MANAGEMENT at the Semperit tyre plant has rejected a Labour Court recommendation on a severance package offered to 633 workers at the Dublin factory which closes on December 6th.
The recommendation was made on Wednesday after management and unions made submissions to the court. On Thursday, it promised an early recommendation.
Management at Ballyfermot are planning to travel to the Hanover headquarters of Semperit's parent company, Continental AG, next week to review the situation". They are not planning to talk to unions or go before the Labour Court again until that meeting takes place.
The management claims the court's recommendation will bring the cost of closure to £23.5 million, which goes far beyond the amount allocated by Continental AG for the Dublin plant".
A spokesman for SIPTU said the unions "note with regret and concern the management decision. As a very minimum we would have expected that the management would have met us to discuss any difficulties they might have with the recommendation," he said.
The spokesman expressed scepticism about workers voting for the recommendation because of the decision of the management.
The court suggested that workers should receive five weeks' pay per year of service, but the management submission offered four weeks' pay per year. The court also recommends the award of a 3.5 per cent pay increase as part of the final phase of the PCW, which the management rejects.
The company claims it has "attempted to minimise the impact of the plant's closure on employees by offering a fair termination package as well as outplacement help".
Workers will meet at the plant on Monday morning and the unions intend to call on management to accept the recommendation even at that late stage".
Fianna Fail's spokeswoman on Enterprise and Employment, Ms Mary O'Rourke, said the Enterprise and Employment Minister, Mr Richard Bruton, should immediately make recommendations to Semperit's international management" following the rejection of the recommendation.
It needs to be immediately impressed on Semperit the dim view taken of companies that reject Labour Court agreements. The difference between the sides is small and Semperit should go the extra distance.