LCR22706

1. Pay Increase


BACKGROUND:

2. This dispute refers to a request from the Union for a pay increase for 102 workers employed by Rehab Enterprises Limited. This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 20 December 2019 in accordance with Section 26(1) of the Industrial Relations Act, 1990.

A Labour Court hearing took place on the 13 March 2020 and the 19 December 2022.


UNION’S ARGUMENTS:

3. 1. The Union argued that there has been no pay increase for these workers since 2009.

2. The Union pointed out that the rate of pay many of their members receive are subsidised by a minimum of €5.30 per hour through the Wage Subsidy Scheme.

3. The Union stated that newly created managerial roles have been advertised and filled in recent times with significant salaries attached to them.

EMPLOYER'S ARGUMENTS:

4. 1. The Employer stated they cannot consider any mechanism which may increase cost.

2. The Employer stated that there is no mechanism for annual pay discussions and it is important to recognise the nature of their work is reliant on funding and funding partners.

3. The Employer requires a focused effort on all parties to support the work to create a viable and sustainable business operation in a commercial environment which can meet its financial commitments.






RECOMMENDATION:

This matter was before the Court in 2020, at which point the Court was given an undertaking that the Employer would open its books to the Union and engage with them. It is regrettable that the matter has not been resolved since then.

The Court now recommends as follows;

1. The parties should engage immediately to discuss an agreed pay determination mechanism within the company. If necessary, the parties should utilise the services of the Workplace Relations Commission to assist in reaching agreement.

2. This mechanism should include provision for details of the Employer’s financial circumstances to be shared with the Union, both in the short term and on an ongoing basis, should that be necessary to assist the parties in reaching agreement on pay and related matters.

3. The establishment of a pay determination mechanism, among other benefits to the parties, may be used as a means through which the Union can pursue its wish to move numbers of its members above national minimum wage rates, subject to the sustainability of any such progress and having regard to the Employer’s financial position.

4. With regard to those Workers whose pay is above national minimum wage rates and whose pay has not increased since 2009, the Court recommends that their pay be increased by 3% from 1 February 2022 with a further 1% increase from 1 October 2022, with the payment of the latter increase to be subject to further discussion between the parties as part of the more general discussions set out in 1. above and having regard to the ongoing financial situation of the Employer.

5. Future pay claims should be processed through the pay determination mechanism that forms part of this Recommendation.

	Signed on behalf of the Labour Court
	Tom Geraghty
CO'R	______________________
18 January 2023	Deputy Chairman