Pfizer-owned concern concludes partnership deal

An agreement on partnership and continuous improvement, which includes significant improvements in benefits for workers, was reached in September 1997 between Ireland's largest union, SIPTU, and management at Howmedica International, a medical products manufacturer and part of the Pfizer Group.

Members of the SIPTU trade union at Howmedica International, the manufacturer of surgical implants owned by the USA-based Pfizer Group, concluded an agreement with management in mid-September 1997. The deal provides for improved benefits, a more direct form of employee participation based on partnership and active employee support for "continuous improvement" measures. Some 200 SIPTU members are employed at the plant, which is located in the mid-western city of Limerick.

The agreement must be seen in the context of the current Partnership 2000 agreement at national level (IE9702103F), which broadly encourages the extension of partnership arrangements at enterprise level so as to "enhance the competitiveness of firms, the quality of the work environment and the access of employees to lifelong learning".

The immediate benefits of the Howmedica agreement for the workforce include a once-off "partnership premium" of IEP 1,000 for each employee and the upgrading of general operatives to a new multiskilled rate for which they receive a 4% pay increase. Those who are already on this rate receive a lump sum of IEP 750 instead. Meanwhile, a joint management/union reward and remuneration task team is to explore an "appropriate" gainsharing scheme, subject to improved performance indicators. Other additional benefits include a new share purchase scheme and improved health cover provision.

A "partnership forum" is to be established, made up of representatives of senior management and SIPTU. A representative of the Irish Productivity Centre- a neutral state-run body which advises employers and unions on productivity issues - will act as a "partnership facilitator" to the forum and provide "impartial and professional advice" on the design and implementation of a continuous improvement programme.

The agreement defines partnership as an active relationship "based on recognition of common interests to secure the competitiveness, viability and prosperity of the enterprise ... the common ownership of challenges, involving the direct participation of employees/representatives and an investment in their training, development and working environment".

While the union has agreed to actively support and encourage employee involvement in continuous improvement, the agreement clearly states that its role in the negotiation of terms and conditions "is in no way diminished".