Staff at the C&C subsidiary Tayto crisps have today rejected a redundancy package from the management because they felt it was a "yellow pack" offer.
In June C&C announced its intention to shed close to 100 jobs at the Tayto plant in Coolock, Dublin, and contract out the manufacture of its crisps products to Largo Foods, which produces competing brands such as Perri and Hunky Dory.
The regional secretary of the Technical Engineering and Electrical Union (TEEU), Mr Arthur Hall, said he understood the rejection, although the group of unions at Tayto had recommended acceptance on the basis the company would not improve on its offer.
"Our members feel the redundancy package was a 'yellow pack' offer and it is notably worse than most redundancy deals in the food, drinks and tobacco sector."
Speaking today after workers at the Tayto plant voted by a 60 per cent majority to reject the offer, he said the result was unsurprising.
"Although Tayto is 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," he said.
The company had offered six-and-a-half-weeks redundancy for each year of service. The union said although the offer was "superficially attractive" it included statutory redundancy entitlements of two weeks and had been capped at €125,000.
Management said the deal had been rejected by staff by 45 to 32 votes and, in line with normal procedures, the matter had been jointly referred to the Labour Court for investigation
"As the case is still 'in procedure' the company will not be making any further statement on the matter," a company statement said.