The Labour Court recommended that Dairygold and the Services Industrial Professional Technical Union negotiate a new agreement on workplace procedures and redundancy selection within two months. The Court also recommended that there be no compulsory redundancies during that period. Dairygold employed about 2,000 staff.
The union opposed changes made without agreement and said it was willing to negotiate. Dairygold said it needed redundancy selection based on skills and competencies, rather than seniority alone, and that it could address loss-of-earnings claims when they arose.
For anticipated loss of earnings over two years, the Court recommended payment of 25% up front, 50% after one year and the remaining 25% after two years, provided the anticipated loss had occurred. It also recommended no changes to employment terms without agreement during the interim period. Reasonable changes to work practices would require five working days’ notice and consultation with affected employees and the union. The recommendation was dated 8 March 2004.