Penneys has agreed to give its staff a 3 percent pay rise. Management are also scrapping a lower rate of pay for under-18s, and will guarantee workers a minimum number of hours.
Mandate trade union members there voted by 76 percent in favour of a new employment deal.
Contained in the agreement is a new banded hours structure, which the union says will guarantee workers a minimum threshold of hours of work, so that they have a steady level of income which will put "decent work on the agenda for their workforce".
The company were also looking to introduce a new lower wage scale for new entrants. But this was rejected by Mandate and the position of the union was upheld in a recommendation from the Labour Court.
Penneys employs some 4,500 people in Ireland.
Mandate Divisional Organiser is Joe Donnelly. He says it is vital people working in retail take home a decent wage.
"There was no use getting a wage increase of 3 percent if your houses were then going to be cut - so there's two elements to it" he said.
"So this wage increase is a real wage increase right across the board" he added.
