Iceland depot workers come in from the cold

The T&G general union has negotiated lump-sum payments and enhanced weekend rates for drivers and warehouse workers at supermarket chain Iceland's distribution depot in Enfield - the only workers in any of the company's UK operations to get any form of pay increase this year.

Although basic hourly pay for the drivers and warehouse workers will remain at £10 and £7 respectively, they will receive lump sums of £540 (drivers) and £360 (warehouse workers). The next pay anniversary date has been brought forward by five months to 1 March 2006, meaning that the lump sums are worth about 4% of salary over the seven months of the deal.

And employees will for the first time receive overtime rates above the basic hourly rate if they work at weekends. Saturday working will be paid at time-and-a-quarter, and Sundays at time-and-a-half.

Staff dissatisfaction with the depot's productivity bonus scheme has also led to the introduction of a new scheme. Peter Kavanagh, the T&G senior regional industrial organiser who negotiated the settlement in conjunction with local shop stewards, said he was "confident" that the scheme will work.

The deal was struck and approved at the start of December following a vote for strike action by the depot's workers, who are employed by contractor Wincanton.

"This was a difficult pay round, because of the pay freeze in force at Iceland and the nature of the Wincanton contract, but the T&G proved its determination to win and grow in the workplace," said Kavanagh. "We're very pleased we didn't have to resort to strike action."