LCR22422

FULL RECOMMENDATION

SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990

PARTIES :

BURNSIDE HYDRACYL (BALLYMOON) LTD
(REPRESENTED BY STRATIS CONSULTING)

- AND -

170 WORKERS
(REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION)

DIVISION :

SUBJECT:

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 6 April 2021 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place in a virtual setting on 4 June 2021.

UNION’S ARGUMENTS:

3. 1. The Union are seeking a 10% pay increase over 3 years, with effect from 18^th November 2019.

2. Union members are continually working overtime, and the Employer have hired new staff

3. The Union state the Employer took a loan from Enterprise Ireland for capital expenditure, but this should not preclude the Employer from investing in wage agreements, and that there is scope to apply wage increases based on turnover targets and cash staying steady.

4. The Union state the Employer purport to have a good working relationship with Union members however the Union state that this has not been evidenced at any meetings or negotiations

EMPLOYER'S ARGUMENTS:

4. 1. The Employer have awarded pay increases to the value of 13.5% over 6 years, expiring in December 2019 and during 2020 all bonuses were paid amounting to €800 net per employee.

2. The Employer received TWSS/EWSS during the COVID-19 pandemic in 2020, which allowed them to maintain their staffing level of 180 workers and made provision in their accounts of approx. €200000 to pay the personal tax liability for each employee arising from this period.

3. The Employer shared confidential information with the SIPTU accountant which demonstrated the financial position of the company. A pathway for a pay increase in 2022 was included in the shared documents.

4. The Employer will be in a position to engage with Unions on pay in the latter part of 2021, and any arising pay increase would be effective from 1^st December 2021.

RECOMMENDATION :

Background to the Dispute

The within dispute relates to a pay claim for 10% over three years retrospective to the conclusion of the most recent pay agreement between SIPTU and Burnside Hydracyl (Ballymoon) Limited (‘the Company’), on 18 November 2019, in respect of c. 170 general operatives.

The Union submits that notwithstanding the challenges of Brexit and the Covid-19 pandemic, the Company has remained extremely busy and all staff are working on a full-time basis. It further submits that the quantum of the claim, over a three-year period, is justified having regard to pay increases achieved in similar manufacturing businesses.

The Company submits that it has experienced very challenging trading conditions since the outbreak of the Covid-19 pandemic but has nevertheless continued to manufacture product and employ staff throughout that period albeit with the assistance of the TWWS and EWSS schemes up until December 2020. It further submits that employees received their annual bonus during 2020 and that it has made provision in its accounts to discharge the personal income tax liability of all workers arising from the TWWS and EWSS schemes. Labour costs, it submits, are currently at an unsustainable level vis-�-vis turnover and the introduction of measures to improve efficiency and productivity is imperative if the business is to be sustainable into the future. Levels of sales also dropped in the period from March 2020. The Company’s representative told the Court that the financial position shared with the Union’s nominated accountant demonstrated clearly the financial challenges it faces and the Union did not seek to challenge the validity of that information. In the light of the foregoing, the Company is seeking a pay freeze until a further review of its financial and trading positions is undertaken in the latter part of 2021.

Recommendation

The Court recommends a pay increase of 2.5% be conceded with effect from 1 June 2021.

The Court also recommends that the Union and the Company proactively engage, in early course, in relation to the introduction of measures to improve productivity and efficiency.

The Court so recommends.

NOTE

Enquiries concerning this Recommendation should be addressed to Elaine McNeela, Court Secretary.