Dunnes Stores has agreed to implement a 3% pay increase for staff, according to the trade union Mandate.

The retailer, which operates more than 143 stores in Ireland and Britain, will apply the increase to earnings from June onwards.

Mandate, which in April launched a claim for Dunnes Stores workers, has welcomed the commitment.

However it said other aspects of workers’ terms of employment needed to change to ensure the cost of this increase was not made up for by a cut in staff hours.

The union said it has referred its claim to the Labour Relations Commission and called on Dunnes Stores to engage directly or through the LRC process.

Separately, workers at Kingspan's plant in Kingscourt, Co Cavan are set to receive a pay increase following a Labour Court recommendation in October.