Court supports Eason’s pay cuts

The Labour Court has recommended that Eason’s 800 staff accept pay cuts as part of a plan to sustain the viability of the books-to-stationery retailer.

However, as part of its recommendation, the Labour Court has stated that the pay cuts should remain in place until April 30, 2016, when workers’ current rates of pay will be restored unconditionally.

The retailer’s cost-cutting plan has come before the Labour Court after workers in April rejected Labour Relations Commission proposals for pay cuts of between 4% and 10%.

Staff voted against the pay cuts by a ratio of three to one.

As part of its cost-cutting plan, Eason management is hoping to reduce its overall costs by €2.5m by various measures including pay reductions.

In its argument to the Labour Court, Eason’s “contends that failure to implement the agreed proposals will have a detrimental effect on the survival of the business that is currently operating in extremely difficult market conditions”.

The bookseller points out that “the urgent requirement for the proposed reductions has been endorsed by two independent financial assessors and furthermore has been agreed to by the unions”.

Eason’s stated that it was seeking agreement on its proposals so that they may be implemented without further delay.

In response, Siptu and Mandate unions contend that the contribution sought from its members is “disproportionate” and point out that its members have outrightly rejected the company’s cost reduction proposals and strongly oppose any reduction in pay.

The unions also contend “that there is no guarantee that the company’s proposed plan will allow the company to emerge from its current financial position”.