FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : C & C GROUP PLC. (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - C & C GROUP OF UNIONS (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Compensatory payment from the application of the APSS arrangement going forward.
BACKGROUND:
2. The Group is currently made up of three businesses, as follows, employing approximately 1800 workers:
Alcohol (cider, wines)
Non alcohol (soft drinks, water)
International (liqueurs, wines, spirits)
In May, 2007, the Group decided to sell its non-alcohol business (NAB) to Britvic plc. Following completion of the sale the NAB business (approximately 900-1000 workers) will be wholly owned by Britvic plc. The Unions' claim is for loss of profit-sharing and save-as-you-earn benefits plus a goodwill payment to all staff affected by the sale of the NAB. The sale was due to take place on the 29th of August, 2007. The Group sees the claim purely as a "goodwill" or "loyalty" payment and has rejected the claim.
The case was referred to the Labour Court on 30th of May, 2007, in accordance with Section 20(2) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 29th of August, 2007. Both parties agreed to be bound by the Court's recommendation.
UNIONS' ARGUMENTS:
31.The NAB is being sold for €249 million and the workers deserve a share of the proceeds. Other major companies have conceded goodwill/transfer payments in the past.
2. The sale of the NAB means that employees transferring to Britvic will not now have access to an Approved Profit Sharing Scheme (APSS) and Save as you Earn (SAYE) as agreed in 2005/2006. The loss of earnings to the workers affected will be substantial.
GROUP'S ARGUMENTS:
4.1. All employees of the Group are shareholders, many significant ones who have benefitted from a €22million free share allocation upon flotation in 2004.
2. The claim is unreasonable because it is for compensation for payments which may or may not arise and which at best are indeterminate. It is a claim for application of APSS going forward. The Unions' claim is for approximately €25 million.
3. The appropriate course of action is for the Unions to pursue profit-sharing issues with the new shareholder through established procedures.
RECOMMENDATION:
In the Court's view the two schemes at issue in this case cannot, in the circumstances pertaining, be regarded as established conditions of employment of a type which could ground a claim for compensation if discontinued. For this reason the Court does not believe that the claim, in so far as it is based on a loss of potential benefits, is sustainable. Equally, the Court does not believe that the claim, in so far as it is for a good-will payment, is justified.
For these reasons the Court does not recommend concession of the Unions' claim.
The Court notes that the question of a profit share payment in respect of the current year is yet to be decided. In the event of such a payment being made the Court recommends that those associated with the present claim should be afforded a share in the accrued entitlements based on their service as part of the Group up to the effective date of sale.
Signed on behalf of the Labour Court
Kevin Duffy
13th September, 2007______________________
CONChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.