LCR22808

1. Pay Dispute

BACKGROUND:

2. This dispute was the subject of discussions at a local level and three Conciliation Conferences under the auspices of the Workplace Relations Commission on 3 March 2022, 22 November 2022 & 1 June 2023. As agreement could not be reached the Union referred the case to the Labour Court on 2 June 2023 in accordance with Section 20 (1) of the Industrial Relations Act, 1969, and agreed to be bound by the Court’s Recommendation.
A Labour Court hearing took place on 23 August 2023

RECOMMENDATION:

The within dispute is a claim for a pay increase brought by the Union on behalf of four industrial cleaners (‘the Workers’) employed by Bidvest Noonan (ROI) Limited (‘the Company’). The dispute was referred to the Court by the Union pursuant to section 20(1) of the Industrial Relations Act 1969 notwithstanding the Parties’ prior engagement in a series of conciliation conferences under the auspices of the Workplace Relations Commission. It appears that process was not fully exhausted and the Court, therefore, did not have the benefit of the usual confidential report from the Conciliation Officer that would normally accompany a referral of a dispute under section 26(1) of the Industrial Relations Act 1990.

It is common case that the Workers’ terms and conditions have been red-circled since 2018 when the Company introduced a new pay structure and other arrangements to ensure the long-term viability of its business. Since then, it appears that approximately 96% of the relevant workforce has voluntarily opted into the new working arrangements. The Workers form part of the 4% that have chosen to continue on the pre-2018 terms and conditions.

The Workers received a restoration of 2.5% pay in 2018 but otherwise have not received any upward adjustment in their pay since 2008. The lowest paid Worker in the group is remunerated at €12.09 per hour; the highest at €12.69 per hour. They are seeking an increase in pay to €13.90 per hour along with the same travel allowances that apply to their colleagues who have opted into the new pay structure.

The Company submits that the Workers’ pay would be significantly enhanced were they to forego their red-circled terms and conditions and opt into the pay structure recommended by the Labour Court in 2018. The Company also submits that is willing to permit the Workers to trial the new pay structure and associated arrangements for a period with the option to revert thereafter to their current arrangements. Finally, is submitted on behalf of the Company that the Workers – even if they decide not to move from their current arrangements – will receive a pay increase with effect from 1 April 2024 in line with the provisions of the Employment Regulation Order for the contract cleaning sector.

The Union does not accept that the Workers' remuneration would increase if they opted to move to the 2018 arrangements nor does it accept that the Workers' remuneration is regulated by the ERO.

Discussion and Recommendation

Having carefully considered the Parties’ written and oral submissions, it is apparent to the Court that they are not ad idem in relation to a number of key fundamental factual matters that bear on the resolution of the within dispute: i.e. the applicability or otherwise of the ERO to the Workers and the likely impact on their remuneration should they choose to move the new pay structure.

The Court, therefore, is of the view that the Parties would benefit from further intensive engagement under the auspices of Conciliation Service in relation to the aforementioned issues and related matters, following which it would be open to them to jointly refer any outstanding issues to the Court pursuant to section 26(1). The Court recommends that the Parties undertake that engagement with the assistance of the Conciliation Service in early course.

The Court so recommends.

	Signed on behalf of the Labour Court
	Alan Haugh
DC	______________________
25 August 2023	Deputy Chairman