Labour Court recommends €400 payment for Diageo managers who took cash instead of company cars

The Labour Court recommended on 28 March 2006 that Diageo Ireland pay €400 to each senior manager who chose a cash equivalent instead of a company car, as a goodwill gesture. The Guinness Staff Union sought compensation after the annual allowance for affected managers was reduced from €12,825 to €11,525. Diageo said the policy changes were economically necessary and that increased bonuses had more than compensated for the loss. The Court did not recommend the union’s compensation claim, saying the cash-equivalent policy was fair and reasonable. It noted that the changes were made before agreement and without sufficient consultation, and recommended the €400 payment in full and final settlement.