LCR22401

1. Pay Claim subsequent to the expiry of a collective wage agreement

BACKGROUND:

2. UNION’S ARGUMENTS:

3. 1. The Union is seeking a 3% per year for three years commencing on 1^st January 2020.

2. The Union rejected the Company proposal of a €500 voucher for 2020 and a pay review in 2021.


EMPLOYER'S ARGUMENTS:

4. 1. The Employer stated that they were looking at a pay increase of 4.5% in February 2020 for the three years 2020-2022, but had to implement a pay freeze a result of the pandemic.

2. The Employer indicated that they are now in a position to negotiate in relation to 2021 and 2022.

RECOMMENDATION :

The issue in dispute between the parties arises from the expiry of the collective wage agreement on the 31^st Of December 2019 and negotiations about a successor agreement.

Union position

The Union met with the Company in November 2019 and informed them they were looking for 3% per year for three years commencing on 1^st January 2020. The parties had two further meetings at local level then the issue was referred to the WRC. Due to the Pandemic the next engagement was not until 2^nd September 2020 which was a local meeting with the Employer.

At that meeting the Employer stated that there would be no increase for 2020. The parties attended conciliation under the auspices of the WRC in October 2020 the Company put a proposal of paying a €500 voucher for 2020 and a commitment to review pay in 2021. This was not acceptable to the Workers.

Employer’s position

The Employer in February 2020 were looking at a pay increase of 4.5% for the three years 2020-2022. However, the Union were seeking 9% for the same period. While local discussions took place, no agreement was reached. With the onset of Covid, the company had to introduce a strategy to keep essential services running and reduce their cost base. One of the elements of that strategy was a pay freeze for 2020.

Despite a company-wide pay freeze the Employer managed to obtain approval to offer a €500 voucher to the workers in Wexford. Wexford was the only part of the company where this offer was made. It is the Employer’s submission that things have moved on somewhat since they were in conciliation and that they are now in a position to engage in respect of 2021 and 2022 and that the voucher for 2020 is still in the mix.

Discussion

The Court engaged with the parties around the value of the voucher in real terms noting that the pay freeze for 2020 appeared to be Company wide and arising from the Pandemic. The Court also noted the Employers position that they are now in a position to engage in respect of 2021 and 2022.

The Court recommends that the parties return to local talks with a view to reaching agreement that covers the period 2020 to 2022, recognising the difficulties that pertained in 2020.

The Court so recommends.

	Signed on behalf of the Labour Court
	Louise O'Donnell
DC	______________________
27 April 2021	Deputy Chairman