Guinness Ireland wants to replace its current wage payment system based on national pay increases and annual increments, with a new performance pay system for 160 staff in its Dublin-based brewery. The plan, which is still under negotiation in early June 2003, follows on from a similar change agreed for 600 Dublin sales staff in 2002. The move is part of a restructuring at the company’s historic St James Gate brewery, which includes a voluntary redundancy plan aimed at reducing the current staffing level to 120. The redundancy terms on offer are six weeks' pay per year of service, plus normal statutory entitlements.
In June 2003, Guinness Ireland is set to push further ahead with plans to replace its current pay arrangements, which are based on the traditional combination of agreed national wage rises and structured annual increments, with a new performance pay system.
Guinness Ireland wants to replace its current wage payment system based on national pay increases and annual increments, with a new performance pay system for 160 staff in its Dublin-based brewery. The plan, which is still under negotiation in early June 2003, follows on from a similar change agreed for 600 Dublin sales staff in 2002. The move is part of a restructuring at the company’s historic St James Gate brewery, which includes a voluntary redundancy plan aimed at reducing the current staffing level to 120. The redundancy terms on offer are six weeks' pay per year of service, plus normal statutory entitlements.
The company wants to phase in the new system by July 2006. Members of the Guinness Staff Union (GSU) have already backed the plan while the Services Industrial Professional and Technical Union (SIPTU) is still considering it.
The company aims to replace the graded structure among management, professional and clerical staff, with new pay maximum ranges of EUR 82,690, EUR 63,380 and EUR 46,260 respectively. These would be between 20% and 25% above the maximum of each scale. A new variable bonus scheme is also planned, encompassing the existing profit-share scheme. This would be worth up to a maximum of 20% on top of the aforementioned ranges.
The plan also includes the introduction of team working, an end to demarcation, contracting-out of several support services, new shift arrangements and a novel approach to flexible working arrangements through which staff will be able to 'purchase' additional leave or 'sell' it for cash.
The Diageo group, which owns Guinness Ireland, has already informed the unions that it is reviewing all of its operations with a view to cutting costs across its various divisions. It has said that it will consult with the unions on the outcome of the review, which is expected to be completed by June 2003.
Eurofound recommends citing this publication in the following way.
Eurofound (2003), Guinness moves away from traditional pay system, article.
&w=3840&q=75)
&w=3840&q=75)
&w=3840&q=75)
&w=3840&q=75)