Greencore to ignore court over lay-off pay

GREENCORE has said it is not prepared to honour the Labour Court’s recommendation on the amount of redundancy pay it should give the workers which it made redundant in North Cork when Irish Sugar production ceased last May.

The company yesterday said the redundancy package it offered to staff in Mallow complied fully with and emanated from the company/union agreement on redundancy and that it was not prepared to pay the amount the Labour Court recommended. That statement came after the court clarified its position on the matter to both sides for the third time.

The workers quoted a letter they received from the Labour Court in which it said it “did not support the position contended by the company” and that the staff on annualised hours should have their ex-gratia lump sum calculated by reference to their full adjusted salary applicable at the time of redundancy plus 20% as provided for in the company/union agreement.

However, in response, the Irish sugar producer said it rejected the unions’ claim for payment of the shift premium and overtime both in the salary and in the additional 20% bonus.

“It is clearly an attempt to get paid on the double and is in breach of the company/union agreement. The company will not pay on the double under any circumstances,” a spokesman said. “Irish Sugar is clear on its obligations as per the company/union agreement and as previously stated, it sees no merit whatsoever in any attempt at clarification by the Labour Court.

“The Irish Sugar redundancy package which has been described by the Labour Court as one of the ‘better negotiated severance settlements achieved in recent years’, will see an average severance payment of €145,000 paid to former workers. A significant number of former workers have already collected their full redundancy payment cheques and cheques remain available to the remaining former workers who haven’t as of yet arranged to collect them.”

Former worker Kieran Buckley said the company was backtracking on its position that it wanted to honour the Labour Court recommendation.

Last night, at SIPTU’s Western Region Conference in the Great Southern Hotel in Killarney, its general secretary, Joe O’Flynn said: “Management should now accept the recommendation and look after the workers who helped to make Greencore the successful company that it is today. I don’t think the additional cost will dent the almost €100 million compensation packaged offered by Government.”