LCR23301

PARTIES:

DIVISION:

SUBJECT:

A Referral 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 2nd December 2025 in accordance with Section 26(1) of the Industrial Relations Act, 1990.

 A Labour Court hearing took place on 1st July 2026. 

RECOMMENDATION:

The matter before the Court is a joint referral from the parties in a dispute about pay.

The parties have failed to reach agreement on pay increases to apply following the expiry of a pay agreement on 31 January 2025. The matter was the subject of two conciliation conferences under the auspices of the WRC. A proposal to award a 2% pay increase for 2025 was balloted on and rejected by the Union members.  A revised proposal to award a 2% increase and a €125 Christmas voucher which would replace the existing Christmas hamper scheme and apply to employees who were not participants in the company bonus scheme was also balloted on and rejected by the Union members.

The parties have requested that the Court make a recommendation on a two year pay deal to apply with effect from 1 February 2025.

Union Arguments:

The Union seeks a 5% pay increase backdated to February 2025, with a further 5% to apply from February 2026. External conditions and cost of living increases have placed their vulnerable members, who are in and around minimum wage, under extreme pressure. The claim is proportionate and reasonable, having regard to the company's financial position and profitability. It is also in line with established competitors in the sector.

Company Arguments:

The Company proposes a 2% pay increase for 2025 and a 2.5% pay increase for 2026, together with an annual Christmas voucher of €175 for eligible employees outside the company bonus scheme. The company faces strong ongoing competition with considerable cost pressures and a significant slowdown in growth. The Company's proposal endeavours to acknowledge the current challenge in business environment. Furthermore, the 2025 pay deal has been accepted and paid to other employees in the company.

Recommendation:

The parties have provided comprehensive written and oral submissions to the Court, which the Court has carefully considered. Having regard to the submissions made and taking account all of the circumstance of this case, the Court makes the following recommendation.

The Court notes the business environment challenges highlighted by the Company and that the Company shared with the union (but not the Court) confidential financial information to support its position in this regard. The Court further notes the protracted nature of the negotiations between the parties and the fact that two proposals which were the subject of a ballot by Union members were overwhelmingly rejected.

The Court is satisfied to confine its recommendation to a pay increase to apply for 2025 and 2026. Having regard to all of the circumstance of this case, the Court makes the following recommendation.

Pay increase

• a 2.5 % increase in pay to apply effective from 1 February 2025.
• a 3.0 % increase in pay to apply effective from 1 February 2026.

The Court so recommends.

	Signed on behalf of the Labour Court
	Katie Connolly
JNF	______________________
08/07/2026	Deputy Chairman

NOTE

Enquiries concerning this Determination should be in writing and addressed to Ms. Julie Nicholl-Flood, Court Secretary.