Backing a management proposal, the Labour Court agreed in a recommendation issued on 19 June 1997 that "cellular-based manufacturing" should be introduced at the Moulinex-owned Krups Engineering plant in Ireland's mid-west region, in order to safeguard the future of the plant where 600 are employed. Cellular manufacturing involves the organisation of production in cells of four to six people, replacing current assembly-line methods. This is the latest in a series of cost-reduction measures at the plant since it was taken over by the French-owned Moulinex in the early 1990s. It is one of 20 Moulinex companies which produce a broad range of domestic appliances, located in France, Spain, Germany, Egypt, Mexico and Ireland.
Ireland's Labour Court agreed in June 1997 that the proposed introduction of cellular manufacturing at the Moulinex-owned Krups Engineering plant in the mid-western region is essential for the survival of the company and the 600 jobs there.
Backing a management proposal, the Labour Court agreed in a recommendation issued on 19 June 1997 that "cellular-based manufacturing" should be introduced at the Moulinex-owned Krups Engineering plant in Ireland's mid-west region, in order to safeguard the future of the plant where 600 are employed. Cellular manufacturing involves the organisation of production in cells of four to six people, replacing current assembly-line methods. This is the latest in a series of cost-reduction measures at the plant since it was taken over by the French-owned Moulinex in the early 1990s. It is one of 20 Moulinex companies which produce a broad range of domestic appliances, located in France, Spain, Germany, Egypt, Mexico and Ireland.
The main trade union at the plant, SIPTU, has agreed with the proposed change but has rejected amended pay rates for employees working within the new cells. The company has proposed that workers employed prior to January 1995 should be paid a basic weekly rate of IEP 208.34 with those employed after that date to be paid IEP 179.34 per week.
The Labour Court also recommended that outstanding payments due under IrelandÕs previous national wage agreement, the Programme for Competitiveness and Work (PCW) should be paid on an amended basis and that loss of earnings under the new system should be compensated for in accordance with a two-year buy-out formula.
The company had told the Labour Court that two of its plants in France will close this year and that the proposed new production methods were essential for the survival of its Irish plant. By raising objections to the proposed changes, the union - the company alleged - was making it difficult for management to market the plant as a sound commercial proposition for future investment.
The union said that in recent years it had cooperated with pay freezes, new entry rates of pay and supported various new working and production methods, such as JIT, SMED and Kan-Ban without securing additional financial compensation.
Eurofound recommends citing this publication in the following way.
Eurofound (1997), Court backs cellular manufacturing at Krups, article.
