Dublin Tayto workers reject 'yellow pack' severance offer

Workers at the Tayto crisps plant in Dublin have voted to reject a redundancy offer.

Food and drinks group C&C, which owns Tayto, announced in June that it was to close its manufacturing plant in Coolock with the loss of nearly 100 jobs. The company is to contract out production to Largo Foods, which produces competing brands such as Perri and Hunky Dory.

The regional secretary of the Technical Engineering and Electrical Union (TEEU) Arthur Hall said last night that while the group of unions at the plant had recommended acceptance of the redundancy deal - on the basis that it was the most the company would offer - he could understand the members' decision to reject it.

The issue will now go to the Labour Court. "Our members feel the redundancy package was a 'yellow pack' offer, and it is notably worse than most redundancy deals in the food, drink and tobacco sector," he said.

Mr Hall added that while the offer of six-and-half weeks' redundancy for each year of service was " superficially attractive", it included statutory redundancy entitlements of two weeks and had been capped at €125,000.

"This means that some long-service employees will be receiving between a third and a half of the topline rate.

"We understand that the cap on payments has been imposed by senior group management."

Mr Hall said that while Tayto was a profitable operation "it obviously suits C&C to close the Coolock plant and sell the site rather than maintain 90 good quality and secure jobs".

In a statement last night Tayto confirmed that "a comprehensive severance deal" which had been recommended by the unions had been rejected by staff in a ballot by 45 votes to 32.

"In line with normal procedures the matter has been jointly referred to the Labour Court for investigation," the Tayto statement added.