Labour Court says Diageo redundancy package cannot be changed

The Labour Court recommended that Diageo and the Technical, Engineering and Electrical Union leave their agreed redundancy package unchanged and protect workers’ statutory lump sums from reductions or offsets. The recommendation was signed on 11 March 2011. The dispute involved 25 workers made redundant after rationalisation in 2009 and 2010. The union said some members were receiving 43% of the lump sum rather than 50%; Diageo said its calculation complied with legislation and that the package was costly. For future redundancies, the Court recommended that the parties negotiate a new package while preserving the statutory lump sum.