
CD/25/703 | RECOMMENDATION NO. LCR23230 |
INDUSTRIAL RELATIONS ACTS 1946 TO 2015
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
DANONE NUTRICIA
(REPRESENTED BY IBEC)
AND
132 Operatives
(REPRESENTED BY SIPTU)
DIVISION:
| Chairman: | Ms Connolly |
| Employer Member: | Mr O'Brien |
| Worker Member: | Ms Treacy |
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 December 5th, 2025, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on February 11th, 2025.
RECOMMENDATION:
The matter before the Court is a claim by SIPTU for an increase to pay and benefits on behalf of 143 members employed at the Macroom site. A previous pay deal between the parties expired on 31 December 2023. The company has a total of 236 employees on site, where it has recognition agreements with SIPTU and Connect. The company operates another plant in Wexford.
Union Position
The union’s pay claim for 16.5% over a 4-year period, with improvements to conditions of employment relating to pension, leave and bonus/vouchers,is both reasonable and affordable. The company is highly profitable. The accounts of the company filed in Ireland are consolidated files of the parent company and indicate a profit of €2.1 billion in 2024 worldwide – the highest in the last five years.
The company is in a healthy position financially and operationally at the Macroom site. The profitability and operational strength of the Macroom site is ultimately delivered by the workers. The company has sought to transfer a pay agreement from the Wexford site. SIPTU do not negotiate on behalf of members in the Wexford site.
The cost of living has increased significantly in recent years and continues to erode family finances. The Union claim, while above the average achieved in other employments, is justified given the performance of the company. The company is a market leader and must remain so in terms of pay.
Company Position:
The company pays excellent pay and conditions which are reflected in the low staff turnover rates of 4% per annum in grades represented by SIPTU.
The Union’s initial pay claim was completely excessive and out of line with all industries in dairy, food and biopharma. Whilst the Company has no intention of interfering with union business, the size of the union committee has made it impossible to make clear and sustainable progress during negotiations.
While the Company is profitable, over the last ten years labour costs have increased significantly on site. The Company cannot entertain any proposal which would have knock on effect to existing agreements with other trade unions or at other sites.
Recommendation
The Court has given careful consideration to the submissions made at the hearing.
Having regard to all of the circumstance of this case, the Court makes the following recommendation.
Pay - An increase of 16.25% to apply over a four-year period as follows:
- January 1st, 2024 – 5%
- January 1st, 2025 – 4%
- January 1st, 2026 – 3.75%
- January 1st, 2027 – 3.5%.
Annual leave: - A4.5 multiplier for annual leave for all employees to apply as outlined in the company proposal.
Pension: - 5% employee contribution allows 10% employer contributions after 5 years (voluntary).
Bonus: The Court is not in a position to make a recommendation in relation to bonuses at this time.
Finally, the Court notes the protracted nature of the negotiation process in this dispute. It is clear that the capacity of the parties to find a resolution to the dispute was affected by ongoing changes to negotiating teams. The Court notes that it is in the interests of good industrial relations that parties engage in a constructive manner that allows for the timely resolution of disputes. The Court recommends that the parties undertake a joint review on how to improve the local engagement process.
The Court so recommends.
| Signed on behalf of the Labour Court | |
Katie Connolly | |
| AR | ______________________ |
| 19 February 2026 | Deputy Chairman |
NOTE
Enquiries concerning this Recommendation should be in writing and addressed to Mr Aidan Ralph, Court Secretary.
