Waterford Crystal agrees 'plan for renewal and future growth'

Waterford Crystal, the Irish glassware manufacturer, concluded a new agreement on a 'plan for renewal and future growth' with its workforce in April 2002. It covers issues such as voluntary redundancies and new working patterns.

In April 2002, Waterford Crystal, the world-famous glassware manufacturing division of Waterford-Wedgwood plc, concluded a new agreement on a 'plan for renewal and future growth' with representatives of its 1,400 employees. The deal aims to 'provide a platform' for future prosperity in the two Waterford Crystal factories in County Waterford in the south-east of Ireland.

In the introduction to their new agreement, Waterford Crystal management and the Amalgamated Transport and General Workers Union (ATGWU), jointly recognise a mutual interest in ensuring the future of the company. They also agree that change 'impacts on individuals, and accordingly it is important that the parties provide appropriately for the impact of such change on employees'.

The agreement deals with issues such as surplus staff, new working patterns and compensation for loss of shift premia. In a novel development in an Irish context, it also formally recognises the realities of modern personal relationships by granting 'partners'- including same-sex partners - equal status with traditional relationships. For the purposes of the company’s medical and drugs scheme, a partner is defined as an individual with whom the employee is living 'as husband or wife'. Those who already have a husband or wife participating in the scheme may 'replace' the name of that individual with the name of a partner.

The Waterford Crystal employee relations manager, Paul Minihan, said that the agreement builds on previous agreements signed during the 1990s and reaffirms the commitment of both parties to competitiveness, 'recognising the inevitability of change and providing appropriately for the impact of that change on employees'.

Entering an important caveat, however, ATGWU’s local official, Walter Cullen, said that the union would have preferred if the issue of surplus staff could have been addressed by way of voluntary early retirement, rather than voluntary redundancy. The union has called on the company to make 'prudent provision' for dealing with any future labour surpluses in this way.

Voluntary redundancies will be provided for a limited number of craft employees in 2002 and 2003. The parting terms are based on a formula of six weeks' pay for each of service with the company in addition to normal statutory payments, with a maximum payment of EUR 121,000 (after 25 years service). The minimum payment is based on one year’s (gross) salary. A week’s pay for a typical craft worker at Waterford Crystal on a 5 X 39-hour shift is EUR 762, based on the basic pay rate and the shift rate. On this basis, the redundancy payments for craft workers with 10 years' service works out at EUR 48,768, rising to EUR 97,000 for those with 20 years service. Craft workers on a 21 X 33.6-hour shift system – on a weekly pay rate of EUR 875 – are entitled to EUR 55,548 after 10 years' service, rising to EUR 110,588 after 20 years.

The agreement also sets out the profit-share arrangements for the financial years 2001-2004. This is based on '9% of Waterford Crystal division profits', which is defined as profit after interest, tax and restructuring costs. For the duration of the four-year period, a limit of EUR 16 million will apply to total labour restructuring costs for profit-share purposes. A maximum of EUR 4 million will apply to any one year.