LCR23307

PARTIES:

DIVISION:

SUBJECT:

Referral under Section 26(1) of the Industrial Relations Act, 1990.

BACKGROUND:

This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 2 April 2026 in accordance with Section 26(1) of the Industrial Relations Act, 1990.

A Labour Court hearing took place on 30 June 2026.

RECOMMENDATION:

The matter before the Court is a joint referral from the parties in a dispute about pay.

The parties have failed to find agreement on pay increases to apply following the expiry of a pay agreement on 31 December 2025.

Union Arguments:

The Group of Unions seek pay increases of 5% for 2026 and 5% for 2027.  The claim is grounded in the need to address the negative impact of the current pay model/matrix, ICTU guidance and the need to protect members living standards. As a result of tweaks and changes to the pay model and matrix over time, it is increasingly difficulty to draw meaningful comparisons with other semi-state organisations. The claim is fair and reasonable having regard to the strong financial position of the company, pay settlements across the semi-state sector, broader national pay trends and the ongoing cost-of-living pressures facing workers. 

Company Arguments:

The company proposes pay increases of 3% for 2026 and 2% for 2027, with the option to revisit year 2 if CPI climbs significantly. Past pay progression compares favourable against CPI and the average salary is ahead of semi-state comparators. With global economic uncertainty and a nationwide energy affordability issue, it is incumbent on the company to manage costs prudently. Roughly one quarter of end-users gas bill is directly attributable to the company’s costs and currently 26% of customers are in arrears on their gas bills. Given continued uncertainty and volatility in the energy market, any pay increases must balance internal considerations with the macro external environment.

Recommendation:

The company operates a market based, performance related reward structure which was introduced in 2013 by way of a collective agreement between the parties. Under the pay matrix, pay increases depend on performance and position within salary bands. While that model has been the subject of engagement and review over time, the parties confirmed that the operation of the pay matrix was not before the Court and that the only matter for consideration by the Court is the dispute relating to the pay claim. The stated preference of the parties was for the Court to make a recommendation on a three year pay deal to apply with effect from 1 January 2026.

The parties have provided comprehensive written and oral submissions to the Court, which the Court has carefully considered. Having regard to the submissions made and taking account all of the circumstance of this case, the Court makes the following recommendation.

Pay increase

The Court recommends that the parties conclude a three year pay deal with increases to apply through the current pay model pay matrix as follows:

• Year 1 - 3 % effective from 1 January 2026
• Year 2 - 3 % effective from 1 January 2027
• Year 3   3% effective from 1 January 2028

Once-off Voucher

A once off voucher payment consistent with Revenue rules in the amount of €300 to apply in 2026.

The Court so recommends.

	Signed on behalf of the Labour Court
	Katie Connolly
TH	______________________
04/09/2026	Deputy Chairman

NOTE

Enquiries concerning this Recommendation should be in writing and addressed to Ms Therese Hickey, Court Secretary.