Labour Court Database __________________________________________________________________________________ File Number: CD90695 Case Number: LCR13126 Section / Act: S67 Parties: PFIZER CHEMICAL CORPORATION - and - SERVICES INDUSTRIAL AND PROFESSIONAL TECHNICAL UNION |
Claim by the Union on behalf of 35 workers employed in supervisory, technical and administrative positions for the payment of a lump sum of #6,000 on transfer of employment.
Recommendation:
8. Having considered the submissions from the parties the Court
is satisfied that the Company has abided by all the necessary
procedures in relation to transfer of staff.
The Court accordingly finds no merit in the Union's case and
accordingly does not recommend concession of the claim.
Division: Ms Owens Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD90695 RECOMMENDATION NO. LCR13126
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: PFIZER CHEMICAL CORPORATION
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL AND PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union on behalf of 35 workers employed in
supervisory, technical and administrative positions for the
payment of a lump sum of #6,000 on transfer of employment.
BACKGROUND:
2. The Company employs approximately 500 people at its plant in
Ringaskiddy, Cork. There are two businesses on the site - one a
chemicals operation producing citric acid as its main product, the
other a bulk pharmaceutical operation. They belong to separate
divisions of the Pfizer Corporation.
3. In July, 1990 it was announced that it was agreed in principal
by the Company's Headquarters in New York to sell the citric acid
side of the business to another U.S. Company Archer - Daniels -
Midland (A.D.M.). The workers involved with the transfer were
concerned over their future employment and on 2nd October, 1990
the Union lodged a claim for a goodwill payment of #6,000 for each
individual involved in the transfer.
4. The Company rejected the claim and wrote to all employees
involved in the transfer (there are 289 employees who will
transfer to A.D.M.) to confirm that their employment would
transfer from the closing date of sale. Included was a letter
from A.D.M. stating that it would honour existing pay and
conditions, respect all existing union agreements, collective
bargaining and consultive arrangements.
5. As no agreement was possible on the claim at local level the
issue was referred to the conciliation service of the Labour
Court on the 22nd October, 1990. A conciliation conference was
held on 31st October, 1990. As no agreement was reached the
parties consented to a referral to the Labour Court for
investigation and recommendation. A Court hearing was held in
Cork on the 5th December, 1990.
UNION'S ARGUMENTS:
6. 1. This is a unique sale of half a Corporation which is
physically dissecting long standing workforce and plant alike.
Pfizer are selling the citric acid business (which according
to Insite Magazine is enjoying a healthy trading position at
present) for a figure reported to be #500 million. While some
of this would be reinvested and paid to shareholders the
workforce are surely entitled to a share as it is through
their efforts that the Company is in this position.
2. The workers concerned will lose out on seniority as their
placings will not be as high or guaranteed due a reduction in
numbers.
3. There are workers who do not wish to transfer from Pfizer
but they have no option. This is very traumatic for the
workers as the break of contact and contract with long
established companions and employer will lead to a possibly
different future.
COMPANY'S ARGUMENTS:
7. 1. The sale of the citric acid business is in the interests
of both companies and ultimately that of the employees
concerned. A.D.M. has excellent access to competitively
priced raw materials which combined with its extensive
experience in manufacturing commodity products, will be
extremely advantageous to the success of the citric acid
business.
2. A.D.M. will engage the employees associated with the
operations purchased at Ringaskiddy, will honour existing pay
and conditions, and will respect existing Union Agreements,
collective bargaining and consultative arrangements.
Continuity of employment will not be interrupted. There are
no contractual implications at the date of transfer, other
than a change in the identity of the employer and the
arrangements comply with Regulations on the Transfer of
Undertakings.
3. A.D.M., headquartered in the U.S.A., is in the business of
processing and selling agricultural products worldwide. A
leader in soya bean processing, corn refining and wheat
milling, A.D.M. had sales of $7.9 billion and net income of
$425 million in 1989. It employs over 10,000 people and has
an excellent reputation for its fine products and its
successful business performance.
4. While the Company values its employees highly, and
recognises their substantial contribution to the business, it
has striven to effect a necessary transfer of the citric
business in a responsible manner, with the safeguarding of
employee interests a key priority. In doing so, the Company
is fully satisfied that it has met its obligations.
RECOMMENDATION:
8. Having considered the submissions from the parties the Court
is satisfied that the Company has abided by all the necessary
procedures in relation to transfer of staff.
The Court accordingly finds no merit in the Union's case and
accordingly does not recommend concession of the claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
__________________________
12th December, 1990 Deputy Chairman
M.D./J.C.