LCR23136

PARTIES:

DIVISION:

SUBJECT:

Complaint under Section 26(1) of the Industrial Relations Act, 1990.

BACKGROUND:

This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 03 April 2025 in accordance with Section 26(1) of the Industrial Relations Act, 1990.

A Labour Court hearing took place on 09 May 2025.

RECOMMENDATION:

Background to the Dispute

The within dispute arises from the loss of access to an Approved Profit-Sharing Scheme (‘APSS’) following the acquisition of the Ringaskiddy-based business by Sterling Pharma Solutions (‘the Company’) from Novartis in 2023. The APSS is a Revenue- approved Scheme accessible only to companies that trade shares on a recognised stock exchange. It is not generally available to privately owned companies.

A short-term measure had been put in place for 2023 and 2024 whereby the Company grossed-up the annual bonus payment received by the Workers in order to compensate them for the increased tax due on that payment in circumstances where the Workers no longer had access to the Novartis APSS. The Employer also availed of the opportunity during that period to investigate how a very small number of Irish headquartered private companies had been able to put in place comparable arrangements. However, it was not possible to identify any solution under Irish legislation which would permit the Company to replicate the APSS.

In those circumstances, the Workers through their trade union, SIPTU, initiated a claim for compensation for their ongoing loss. Following discussion at local level, the Parties engaged under the auspices of the Conciliation Service of the Workplace Relations Commission in September 2024 and March 2025. Both Parties put forward detailed and considered proposals at conciliation.

Labour Court Hearing

The dispute came before the Court under section 26 of the Industrial Relations Act 1990 on 9 May 2025 at a sitting in Cork. The Representatives for each side set out their positions in comprehensive terms. The Court met with each side separately to gain a better understanding of their respective positions. Having done so, the Court concluded that there remained a considerable gap between the Parties which was, in some measure, in the Court’s view, due to a deficit in information and understanding on each side.

Recommendation

In the light of the foregoing, the Court strongly recommends that the Parties engage locally to overcome the information deficit with a view to achieving a shared understanding of how the within dispute may be resolved. Following that process, the Parties may, if necessary, seek the assistance of the Conciliation Service and, thereafter, revert to the Court.

 The Court so recommends.

	Signed on behalf of the Labour Court
	Alan Haugh
ÁM	______________________
27 May 2025	Deputy Chairman

NOTE

Enquiries concerning this Decision should be addressed to Ms Áine Maunsell, Court Secretary.