THE OWNERS of grocery retailer Superquinn have agreed to give its workers 1.5 per cent of the proceeds from any sale of the business in the future and a potential share of profits when the company returns to the black.
This is part of a major restructuring of the business that will also involve 394 redundancies and a pay freeze for at least 12 months.
In addition, the two sides have agreed to new arrangements in relation to working hours.
It is understood that more than 90 per cent of workers voted in favour of the proposal. Ballots were conducted by Mandate, Siptu and the Bakers Food Allied Union.
“If companies come to us in difficulties we won’t be found wanting in coming up with innovative ideas,” said Mandate’s assistant general secretary Gerry Light.
In a statement, Superquinn welcomed the agreement with workers. “The Superquinn Programme for Competitiveness and Change is designed to strengthen the company’s trading position so that it can continue to operate competitively and to ensure Superquinn’s sustainability and long-term success.”
Superquinn is expected to make a loss this year as it did in 2008. In January, the retailer announced plans to seek 400 job cuts and close its store in Dundalk.
That shop has since shut and yesterday’s deal is the next phase of Superquinn’s restructuring. The redundancies are expected to cost about €14 million.
Workers will receive four weeks pay per year of service with no cap in place. Staff have two weeks to submit their applications.
Under the terms of the profit- sharing arrangement, workers will be entitled to receive up to one-third of any surplus above a profit level budgeted by the company each year.
Superquinn, which is led by chief executive Simon Burke, said it would “continue to set its own budgets annually, but they will be shared with the trade unions”.
The company said there were no plans to sell the business.
Superquinn operates 24 stores and has annual turnover of about €600 million. It was sold by Senator Feargal Quinn in 2005 to Select Retail Holdings, a consortium backed by a number of property developers.
