Unions question need for plant closures

TRADE unions representing Guinness brewers across the country yesterday warned the large-scale job cuts and redundancies proposed represented a black day for the black stuff.

Sean Mackell of the Guinness Staff Union questioned the need for the changes when Diageo, in Ireland alone, made a €250 million profit last year and is on track to make even greater profits this year.

“We do not see the point in closing down Kilkenny or Dundalk. They both stand very well against other breweries in Europe. The only rationale the staff seem to have is to grow profits even more.

“Diageo are portraying these changes as a fait accompli but they are anything but that. In documents given to staff it says they are recommendations.

“The company and the unions will be engaging in intense negotiations over the next two weeks. First and foremost we will be telling staff there will be no compulsory redundancies.”

Mr Mackell said the only good point was that the long lead-in time gave ample room for discussions and for the unions to secure appropriate severance terms.

Both sides are already in the midst of a Labour Relations Commission process around the severance terms at the company.

Last month the Guinness Staff Union threatened all-out strikes in protest at “unilateral” and unapproved changes to redundancy packages at the company. Previously if a worker over 50 years of age was made redundant, he would have immediate access to a pension as well as the payout of a lump sum. Under the changes, that worker would have no access to the pension until retirement age.

Sean Mackell said there was no doubt the company had yesterday’s announcement in mind when it introduced the new terms.

SIPTU said it will be working closely with the Guinness Workers Union, TEEU and Unite to ensure that employees’ interests are protected during the restructuring.