LCR22659

1. Pay Claim

BACKGROUND:

2. 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 18 July 2022 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 13 October 2022.



UNION’S ARGUMENTS:

3. 1. The Union claim that the hourly rate of pay of its members is below the hourly rate of pay to comparators in the local area.

2. The pay claim of 21% over a three-year period reflects the aspiration of its members to bring the hourly rate of pay in line with these comparators


EMPLOYER'S ARGUMENTS:

4. 1. The Employer, submits that it secured a three-year maintenance service contract in May 2019 and is in the process of tendering for a further contract

2. The Union has diverted considerably from the original claim.



RECOMMENDATION :

The employer provides a contracted maintenance service to another company. Connect, on behalf of its members, is seeking a pay deal of 21% over 3 years effective from 1 May 2022.

Connect contends that the hourly rate of pay of its members is well below the hourly rate paid to comparators in the local area and is just above the hourly rate for apprentices in the industry. The pay claim of 21% over a three-year period reflects the aspiration of its members to bring the hourly rate of pay in line with these comparators. During the course of negotiations it has moved significantly from its original claim and is now seeking an award of 14% over a three-year period. It requests that the Court take account of current inflationary pressures in making its recommendation.

Peninsula, on behalf of the employer, submits that it secured a three-year maintenance service contract in May 2019 and is in the process of tendering for a further contract. At conciliation it offered a 10% pay deal for 3 years, broken down as follows:

• 2022 – 5%
  2023 – 2.5%
  2024 – 2.5%

The Employer submits that the comparators cited by the union are not valid comparators as they are larger employers that operate in different sectors. Furthermore, the Company is not in a position to pay an increase of 14% over a three-year period, which would reduce its competitiveness and the likelihood of securing another contract.

The Court has given careful consideration to the oral and written submissions made by the parties. Both parties confirmed to the Court that they are seeking that Court recommend pay increase to apply over a 36-month period, effective from 1 May 2022.

Having regard to all of the circumstances, the Court recommends the following pay increases:

• 1 May 2022 – 5%
  1 May 2023 – 3%
  1 May 2024 – 2.5%

	Signed on behalf of the Labour Court
	Katie Connolly
CO'R	______________________
24 October 2022	Deputy Chairman