Labour Court rejects union claim that C & C should cover tax on worker allowances

The Labour Court rejected the Services Industrial Professional Technical Union’s claim that C & C (Ireland) Limited should cover tax on annual allowances paid to about 80 workers. The recommendation was signed on 9 June 1995. The workers received voucher lump sums and meal allowances twice a year under company-union agreements. After the Revenue Commissioners informed the company in early 1994 that the payments would have to be taxed through PAYE, the union argued that the company should pay the tax so workers retained the payments’ net value. The Court accepted that the tax change had reduced the workers’ financial benefits, but said the company could not be held responsible for making up the shortfall.