Official strike action was under way at a Smurfit Kappa plant in Cork city yesterday as 130 employees engaged in the first of three work stoppage days planned for the coming weeks.
Workers plan to hold one-day strikes over the next two weeks and have also imposed a ban on overtime. Pickets were placed at the plant because of a row over sick pay.
Despite local negotiations and an earlier Labour Court hearing, Siptu and the company have failed to reach agreement.
Employees claim that if they become sick they will receive a payment of just €127 a week, half of which they insist they have contributed themselves. They are demanding the setting up of a non-contributory sick pay scheme.
Local Siptu branch union representative Bill Mulcahy said workers had no alternative but to take strike action.
"This would be a last-ditch attempt by the workers to try to achieve a proper sick-day scheme in what is a multi-million dollar company. We don't look for strikes to happen - they happen because there is no other alternative for the workers. This a totally officially dispute with the full backing of the union."
Siptu says the company could easily introduce a more generous sick-pay scheme, given the fact that Smurfit had a turnover of more than €7 billion last year. The Cork plant alone had a turnover of €30 million.
Meanwhile, Smurfit Kappa said it was disappointed that workers had engaged in industrial action at its Cork plant. The company said the union rejected recommendations from the Labour Court on improvements, including a doubling of contributions and benefits.
Smurfit Kappa says it was and is still willing to abide by the Labour Court's recommendations on the scheme. A spokesman said following Siptu's rejection of the recommendations, the Labour Relations Advisory Service appointed a mediator to resolve this matter.
"Unfortunately, Siptu did not engage meaningfully in the mediation and, as a result, it was not successful. The company will remain open during any other strike days planned, and it does not anticipate any service interruptions to our customers."
