Labour Court recommends 16.25% pay hike for Danone staff

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Irish Times, click this post to read the original article.

The Labour Court has recommended a 16.25 per cent pay increase for 143 workers at Danone’s Macroom plant in Co Cork.

The recommendation came after SIPTU told the court Danone Nutricia “is in a healthy position financially and operationally at the Macroom site”.

Labour Court deputy chairwoman at the Labour Court, Katie Connolly recommended a 5 per cent increase be backdated to January 1st 2024, a further 4 per cent backdated to January 1st 2025 and a further 3.75 per cent increase to come into force from January 1st of this year.

Connolly has recommended that the final 3.5 per cent of the pay increase come into effect from January 1st of 2027.

The plant at Macroom is operating on a 24/7 basis where infant formula base powder is produced.

The infant formula is supplied to other supply points across the Danone network in Ireland, across Europe and further afield to China, Indonesia, Brazil and at Argentina for local markets as well as export.

Two of Danone’s best-known brands, Cow & Gate and Aptamil are produced at Macroom.

The company has a total of 236 employees on site at Macroom where it has recognition agreements with SIPTU and the Connect union.

The Labour Court recommendation falls just short of the SIPTU pay claim of 16.5 per cent increase over four years.

In its argument before the Labour Court, SIPTU said its claim “is both reasonable and affordable”.

On the profitability of the company, SIPTU said the accounts of the business filed in Ireland are consolidated with the accounts of the parent company and indicate a profit of €2.1 billion in 2024 worldwide – the highest in the last five years.

SIPTU pointed out that the profitability and operational strength of the Macroom site is ultimately delivered by the workers.

The union said the cost of living “has increased significantly in recent years and continues to erode family finances”.

SIPTU said its claim, while above the average achieved in other employments, “is justified given the performance of the company. The company is a market leader and must remain so in terms of pay”.

In response Danone pointed out that it pays excellent pay and conditions which are reflected in the low staff turnover rates of 4 per cent annum in grades represented by SIPTU.

Danone stated that while it is profitable, over the last ten years labour costs have increased significantly on site.