Less than 10% of retail employers plan pay increases in 2013

Retail Excellence Ireland CEO, David Fitzsimons, has said reports of planned pay increases in the retail industry are unique to a couple of grocery multiples

Retail Excellence Ireland has surveyed over 300 retailers and found that recent reports of planned pay increases are unique to certain grocery multiples and are "in no way indicative" of the overall sector.

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Less than 10% of retailers are planning pay increases in 2013, according to a new survey published by industry trade body, Retail Excellence Ireland.

Other key findings reported in the Retail Industry Labour Pay Rate Intentions survey, included that less than 10% of employers will reduce pay in 2013. The majority of employers (more than 80%) will retain current pay rates in 2013.

 What’s more, over 17% of employers said they will  reduce allowances such as bonuses and overtime rates in the coming year.

Commenting on the survey that involved over 300 retail companies, which have over 3,000 stores and employ 55,000 people, Retail Excellence Ireland CEO, David Fitzsimons said: "The findings from this in-depth retail industry assessment are not surprising given the current climate retailers are operating in. The vast majority of retailers who are freezing pay in 2013 are currently struggling with significant operating costs and decreasing consumer demand.

"The survey found that some retailers will have to actually reduce pay and restructure in order to continue trading. While recent commentary has focused on some planned pay increases in the retail industry, these are unique to a couple of grocery multiples and are in no way indicative of the pay intentions of the vast majority of retail industry operators. We have clearly stated to successive Government that the continued existence of upward only rent reviews is causing significant damage to job numbers and pay rates in the retail industry – the majority of retail tenants now pay more on their rent than on their total labour force. For Government to claim they are serious about jobs and yet not implement the promised legislation to abolish upward only rent smacks of hypocrisy, especially considering the industry has already lost 60,000 jobs since 2007."

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