LCR22628

1. Method Of Payment

BACKGROUND:

2. The matter could not be resolved at local level and was the subject of a WRC conciliation. After failing to meet agreement at the WRC the matter was referred to the Labour under S26(1) of the Industrial Relations Act 1969.


UNION'S ARGUMENTS:
• The Employer introduced a permanent change without consultation to a pre-existing agreement that the Workers concerned would be paid in cash.
• If the change is to continue on a permanent basis the employees should be adequately compensated to reflect this change.


COMPANY'S ARGUMENTS:
• The pre-existing agreement is 29 years old and is therefore outdated.
• The change to non-cash payments was required by the Covid-19 Pandemic.

A Labour Court hearing took place on Friday 8 July 2022. The following is the Recommendation of the Court:

RECOMMENDATION :

The Court notes with concern that the Employer sought to introduce unilaterally a permanent change to an agreement between the parties, albeit one that was forced on them temporarily in the circumstances of the lockdown. Notwithstanding the fact that the agreement is 29 years’ old, the Court expects that a party who wishes to change any agreement that they entered into freely, would seek to do so in dialogue with the other party. To that extent, the Court appreciates the Union position.

However, the Court cannot ignore the fact that there have been significant changes in the world since that agreement was made, such that it would expose the Court to understandable ridicule if it was to insist that the Employer must continue to pay the Workers concerned in cash.

The Court notes that both parties suggest that a potential solution lies in the payment of money to the Workers concerned in return for agreement to change but that there is a vast gulf between them as to what constitutes a reasonable amount. In this regard, the Court is struck by the understandable concern on the part of the Employer that any significant payment could give rise to follow-on claims.

The Court notes that the Workers concerned are distinguished from their fellow workers in the employment in that their Employer is seeking to impose something on them to which they are opposed and, more particularly, that their position is protected to date by the 1993 agreement between the parties. Therefore, the Court is satisfied that some payment to this group of Workers can be confined to them without giving rise to the potential for follow-on claims. On the other hand, it would be unfair on the other workers in the employment if that amount was too significant a sum.

Both parties expressed concerns to the Court about the use of cheque payments, a practice which is, itself, increasingly disappearing in the workplace in favour of inter-bank credit transfer.

Accordingly, the Court recommends that a ‘once-off’ gesture payment of €400 be paid by the Employer to each of the 5 Workers concerned in return for their agreement to move to a system of wage payment by inter-bank credit transfer.

	Signed on behalf of the Labour Court
	Tom Geraghty
SL	______________________
15 July 2022	Deputy Chairman