LCR22798

1. Cost Of Living Pay Claim

BACKGROUND:

2. This dispute could not be resolved at local level and was the subject of a number 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 16 June 2023 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 13 July 2023.



UNION’S ARGUMENTS:

The Union claims that there have been significant increases in turnover and profitability for employers in the years from 2015-2022.

The Union is seeking a 'cost of living' increase of 11% in addition to the increases previously agreed between the parties.

EMPLOYER'S ARGUMENTS:

The Employer has offered an increase of 3.5% in October 2023 and 1.9% in October 2024 and that discussions would commence on an increase in 2025.

The Employer maintains that their proposal is in line with average pay rises in the economy in general and the construction sector in particular, and along with an increase of 2.8% already applied on Jan 1 2023, would provide an increase of 8.2% over 2023 and 2024.

RECOMMENDATION:

The Court has given very careful consideration to the written and oral submissions of the parties.

The Court notes that a collective agreement is in place in the sector between the parties which is due to expire on 31^st December 2023.

Notwithstanding that agreement, the parties have engaged extensively in negotiations on the matter before the Court. Those negotiations, as has been the traditional practice in the sector for thirty years or more, involved the employers’ organisation, UNITE the Union and another Union also representing workers in the sector.

Those negotiations resulted in an offer from the employer body of an increase in pay in 2023 above that provided for by the existing pay agreement in that year, together with a further increase to take effect in 2024. That offer has been accepted in a secret ballot of the members of the other Trade Union involved in the negotiations. The offer has however been rejected by UNITE the Union without a ballot of its membership and referred to the Court in accordance with the procedures provided for in the parties’ agreements.

The offer by the employer body was for an increase in pay of 3.5% with effect from October 2023 and a further 1.9% in October 2024.

The Court has also noted that a Sectoral Employment Order has been given effect in the Construction Sector in 2023 which provides for an increase in pay of 1.9% on 18^th September 2023 and 3.5% on 5^th August 2024.

In all of the circumstances of this trade dispute the Court recommends that this trade dispute should be resolved by payment of increases in pay as follows:

• A further 3.5% above the previously agreed pay increase for 2023. This increase to have effect from 18^th September 2023

An increase in pay of 1.9% on 5^th August 2024.

And

• The parties to engage in further negotiations in 2024 with a view to completing a successor pay agreement providing for pay increases to have effect from the end of April 2025.

	Signed on behalf of the Labour Court
	Kevin Foley
DC	______________________
1 August 2023	Chairman