Labour Court recommends 5% long-service increment at Arcadia Group

The Labour Court recommended that Arcadia Group introduce a 5% long-service increment for employees with ten years’ service at the top of their salary scale. The increment would take effect when the recommendation was accepted, and the parties should seek cost offsets. If savings were identified and agreed, the qualifying period should fall to eight years in 2007. The recommendation was dated 28 October 2005. Mandate sought the increment after eight years at the top of the scale, saying long-service payments were common in retail and helped retain experienced staff. Arcadia Group argued the claim was barred by the Sustaining Progress agreement and that such increments were not standard among comparable retailers. The Court found the claim had merit and said its full cost would be minor overall.