Mandate said in a statement that the wage increase is not good enough and falls below trade union guidance on wage increases.

It accused the retailer of refusing to pay maternity and paternity leave.

The union’s statement comes after the Irish Congress of Trade Unions’ Private Sector Committee issued guidance to officials to seek increases up to 6pc in 2026.

Mandate quoted a Dunnes Stores worker, who did not want to be named, in a statement outlining their financial struggles.

“I work hard every week and I’m proud of my job, but a 3pc pay increase doesn’t go far when everything else keeps going up,” said the worker.

“Rent, food and childcare all cost more. Many of us are struggling to make ends meet, and it’s frustrating to see the company ignore issues like paid maternity and paternity leave. Workers shouldn’t be penalised for starting a family or getting sick. We just want fair pay and basic supports that recognise the reality of our lives.”

Today’s News in 90 Seconds – Tuesday, December 16

The Mandate statement said workers continue to experience significant cost-of-living pressures, with rising prices for essentials such as food, energy, housing and childcare putting a strain on household budgets.

“Against this backdrop, the Irish Congress of Trade Unions has recommended private sector pay increases in the range of 4pc to 7pc to prevent workers from experiencing a real-terms cut in pay,” said the statement.

Eoin Coates, divisional organiser at Mandate, said a 3pc increase is simply not good enough. “It does not reflect the reality facing Dunnes workers,” he said. “Inflation continues to erode wages, and this increase falls well below Ictu’s recommended pay range for the private sector. In real terms, many workers will be left worse off.

“Dunnes workers have been very clear about what they need. Pay is important, but so too are sick pay protections and family-friendly policies, which most of Dunnes’ competitors have already implemented. The continued refusal to introduce paid maternity and paternity leave shows a failure to support workers at critical points in their lives. Retail workers should not have to choose between their income and their family.”

He said a pay and benefits claim had been overwhelmingly endorsed by Dunnes workers. Mr Coates said key aspects of the claim including improved sick pay, paid maternity and paternity leave and retention of a staff discount on retirement, have not been addressed.

Mandate sought eight weeks of fully paid sick leave.

Mr Coates said workers are frustrated and called for talks with the company.

The Irish Independent has contacted Dunnes Stores for comment.