LCR22451

1. Pay Claim

BACKGROUND:

2. This dispute could not be resolved at local level and was the subject of Conciliation Conferences under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 5 May 2021 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place in a virtual setting on 6 August 2021.

UNION’S ARGUMENTS:

3. 1. The Union proposed another three year pay agreement of 12%, with an increase of 4% in each of those years. Following conciliation, the Union propose a reduced percentage, 3%, 3% plus a Christmas voucher of €500.

2. The Union states the Employer's operating profit in 2020 is in no small part due to the commitment and the flexibilities agreed during the challenging year.


EMPLOYER'S ARGUMENTS:

4. 1. The Employer states the Union pay claim is unwarranted and there should be no pay increase for 2020 or 2021. Despite a pay freeze, increments have been paid in 2020 an will continue to pay increments in 2021.

2. The Employer states volumes, revenue and profits have dropped in 2020 compared to 2019 and the outlook for 2021 is uncertain. Also, due to an unprecedented investment programme required the Employer, a pay increase would not be possible from the Employer's perspective.

RECOMMENDATION :

This dispute relates to a pay claim by SIPTU on behalf of its members. They are seeking an increase of 5% for 2020, 2021 and 2022. The last pay agreement the parties had expired on 31^st December 2019.

It is the Union’s submission that negotiations on a new pay deal commenced early 2020 but had to be put on hold with the onset of Covid. Further engagement took place early 2021 but no agreement could be reached. It is the Union’s submission that Worker’s demonstrated unprecedented flexibility during the pandemic and the Company benefited from this flexibility.

The Union are prepared to consider a two -year deal as put forward by the Employer but are not prepared to consider a pay freeze for 2020. The Union in the course of conciliation amended their claim to a claim for 2.75% for 2020 and 2.75% for 2021 with a €500 voucher to be paid before Christmas 2021.

It is the Employer’s submission that there are a number of factors affecting their Revenue streams including competition, loss of cruise business, drop in cargo volumes which are not expected to recover for at least two more years. The Employer also has to invest in a number of capital projects all of which impact its financial position. The Employer in the course of conciliation had put forward what it believed to be a reasonable offer of 2.25% for 2020 and 2.75% for 2021 but this had been turned down by the Union.

The Court having considered the written submissions of the parties and the oral submissions on the day of the hearing recommends a pay increase for 2020 commencing from the expiry of the last pay agreement of 2.5%. For 2021 the Court is recommending a pay increase of 2.75% and a voucher to the value of €300 to be paid prior to Christmas 2021.

The Court so Recommends.

	Signed on behalf of the Labour Court
	Louise O'Donnell
TH	______________________
25 August 2021	Deputy Chairman