Labour Court recommends bonus scheme extension at Castolin Eutectic

The Labour Court recommended extending Castolin Eutectic Ireland Limited’s Partnership Bonus scheme to 31 August 2019 and starting a new scheme on 2 September. It also recommended a goodwill gesture payment for the years ending 2019, 2020 and 2021. The recommendation was signed on 25 July 2019. The Services Industrial Professional Technical Union, representing 35 general operatives, sought to apply agreed 2016 and 2018 pay increases to the bonus. The company said it had told the union in 2014 that future increases would apply only to basic pay. It argued that the existing scheme was no longer fit for purpose amid sustained losses and with the plant operating at 50% capacity. The Court accepted that the scheme needed revision, citing the company’s financial losses and concern for the Irish operation’s viability and employees’ future prospects. It recommended immediate discussions on a productivity-focused replacement scheme, which the company said could provide bonus earnings equal to or greater than those under the old scheme.