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June 2001

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Subject:
From:
"Bradley C. Kadel" <[log in to unmask]>
Reply To:
Alcohol and Temperance History Group <[log in to unmask]>
Date:
Fri, 1 Jun 2001 13:25:02 -0500
Content-Type:
multipart/related
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Irish Newspapers - Irish Independent Online -Sunday Independent
 
      
      
      
      You are here:Home > News > Irish Independent > National News Issue Date : Thu May 31st 01 
            
      

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                        Champagne redundancy deal woos Guinness workers 


                  GUINNESS staff were raising a glass last night to a remarkable redundancy deal. 



                  The Dundalk workers voted four-to-one to accept pensions at 45, lump sums of up to £137,000, free beer, health insurance and scholarships for school children for the next 10 years. 



                  A total of 92 of the 140 workers voted on the multi-million pounds redundancy package - one of the most lucrative ever negotiated in Ireland.



                  It will mean the closure of the beer packaging plant in Dundalk at the end of July. The plant was due to close last month. However, that was postponed after a strike over the Easter period. 



                  Guinness has also agreed to make a special £5,000 contribution to the staff pensioners' club in compensation for the closure of the factory pub used by staff in Dundalk. This was a popular spot for cut-price beer on Friday evenings.



                  In addition to the continuing weekly beer allowance, some staff are also guaranteed a Christmas and mid-summer hamper of drink. A company spokesman said that beer allowances were common in the industry and worked out at about 14 bottles a week. The special hampers are provided in lieu of seasonal parties for the workers.



                  The pension part of the deal alone will cost the company £14.5m Despite having left the company, staff will continue to qualify for a special 'death-in-service' payment over the next 10 years.



                  Some employees will also be able to boost their pension entitlements with a notional service covering the next 18 months. Even though they will not be employed, it will count as pensionable work. 



                  The complicated deal, with lump sums varying from £37,000 to £137,000 for those not entitled to a pension, was agreed at the Labour Relations Commission (LRC) following weeks of negotiations. 



                  There is a wide choice of pension options with staff aged between 45 and 50 offered a £60,000 lump sum and a pension of £17,500 a year after they reach 50. 



                  According John King, the SIPTU representative on the Joint Union Forum, the 92 processing and craft union workers voted by 80pc to 20pc in favour of the redundancy package. However the ATGWU estimated the vote was carried by a 70pc/30pc majority.



                  The remaining employees, members of the Guinness staff union, will be balloted before the end of the week.



                  Two months ago a strike by Guinness staff collapsed when they failed to secure the backing of many clerical, sales and administrative employees but it led to a postponement of the planned closure and further intervention by the LRC.



                  Last year the joint union forum commissioned a study of the planned closure which conflicted with the company position that the Dundalk closure would provide savings of £8m a year compared to £5m if the Belfast beer packaging plant was closed.



                  The union forum, representing the ATGWU, SIPTU and craft unions, feared that the closure was a prelude to the ending of operations in Waterford and Kilkenny. Last night one union source said that the Dundalk redundancy deal will be so expensive that it might force management to reconsider whether it could afford further closures.




                  Gerald Flynn Industrial Correspondent




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