FTA KEEPS NORTHERN IRELAND'S LOGISTICS BUSINESSES FRONT OF MIND FOR GOVERNMENT F


TA, the only business organisation representing the logistics sector, has


outlined the importance of the industry at an exclusive meeting with Secretary of State for Northern Ireland, Julian Smith, at Stormont, 30th July. With over 13,500 vehicles crossing the border every day, Seamus Leheny, FTA’s policy manager for Northern Ireland, stressed the need for clarity over how goods and services will be moved after the UK’s departure from the EU to Smith, and whether permits will be required. “Northern Ireland’s economy is dependent on


a seamless supply chain,” says Leheny, “and has many complex and interdependent relationships with businesses on both sides of the border. Today’s meeting provided a great opportunity to outline the intricacies of the system to the Secretary of State, and highlight


those areas which still cause concern for logistics businesses. “70 per cent of freight crossing the Northern


Ireland border is classed as intermediate – ingredients, components and the like. As such it may require additional journeys in order to render finished products for sale, and it is vital that, at this late stage in the Brexit process, logistics businesses are provided with answers on how these vehicle movements are to be organised, the duties payable and collection methods to be used. Smith listened closely to the concerns of industry, and has promised to provide the answers industry needs in a timely fashion. “A No Deal Brexit would pose problems for


our sector, as well as for others involved in today’s meeting, and we were all encouraged by Smith’s willingness to engage with and understand our concerns. It is critical to the


future success of Northern Ireland’s supply chain that FTA is involved in meetings like this, and we will be maintaining our dialogue with Smith and his team to ensure that the country’s logistics industry is protected as far as possible as the UK leaves the EU.” Efficient logistics is vital to keep Britain


trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods. With Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. A champion and challenger, FTA speaks to Government with one voice on behalf of the whole sector, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers.


AXFLOW ACQUIRES IRISH PUMPS & VALVES LIMITED A


xFlow Ireland has announced its acquisition of Irish Pumps


W


elcome to the August issue of Irish


Manufacturing. The observational ones amongst us may have noticed, we’re increasing from six issues a year to ten! We’re growing, just like Irish manufacturing is growing. Please get in touch with myself or Charley to see our new features list.


Rachel Tucker - Editor


& Valves Limited, a major supplier of valves, actuators, pumps and ancillary equipment to the wastewater, power generation and process industries. AxFlow Ireland has a long and


well-established presence in these industries through its pump distribution and service facilities, and by adding valves to its portfolio it will be able to offer pump and valve packages for large scale projects. Announcing the acquisition,


AxFlow Group CEO Ole Weiner says: “This acquisition will enable AxFlow Ireland to enter the valve market in the wastewater sector and thereby capitalise on Irish Pumps & Valves


strong position. The strategy of adding valves to our product portfolio has already realised benefits in the food sector with the introduction of SPX products. This is a big opportunity for us to grow valve sales in sectors which AxFlow Ireland has never explored. We have a good spread across all markets with our pumps so adding valves to our offering is obvious next step in growth.” The move has been welcomed by


Helen Murray, owner of Irish Pumps & Valves. “There are considerable synergies between both companies and together we can expand into industry sectors where previously we were under represented,” says Helen Murray. It’s a view that is also


supported by Stuart Flood, managing director of AxFlow Ireland. “Irish Pumps & Valves is an


established business in the Irish market,” comments Stuart Flood. “They are strong in the water and wastewater, which complements AxFlow’s sales of PD pumps in this sector. This acquisition will enable us to offer pumps and valves in one package, giving us a significant competitive advantage, making us truly a One Stop Shop.” He continues: “Irish Pumps & Valves has a good geographical location outside Dublin, so this will provide AxFlow with the opportunity to grow another service facility for its pumps business, as well as developing service and testing for valves.”


A


MANUFACTURERS URGED TO TAKE ACTION TO AVOID LARGE CLAIMS However, a recent decision in the NI Court of


recent ruling in the Northern Ireland Courts could have a significant impact on


UK manufacturing businesses that still aren't including overtime payments, allowances or some commission payments in holiday pay. The latest development on the issue of how


holiday pay should be calculated is expected to have a big impact on manufacturers due the high levels of overtime paid to staff working in the sector. The issue of whether businesses are


underpaying workers for their holiday was sparked by a series of high profile rulings which stated that employers should pay staff non- guaranteed and voluntary overtime, some allowances and performance related commission payments when calculating holiday pay. This led to fears amongst many businesses


that this would lead to huge backdated claims from employees who had been underpaid for years. A controversial ruling in 2014 by the Employment Appeals Tribunal in the case involving infrastructure and maintenance company, Bear Scotland Limited, allowed many organisations to use technical arguments to successfully limit their liability in this area.


Appeal in Chief Constable of the Police Service of NI and others v Agnew has overruled those technical arguments and made it much more likely that UK courts will - at some point in the near future - follow suit. The case in Ireland was brought on behalf of


3,380 police officers and 264 civilian employees who had only received basic pay during their holidays. At the time the claims were issued (2015/16) the underpayments were estimated to amount to around £30 million. The Police argued they were entitled to apply


the EAT's reasoning in Bear Scotland and exclude those payments it could lawfully make at basic pay. Applying this method resulted in underpayments of around £300,000. The issue eventually wound up before the NI


Court of Appeal which made some very important findings which included that the EAT's analysis in Bear Scotland was incorrect and had resulted in 'arbitrary and unfair' results. As a result, the workers in this case can


recover underpayments going back to the start of their employment (or 1998 if earlier). It's been estimated that their claims are now


/ IRISHMANUFACTURING


valued at £40 million. Glenn Hayes, an employment partner at Irwin


Mitchell and specialist in the manufacturing sector, said: “Decisions in Northern Ireland are not binding in England & Wales, but we expect this decision to be persuasive and to affect the outcome of future cases in England, Wales and Scotland. “We also believe that The Deduction from


Wages (Limitation) Regulations 2014 which the government introduced to limit how far back individuals can bring unlawful deduction claims to two years in England, Wales and Scotland may also be challenged as being unlawful. The argument is that these Regulations breach the EU principles of equivalence and effectiveness and if they fall, the avalanche of claims that many speculated about five years ago may become a reality. “To avoid this, employers must make sure


that staff receive normal pay when they go on holiday, for at least 20 days of their leave. Claims still have to be brought within three months from the date of the last underpayment, therefore the sooner organisations pay the right amount, the better.” www.irwinmitchell.com


IRISH MANUFACTURING | AUGUST 2019 5


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