The Labour Court recommended that LM Ericsson Ireland Limited give the relevant employees a collective choice over the Christmas payment. The recommendation was dated 26 April 2005: either a 2% bonus for 2004 and subsequent years, or a lump sum of 4% plus five extra days’ annual leave for 2005 and subsequent years.
LM Ericsson Ireland Limited had paid annual Christmas bonuses, while the Services Industrial Professional Technical Union sought restoration of the payment after the parties agreed to forgo it in 2001 and 2002. The company proposed replacing the bonus with additional leave, citing a regional pay freeze and cost reductions.
The Court said the established bonus was 2%, not the union’s claimed 4%, and that the payment could not be replaced without agreement. It recommended the collective choice between the two options.