Coca-Cola workers set to strike

Workers at Coca-Cola HBC are set to strike in a row over plans to outsource jobs, Siptu said today.

The union served strike notice on the company after the firm decided it would transfer and outsource the jobs as part of a plan to re-organise its distribution and warehouse network in the south of Ireland.

In a statement today, Coca-Cola HBC said a review of its logistics infrastructure had revealed that the current operational cost within the firm is exceptionally high when measured against the industry in Ireland and other comparable countries within the group.

"The company entered into consultation with its employees and trade union representatives. At the union's request, a number of alternative options to full outsourcing were examined by the company to determine if a suitable alternative existed," it said.

"After a significant number of meetings and detailed analyses, no alternative option could be agreed and as a result, the decision has been made to proceed with outsourcing the logistics operation in Republic of Ireland."

About 130 employees in warehousing and distribution in Dublin, Cork, Tuam, Tipperary, Waterford and Killarney are affected by the decision.

Both sides attended the Labour Relations Commission yesterday, but no agreement was reached. The union claims the firm refused to discuss alternative proposals from Siptu representatives, which included negotiation on new terms and conditions and an acceptable redundancy package for workers.

“Siptu members by a substantial majority have voted for strike action if the company seeks to enforce redundancies and outsource members jobs without agreement,” the union's national industrial secretary Gerry McCormack said.

The union has accused new management of "trampling" years of partnership and co-operation at the operation.

“Having agreed initially to attend the LRC and recognise SIPTU’s position on a number of issues, Coca Cola HBC has now stated that it is only willing to talk about transferring our member’s jobs to third party operators and redundancies,” Mr McCormack said.

“As far as our negotiating committee is concerned the company is now in breach of agreed procedures. It is the first time our members have engaged in strike action since the company began trading in Ireland over fifty years ago."

However, the company accused the union of disengaging from the process "before meaningful discussion could commence" at the LRC.

"We appreciate that this is a difficult time for those affected however this is a necessary step in order to ensure the future viability of the business and safeguard the positions of as many employees as possible," the managing director of Coca-Cola HBC Ireland Gokhan Bilgic said.

According to the company, employees have been a package of six weeks per year of service up to €125,000 or the chance to move to one of the third-party firm the operations will be outsourced to.

"Strike action is detrimental to everybody and we would like to resume engagement with Union representatives as soon as possible in order to agree comprehensive transition and redundancy terms," Mr Bilgic said.