LCR22655

1. Missed Increments

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 27 May 2022 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 27 September 2022.



UNION’S ARGUMENTS:

3. 1. Many union members have suffered ongoing and significant financial losses since increments were frozen

2. The Union have been treated differently to another group of workers in the same organisation who have had their increments restored.

EMPLOYER'S ARGUMENTS:

4. 1. The Employer claims they cannot pay the union's claim due to serious financial difficulties.

2. The Employer is a non-profit organisaton, and entirely dependent on the HSE for funding.



RECOMMENDATION :

The matter before the Court is a claim by the union for reinstatement of increments which have not been paid to its members since June 2018.

The Employer is a not-for-profit organisation and is totally dependent on the HSE for funding. It pleads inability to pay the union’s claim due to serious financial difficulties and submits that if it cannot meet its budgetary requirements, it will cease trading. Since 2008 the organisation has seen year on year budget reductions against the volume and expansion of the service provided. To date, the budget cuts have been absorbed through reformatting the infrastructure of service delivery. The Employer acknowledges that nursing staff benefited from the restoration of their increments. It submits that it is committed to the principle of pay parity and would restore increments to the workers in the within dispute if it was in a position to pay the claim. However, it cannot concede any cost-increasing pay adjustments, unless the HSE commits to further funding. It has sought funding from the HSE, but this has not been forthcoming.

SIPTU is in dispute with the Employer for non-payment of increments to its members since 2018. The Union acknowledges the financial difficulties facing the Employer, however, its submits that this does not detract from the fact that its members have suffered ongoing and significant financial losses since increments were frozen, particularly in comparison to colleagues who had already reached the maximum of the salary scale. Its members frustrations have been further exacerbated by the fact that they have been treated differently to another group of workers in the same organisation who have had their increments restored.

The Society is a not-for-profit section 39 organisation which receives all of its funding from the HSE. The Court is conscious of the considerable financial difficulties facing the employer, which does not have control over its level of funding and is not in a position to meet its obligations to staff. Nevertheless, the Court acknowledges the entitlement of the staff concerned to payment of increments and so recommends the restoration of pay increments to the workers concerned. The Court further recommends that the parties should jointly approach the HSE to secure the resources necessary to meet the cost of this Recommendation.

The Court so recommends.

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