Less than ten per cent of retail employers plan pay increases in 2013
Retail Excellence Ireland, the largest retail industry trade body in Ireland, has published a new Retail Industry Labour Pay Rate Intentions survey which found that fewer than 10 per cent of retailers are planning pay increases in 2013.
The survey of over 300 retail companies, which have over 3,000 stores and employ 55,000 people found that fewer than 10 per cent of employers plan pay increases in 2013; fewer than 10 per cent of employers will reduce pay in 2013; more than 80 per cent will retain current pay rates in 2013 and more than 17 per cent will in the coming year reduce allowances such as bonuses and overtime rates.
Commenting on the survey, 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 Governments 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 the 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,” Mr Fitzsimons concluded.