Cargotec workers in Dundalk take one day strike action

Over 200 Unite members at the Cargotec (formerly Moffett Engineering) facility in Dundalk are taking strike action today in a dispute surrounding what the union has termed a "bogus TUPE" process. 

A ballot of Unite members last month returned an overwhelming 93 per cent vote in favour of industrial action, and a further day of strike action is scheduled for 16th March if the dispute is not resolved in the meantime.

The Union claim that Cargotec has refused to engage meaningfully at the Workplace Relations Commission and Labour Court regarding their proposal to transfer workers under what Unite has dubbed a "bogus TUPE" which workers say could leave their established jobs, pay and conditions vulnerable to attack in the future.

Speaking ahead of the action, Unite general secretary Sharon Graham said:

“Last year Cargotec’s global workforce generated over €4 billion in revenue for the company. And the thanks they get from the employer is a ‘bogus TUPE’ transfer to another Cargotec subsidiary which is likely to result in the undermining of the terms and conditions of these workers. 

“And worse, this entire process is being railroaded by the company who are refusing to engage meaningfully in the established state industrial relations mechanisms for union-employer negotiations. Cargotec should be in no doubt Unite will back our members all the way in their defence of decent jobs in Dundalk.”

Regional Officer Brian Hewitt added:

“The overwhelming 93 per cent vote for industrial action should leave Cargotec in no doubt that Unite members will do whatever it takes to defend the terms and conditions of everyone working in the Dundalk facility.  

“A further day of strike action is scheduled for 16 March. Resolution of this dispute is in the company’s hands:  they need to make use of Ireland’s industrial relations mechanisms and engage meaningfully and collectively with Unite to allay our members' concerns and put an end to this dispute,” Mr Hewitt concluded.

In a statement released to the Democrat, Cargotec defended their actions and expressed disappointment over the strike, saying:

"Cargotec is deeply disappointed that Unite officials are going ahead with strike action today March 10th and have planned a further strike on March 16th next.

"These planned actions are groundless and despite direct consultation with Unite, it appears that the union is unwilling to change their position on demanding the reversal of the transfer, despite the fact that Cargotec has proven that the TUPE transfer of employment of 40 employees from Cargotec to FSP For Surface Protection is legal and proceeded in full in accordance with employment law.

"The legality of the TUPE transfer was also established in emergency WRC talks in December 2022.

"It is perplexing that this action is going ahead for no valid reason; it only serves to jeopardise the Company’s ambitious investment plans to create a new state of the art factory in Dundalk in the near future.  

The statement continued:

"As per TUPE Regulations, employees’ terms and conditions, including pay, are fully protected. The company, at all times, emphasized the fact that there is no risk to job security or to a change in employees’ pay and conditions under the TUPE process and the 40 team members who work in the specialist surface protection area successfully transferred across to FSP on January 1st, 2023. 

"Cargotec commenced extensive consultation with staff impacted by the transfer of employment from Cargotec to For Surface Protection (FSP) on 7th November 2022 and over a further 5 consultation meetings with staff, Unite attended just 2 of those meetings.   The purpose of these meetings was to clarify any details or concerns with the process at the time, however Unite chose not to fully engage until after the consultations ended.

"Cargotec detailed to Unite representatives that this decision was part of Cargotec’s and Hiab’s long-term strategy to invest in its core business which is the design and assembly of load-handling equipment. To this end, all of its Product Supply Centres in various other markets have entered into, or will enter into, a strategic partnership with FSP who will invest in their core business to continue to provide best in class surface protection solutions. 

"Cargotec management and staff have had a strong, open positive working relationship over many decades.  Cargotec is at an advanced stage in identifying a site for our state-of-the art facility in Dundalk, representing a €30m investment. Separately, FSP is committed to investing €8-10m in a new co-located Fabrication and Paint Plant in Dundalk. All positive news for the future of both companies,  our staff and the local economy.  However, these plans have now been put on hold due to the ongoing uncertainty as the investment is dependent on the shared partnership between the two companies.  

"The Cargotec management’s door continues to remain open for further discussions with Unite and management are discussing the matter extensively with employees."