LCR22790

1. New Pay Agreement

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 19 April 2023 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 13 July 2023.

RECOMMENDATION:

Background to the Dispute

The within dispute concerns the terms of a proposed pay agreement to succeed the parties’ most recent agreement that expired on 31 August 2022. Both parties are ad idem in relation to the desirability of putting in place an agreement for a period of two years, backdated to 1 September 2022.

The Union’s claim is for a 6.25% per annum pay increase for the duration of the proposed agreement. In support of this claim, the Union cites the Company’s exceptionally strong financial performance over recent years and also the current high rate of inflation in the economy. Nevertheless, it is also acknowledged on the part of the Union that the rate of increase in pay it is seeking is “over and above what has been achieved in the sector to date”.

The Company’s offer is of a total pay increase of 7% over the two years, frontloaded at 4.5% for the first year, followed by 2.5% for the second year. It is the Company’s submission that the Union’s request for a total pay increase of 12.5% over two years is out of line with pay agreements achieved elsewhere in the industry. The Company also refers to a once-off tax-free gift voucher of €1,000.00 given by the Company to all colleagues in February 2023 which it submits (when grossed up) is equivalent to almost 2% of pay for most of the workers encompassed by the within pay claim.

Both parties referred to an agreement for a 9% pay increase over twenty months negotiated in a named comparator company. The Company’s representative, however, informed the Court that the 9% pay increase included a 2% increase that the relevant parent organisation had sanctioned on a worldwide basis to counter the cost-of-living increases that followed on the Ukraine situation.

Recommendation

Having regard to the parties’ submissions, the terms of the pay agreement achieved in the named comparator organisation and the once-off voucher payment made to Pfizer colleagues in February 2023, the Court recommends the parties agree the following pay increases:

• 
  • 4.5 % for the period 1 September 2022 to 31 August 2023; and

  • 4.0% for the period 1 September 2023 to 31 August 2024.

	Signed on behalf of the Labour Court
	Alan Haugh
AR	______________________
17 July 2023	Deputy Chairman