Labour Court recommends higher pay rise for Apple's production workers in Cork

Labour Court Deputy Chairman Alan Haugh has recommended that 408 Apple production operators at the tech giant’s Holyhill manufacturing facility in Cork receive an additional 1.25% increase in pay. File picture; David Creedon / Anzenberger

The Labour Court has recommended that production workers at Apple’s Cork operation receive a higher pay increase than what has been on offer by the iPhone maker.

In a recommendation concerning a pay row between Apple and Siptu, Labour Court Deputy Chairman Alan Haugh has recommended that 408 Apple production operators at the tech giant’s Holyhill manufacturing facility in Cork receive an additional 1.25% increase in pay.

The court’s recommended 1.25% pay increase is in addition to a 3% pay increase backdated to October 1 last that has been paid by Apple without prejudice to the outcome of the Labour Court recommendation.

Mr Haugh stated that the court was making its recommendation having considered the parties’ submissions in relation to pay settlements within appropriate comparator companies in the region and sector.

As part of its argument, Siptu claimed that Apple has offered pay increases of 45% from 2018 to non-union retail workers in the US but only 9.05% to the Cork production operators in an equivalent 39-month timeframe.

Siptu also submitted that Apple unilaterally applied a 3% pay increase without agreement in Cork despite WRC proposals of a 3% increase per year for three years being rejected at a union ballot.

The union stated that its members “view this as disrespectful to the process of collective bargaining”. Siptu was seeking the court to recommend a pay increase of 5.5% over a 12-month timeframe to be backdated to October 1, 2021, due to the prevailing high rate of inflation and the general increase in the cost of living since early 2022.

Siptu pointed out that at no point during the negotiations, comprising of nine local meetings and four WRC conciliation conferences, did Apple claim an inability to pay.

In response, Apple contended that the 3% pay offer for one year and a commitment to further engagement on follow-on pay phases is more than reasonable and already takes account of market conditions in October 2021.

Apple - which employs around 6,000 people in Cork - further stated that employees are already in receipt of various benefits given by Apple including a once-off payment of €900 to support home workspaces to all staff during the pandemic.

Apple stated that this was also paid to Cork-based employees despite this being an on-site production environment where there was no home office requirement.

Apple stated that it believes the union's claim for a 5.5% pay increase from October 1 last based on inflation is not sustainable and that the rate of inflation for the first half of the period covered by the proposed one-year agreement was significantly lower than 5.5%.