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