Firm seeks to overturn Labour Court pay decision

A pharmaceutical company has brought legal proceedings aimed at overturning a Labour Court decision directing it to pay higher wages to its employees.

Fournier Laboratories Ltd, which employs 180 people in Carrigtwohill, Co Cork, and does not recognise trade unions, claims the Labour Court misdirected itself in the way it decided there was an industrial dispute between the company and Siptu, and in how it made determinations on pay and conditions of employees.

The company's challenge comes "in the slipstream" of a recent Supreme Court decision in favour of Ryanair which dealt with how new industrial relations legislation, designed to protect workers in non-unionised companies, should be applied, Tom Mallon BL, for Fournier, said yesterday.

Fournier, on the basis of the Supreme Court findings in the Ryanair case, is entitled to a "higher level of hearing" of the issues raised before the Labour Court, counsel said.

He secured leave from Mr Justice Michael Peart to bring judicial review proceedings aimed at overturning various Labour Court findings of January 18th last relating to matters at the company.

The judge also restrained any attempt to enforce the Labour Court findings pending the outcome of the judicial review challenge.

The Labour Court made the determinations after certain issues at the company were referred to it by Siptu.

The Labour Court found there was a trade dispute at the company and that Fournier did not engage in collective bargaining within the meaning of the industrial relations legislation of 2004. It also directed the company to pay higher rates of pay to its employees and to put in place internal procedures to address internal grievances and disciplinary matters.

The Labour Court also made a finding requiring the company to recognise Siptu for the purpose of representing employees during disciplinary and/or grievance procedures.

In its challenge, Fournier claims the Labour Court failed to conduct an inquiry into the existence of the alleged trade dispute and had accepted the allegedly unsubstantiated assertions of Siptu relating to matters at the company.

The company claims its rates of pay and conditions are "in full conformity with comparable rates of pay and conditions of employment payable to other comparable workers in the same industry, both locally and nationally". It says its pay structure involves a system of paying to individuals rates of pay "which reward those individuals' productivity and success" and that it is not its practice to pay blanket rates of pay without regard to an individual's contribution, experience and productivity.

It also claims it pays appropriate rates for overtime, provides appropriate levels of annual leave and also provides an opportunity for additional pay under a company bonus and profit-sharing scheme.