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LCR22284

FULL RECOMMENDATION

CD/20/214
CCc-165027-20
RECOMMENDATION NO. LCR22284

SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990


PARTIES :
BANAGHER PRECAST CONCRETE

- AND -

120 GENERAL OPERATIVES
(REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION)


DIVISION :

Chairman: Mr Haugh
Employer Member: Mr Marie
Worker Member: Mr Bell

SUBJECT:

1. This dispute concerns a pay claim.

BACKGROUND:

2. Following the expiration of a two-year pay deal, the parties engaged in discussions in late 2019 for a new agreement.

  • The Union has proposed a range of pay rate improvements for the different craft grades and overtime to be paid at a premium of time + one half after 39 hours.

The Employer has proposed pay levels at current rates for year 1 followed by 2% increase in year 2 and a further pay increase of 2% in year 3 and overtime would be paid to all employees when their length of service exceeds 24 months after 43.00 hours at a premium of 1.33 effective from the 1 July 2020.
  • 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 the 24 July 2020 in accordance with Section 26(1) of the Industrial Relations Act, 1990.

A Labour Court hearing took place on the 17 September 2020.



UNION’S ARGUMENTS:


3. 1. The union contends that the current pay system is poorly structured as there are eight different general operative rates covering Craft and Supervisors all with no movement through the rates.

2. The Union is seeking application of the standard overtime premium payments of time + half which will apply after 39 hours; on Saturday the first 4 hours to be time +half and double-time thereafter and double-time on all hours on Sunday.

3. Talks on a follow-on agreement to commence in September 2022 with an application date of the first weeks pay-roll in January 2023.


EMPLOYER'S ARGUMENTS:


4. 1. Brexit is a very serious concern for the Company and is likely to have a significant impact on the business in particular their ability to compete in the UK marketplace.

2. The impact on the business of Covid?19 to date has been very negative. Most of the industry was shut down for a period of 7 weeks and the start?up has been very gradual.

3. Given that the Company’s pay rates are similar to others within the industry and generally higher than those of our UK counterparts, any significant additional cost to the business, which is highly labour intensive, having 30% of its costs associated accordingly, would have a devastating impact on competitiveness.





RECOMMENDATION :

Background to the Dispute

The Court received very comprehensive submissions from both Parties in which they each set out in some detail the course of their engagement regarding the within pay claim initiated by the Union in mid-2019.

There are several strands to the claim as presented by the Union to the Court. In summary, the Union is seeking the following:

(a) The introduction of a banded pay structure comprising four bands with defined criteria for progression through the bands;

  • (i) Band 1: The application of the living wage of €12.30 as the new General Operative initial rate of pay– to increase in line with future improvements to the living wage rate;

    (ii) Band 2: General Operative rate of €13.28;

    (iii) Band 3: General Operative rate of €14.28;

    (iv) Band 4: Supervisor and Certified Craft rate of €17.28.

(b) In return for agreement to a three-year pay deal, the Union is seeking the following annual increases to the above rates with negotiations regarding a subsequent agreement to commence in September 2022:
  • (i) 8 January 2021 – 3%

    (ii) 7 January 2022 – 3%

(c) Overtime Payments:
  • (i) Overtime at Tx1.5 to apply from the 39th hour;

    (ii) Saturdays – first four hours paid at Tx1.5 and double time to apply thereafter;

    (iii) Sundays – double time;

    (iv) Public holidays in line with the Organisation of Working Time Act 1997.

(d) Introduction of a 12-week per annum sick pay scheme

(e) Improvements to and a broadening out of the current Defined Contribution Pension Scheme.

The Company’s position as outlined to the Court is as follows:

Pay Rates:


  • • Current levels to be maintained for calendar year 2020;

    • 2% increase to be applied 1 January 2021;

    • 2% increase to be applied 1 January 2022.


Overtime:

Overtime to paid to employees with 24 months’ service at a rate to Tx1.3;

The Company proposes the following pathway in which a 39-hour week can be achieved:


  • • From 1 July 2020, overtime premium to be paid after 43 hours;

    • From 1 January 2021, overtime premium to be paid after 42 hours;

    • From 1 January 2022, overtime premium to be paid after 41 hours;

    • From 1 January 2023, overtime premium to be paid after 40 hours;

    • From 1 January 2024, overtime premium to be paid after 39 hours

Recommendation

The Court notes the very considerable differences in the Parties’ respective positions. The Court is in no doubt, having reflected carefully on the Parties’ written and verbal submissions, that the Company’s failure to share relevant financial information with the Union has contributed in no small part to the lack of progress to date in resolving this dispute.

In light of the foregoing, the Court recommends that the Parties engage in intense negotiations locally with a view to developing a shared and informed understanding of the Respondent’s financial and commercial situation. If necessary, the Parties may then avail themselves of the assistance of the Conciliation Service of the Workplace Relations Commission. The Court remains available to assist the Parties thereafter if agreement has not been reached at that point.

The Court so recommends.

Signed on behalf of the Labour Court
Alan Haugh
CR ______________________
2 November, 2020 Deputy Chairman


NOTE

Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.