Gerry Light, assistant general secretary of the Mandate trade union, yesterday confirmed that management has informed workers of the increase.
Mr Light said Mandate lodged a pay claim in April and that the Labour Court had scheduled a hearing on the claim for December 1 next.
Confirmation of the latest pay increase follows recent data from research group, Kantar Worldpanel showing that Dunnes has caught up with Tesco to become joint number two player in the Irish grocery market, with a 21.6% market share.
Mr Light yesterday welcomed the pay increase, which is to be backdated to October 3.
Mandate, which represents 4,500 Dunnes workers, said the majority of all Dunnes workers are still on low-hour contracts and this insecurity over hours needs to be addressed immediately.
Mandate said that Dunnes still has the power to wipe out workers’ 3% pay increase by not awarding workers secure hour contracts.
The union said that Dunnes workers can have their hours slashed at the sole discretion of a local manager, potentially reducing their income from €400 per week to as low as €150 per week.
Mandate is seeking secure hour contracts in Dunnes Stores which would give workers certainty over their income.
“Any pay increase must be implemented in conjunction with secure-hour contracts to ensure workers have certainty of earnings from week-to-week. If Dunnes refuse to do the right thing by their workers, we will pursue this issue through political and legislative avenues,” Mr Light said.