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  • Work organisation

Ireland

• ESB cost and competitiveness review (CCR) [ EN size 67 kb ] [ FR size 62 kb ]

  This case involves the negotiation of a reorganisation agreement entitled the cost and competitiveness review (CCR) within an Irish Semi-State company, the Electricity Supply Board (ESB). The main motivation for an agreement derived from an EU directive on competition in the electricity industry. The process of negotiation lasted some four years from 1992 to 1996 and involved a number of stages. The early stage was concerned with the identification of the issues, with a fact-finding team from union, management and government undertaking a number of international visits to compare production costs and operating systems in different countries. A subsequent stage was concerned with the negotiation of voluntary redundancies and early retirement provisions, which led to the loss of some 2,800 jobs and involved work reorganisation. Severance terms were exceptionally generous and workers were also promised a five per cent stake in the company. Some jobs were preserved, notably in peat generating stations. The agreement ended in 1999 and the company is now seeking a new agreement. They require a further 2,000 redundancies, concentrated in the generating section, and cost savings of some IEP 300 million.

• Irish Cement Ltd [ EN size 49 kb ] [ FR size 45 kb ]

  This case involved Irish Cement Ltd., which holds a dominant position in the supply of cement in Ireland. The main focus of the agreement was the negotiation of an annualised hours arrangement. The negotiations took place on a phased basis from 1994 to 1999 in its two plants and across different grades of employees. The process nature of the industry and seasonal working made annual hours especially appropriate for the company. The outcomes of the various agreements seem positive, with management reporting significant improvement in the work environment. The unions achieved an income free from the fluctuations of overtime working, and a reduction in working hours as part of the agreement. The company, on the other hand, was able to address their cost base and achieve the early retirement of some workers, with new workers being hired on different terms. Any long-term effects of this two tier arrangement are unclear at this stage.

• Howmedica [ EN size 49 kb ] [ FR size 44 kb ]

  This case focuses on the operation of a formal partnership agreement arising out of the terms of the national agreement negotiated in 1997, Partnership 2000. This agreement had led to some difficulties and its operation was complicated by the takeover of Howmedica by Striker. Striker is an American company, which was perceived by employees as having an anti-union approach in the USA. The agreement was designed to promote continuous improvement, cost reductions and a culture change, which they had failed to achieve in a unilaterally introduced World Class Management (WCM) programme. The agreement also provided for substantial benefits to employees. At the time of conducting the research (1999) the company had experienced its first unofficial industrial action ever. This action arose out of a company proposal for 12 redundancies, which the Services Industrial Professional and Technical Union (SIPTU) contended should have been the subject of discussion with them while the company was of the view that the proposed redundancies were covered by prior redundancy arrangements. There were considerable differences of opinion on the effectiveness of the agreement at the time of interview.

• GLANBIA (Avonmore-Waterford group) [ EN size 49 kb ] [ FR size 45 kb ]

  The case followed a merger between Avonmore Foods Plc. and Waterford Foods Plc., which threatened substantial redundancies. An attempt was made by the unions involved to approach this from a collaborative arrangement which would see the merged company maintaining jobs through efforts to expand its business - in other words, from the perspective of an employment pact. The company rejected this, as its main concern was to reap the organizational benefits of reduced operating costs, through a rationalization of production facilities and a reduction in the number of employees. The employment pacts approach would not have yielded these improvements within any realistic time frame. The negotiations on the redundancies were conducted within the traditional framework in Ireland of a requirement that redundancies be on a voluntary basis and that enhanced redundancy compensation be paid. The union achieved an overall compensation of six weeks pay per year of service in addition to the statutory requirements. There were, however, some elements of an employment pact to the agreement: the company provided for a local support fund of some IEP 2.0 million to enable the funding of jobs locally; it also agreed to the retention of some jobs and to the consolidation of temporary jobs.