Labour Court urges deal on bonuses for Intel work

The Labour Court has urged both sides in a row over €25m completion bonus payments for work being carried out at Intel’s Leixlip plant in Co Kildare to reach agreement.

In its recommendation on the row, the Labour Court has urged one of the country’s largest unions, the Technical, Engineering, and Electrical Union (TEEU) and the Construction Industry Federation (CIF) to make “a sustained and final effort” to reach a deal over the union’s €25m claim for bonus payments for members’ work

The Intel project is one of the largest construction projects in the country and, at its peak, employed up to 5,000 people.

Last May, TEEU, which represents around 10 building contractors on the Intel site, wrote to CIF seeking payment in lieu of notice (PILON) for all workers who were continuously employed on the site since April 7, 2014.

CIF said the payments being sought ranged from €3,200 for those who had been working on the site for three to six months to €8,000 for those employed for more than 12 months.

Talks failed at the Labour Relations Commission last year, with the dispute going before the Labour Court.

Intel funded the PILON payments when a similar claim was made by workers in 2005.

According to the Labour Court report on the issue, CIF said the contractors are not in a position to concede the new claim. In its argument, TEEU stated that previous payments have been made in recognition of the flexibility and co-operation of the workforce, stating that current workers should receive a payment in the same manner.

The union also argued that the precedent for PILON payments has been well-established over a number of years

TEEU also argued that it is inappropriate for the contractors involved to reject this claim, given the tangible ongoing benefits associated with their projects.

CIF responded that the last agreement reached with the union with regards to PILON payments was in 2005 and that, at that time, it was agreed that there would be no further claims of this nature.

CIF stated that there have been no further settlements paid to date and there are no provisions for the contractors to concede TEEU’s claim, which is estimated to be worth around €25m.