Labour Court recommends 8% pay rise for 205 Pinewood Healthcare workers
Cummins Increase A 6% Workers Pay Pinewood Proposed The Siptu Paddy 205 For Sought Pay While Healthcare 10% A Of Picture: Had Increase
Pharma firm Pinewood Healthcare has successfully refinanced its debt but is in an extremely sensitive and precarious situation in relation to its finances.
That is according to a submission made on behalf of the Clonmel-based pharma company to the Labour Court as to why the court should not accede to demands by Siptu for a 10% pay increase for 205 operatives.
In its submission to the court, Pinewood Healthcare also stated that in the period April to September this year production fell by 8% primarily due to production failure on manufactured batches.
The company — represented by Ibec — at the Labour Court stated that “as a result, customers are being lost to competitors”.
The most recent accounts for Pinewood Laboratories Ltd show that the company recorded pre-tax profits of €2.53m as revenues increased by €7.07m or 12% to €65.65m in the 12 months to the end of March 2024.
In its own submission, Siptu stated that the company is in good financial order and can afford the pay increases.
The union said its members want certainty of pay and not to be gambling on key performance indicators (KPIs) that they would have no control over.
Siptu stated that workers and management have always had a good working relationship and despite the lack of meaningful engagement on this current pay dispute the members would wish for this good relationship to continue into the future.
Siptu was seeking a 10% pay increase over two years and in its recommendation, the Labour Court has recommended an 8% pay increase with 4% from April 1 2023, and 4% from April 1 2024.
Labour Court deputy chairwoman Louise O’Donnell said that in response to the Siptu 10% pay claim, Pinewood Healthcare proposed a pay increase of 6% over the same period of time.
Ms O’Donnell said that the employer subsequently put forward an amended proposal of a pay increase of 7% — 3% on April 1 2023; 1% on April 1 2024; and 3% on April 1 2025.
Ms O’Donnell said that an additional 2% — subject to two KPIs being achieved — would be paid in April 2025 and backdated to January 1 2024.
Ms O’Donnell said that this proposal was rejected by the Union as KPIs had never been discussed.
She said that Siptu contends that there is already an existing productivity bonus on site with applicable variable KPIs and the bonus had never been maximised or achieved by its members.
Siptu also pointed out that, having reviewed the company accounts, turnover and sales have increased and that should be reflected in the pay increases for the workers.