December to hold staff. Mandate has been seeking a pay rise in Tesco since last May, and Mr Douglas said there had been "no real engagement" since then. Talks at the Labour Court broke down at 12.30 a.m. yesterday.
A Tesco spokesman, Mr Dermot Breen, said its rates compared favourably with Dunnes Stores, especially when other benefits such as staff discounts, Christmas bonuses and share-option schemes were taken into account.