Cork PepsiCo workers urged to accept 9% pay rise offer

A group of workers at the Irish arm of US soft drinks giant, Pepsico, are to get more fizz into their pay packets, despite company concerns over the impact of the Government’s planned sugar tax on earnings.

A group of workers at the Irish arm of US soft drinks giant, Pepsico, are to get more fizz into their pay packets, despite company concerns over the impact of the Government’s planned sugar tax on earnings.

This follows the Labour Court recommendation that SIPTU accept the 9% pay offer on the table from Pepsico Ireland for its general operatives at its Little Island plant in Cork. SIPTU was seeking a 5.5% increase, over 12 months, from last February. In response, Pepsico Ireland offered a 2.75% increase, over 12 months, and a 9% increase over three years. However, SIPTU’s negotiating committee felt that they could not consider this proposal, as they had received a strong mandate from the members at the plant to secure a 12-month agreement.

The matter was referred to the Labour Court, and Pepsico Ireland told the court that it had four agreements with peer groups in Little Island and Carrigaline. Pepsico said that the 9% offer remained on the table, despite the unpredictable effect of the planned sugar tax.

PepsiCo Ireland employs 500 people at three facilities in Cork.

The company set up in Cork in 1974, at Little Island, producing concentrate base for well-established brands, such as Pepsi, Diet Pepsi, and 7-Up.

In 2003, the company invested $100m in a second manufacturing facility, at a greenfield site in Carrigaline, while, in 2007, the Irish operation became the global headquarters for the PepsiCo Worldwide Concentrate business.

PepsiCo said it has never implemented a pay pause or pay cut, despite the economic downturn, and has displayed a most generous and proactive approach to employee relations in all its dealings.

In its recommendation, the Labour Court said that the three-year offer has already been accepted by the SIPTU members at PepsiCo’s Carrigaline and Food and Flavours plants, and has also been accepted by TEEU members in the Little Island plant.

The Labour Court also noted that the company indicated that the new sugar tax is likely to have an impact on its business. However, that impact is unknown.

Ireland’s much-hyped sugar tax — due to be introduced in April — is only expected to raise €40m per year for the exchequer.

It will apply to sugar-sweetened drinks that have a sugar content of 5g-8g per 100ml, at a rate of 20c per litre.

A second rate will apply for drinks with a sugar continet of 8g or above, at 30c per litre.

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