A group of former Glanbia employees have said they will initiate legal action against the company for breach of contract in relation to non-payment of pension increases.
The group, comprising 40 employees of Waterford Foods before it merged with Avonmore in 1997 to form Glanbia, says it has not been paid an agreed 3.5 per cent annual pension increase since January. Glanbia had been paying the annual increase to the pensioners since 1992, when the Waterford management agreed to waive a 4 per cent wage increase in lieu of a 3.5 per cent increase in pension payments.
However, Glanbia recently agreed a revised funding proposal with the Pensions Board and unions, which included the removal of future guaranteed increases to pensions in payment for all members. The company has a pension deficit of about €200 million.
The group, which includes former senior management and technical personnel, said it had established a “fighting fund” to help meet the costs of a High Court action against the company.
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