Labour Court backs Honeywell in terms dispute with union

The Labour Court supported Honeywell Engines Systems and Services in a dispute with the Technical, Engineering and Electrical Union over pay, pensions, service holidays and bonus calculations. In its recommendation signed on 2 October 2007, it said negotiations should begin on improving the terms on a cost-neutral basis. The union argued that productivity gains justified extending benefits available at the sister Technologies plant. Honeywell said those improvements formed part of an agreement for production employees at that plant, exchanged for productivity gains and reduced headcount. The Court found the two plants were separate and that there were no grounds to extend the annualised-hours conditions to Honeywell Aerospace. A separate claim about medical and sick pay schemes had been settled and was withdrawn at the hearing.