Staff at homelessness charity St Mungo’s have ended long-running strike action after securing a 10.7% pay increase.

Workers have been taking industrial action for three months to demand an above inflation pay rise.

Unite the union has secured staff a pay increase, which works out at 10.74% based on a median wage, or £3,125 in cash terms. Most workers will also receive a one-off payment of £700.

The deal also means the lower paid workers will get a larger share of the pot and executive directors at the charity have agreed to a pay freeze for 2023/24, Unite the Union said.

“Following a vote, Unite the Union has confirmed its members have accepted the new pay offer package we put forward on 18 August 2023,” the charity’s chief executive, Emma Haddad said.

“In this offer, everyone who is on up to and including point 36 on the National Joint Council (NJC) pay scale will receive £1,200 per year as a St Mungo’s allowance in addition to the annual pay award, which will be a minimum of £1,925 this year.

“This means over 90% of staff will receive a total minimum increase of £3,125 in 2023-24. This works out as a 7-15% pay increase, depending on salary. The total cost to St Mungo’s will be just under £6m.”

The agreement also includes a number of non-pay items, including an increase in annual leave.

“This vote resolves the dispute and ends a period of unprecedented strike action, and we understand Unite is asking people to return to work on Monday 4 September 2023,” Haddad added.

“We are relieved with the outcome as we know this has been a difficult time for everyone involved. We look forward to working together with our colleagues and our partners as we continue to support people recovering from, or at risk of, homelessness.”

Unite general secretary, Sharon Graham added: “This was a hard-fought battle resulting in victory for St. Mungo’s workers who are dedicated to helping the homeless.

“The workers took action because they were under huge financial and mental pressure and they weren’t being listened to by management.

“Unite will continue to defend workers when employers refuse to do so, in the fight for better jobs, pay and conditions for our members.”

St Mungo’s workers’ pay is normally tied to local authority pay rates under the NJC agreement but the strike action has, for the first time, delivered a pay increase above the NJC rate.

The strike began on 30 May. The dispute involved Unite members across southern England including in London, Bristol, Brighton, Oxford, Bournemouth and Reading.

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