Diageo bucks trend and agrees to honour 2.5% wage increase

DESPITE an increasing trend among employers towards a refusal to countenance pay increases, Guinness maker Diageo has agreed to a 2.5% rise due to a number of its staff under the national wage agreement.

Those staff who are not subject to that agreement are to receive an average of 1% pay increases plus individual bonuses, based on performance, of between 5.8% and 10.2%.

According to Industrial Relations News the bonuses are slightly lower than those offered last year. Nevertheless, it pointed out that sales of Guinness products held reasonably well over the last 12 months in Ireland, given the economic climate, and sales internationally were better.

Separately Guinness Staff Union members have voted by a three to one majority to back a severance deal agreed some weeks ago for about 100 voluntary redundancies among the staff grades.

Meanwhile, other Irish companies would appear to be feeling the pinch and are pushing for cuts in their staff wage bill. The Connacht Gold Co-Op has begun action at the Labour Relations Commission seeking pay cuts of up to 10% for 140 of its staff.

In a further blow to staff it has also indicated that it will not be paying the 3.5% due to all 300 unionised staff, including non-salaried workers, under the first phase of the national wage deal even though it had agreed it would make the payments in a pay-pause deal with SIPTU.

Meanwhile, in spite of a warning from SIPTU that any pay cuts would be contested, the Dublin Airport Authority has told staff unions a 10% pay cut is being considered as it tries to achieve €40m in savings.

The company, which runs all three main airports, has suspended a voluntary redundancy scheme which it had been hoping would account for the lion’s share of the efficiencies needed. It is understood that it only achieved €20m in savings.

Other options put forward by management include outsourcing, redundancies and the buy-out of certain conditions.