LCR22814

1. Buy out of Benefits

BACKGROUND:

2. This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 2 May 2023, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 26 June, 2023.

RECOMMENDATION:

The dispute before the Court relates to the Employer’s proposal to buyout and modify benefits that have been enjoyed by staff for a number of years. Following engagement between the parties under the auspices of the WRC the following proposals were put forward and balloted on by SIPTU members who rejected same.

Attendance Bonus: Buyout at 1.5 times value averaged over last three years. Bonus for 2022 to be paid as normal.

Uncertified bonus maximum 6 days: 1.5 times the value based on 2022 only as requested. Uncertified bonus paid as normal for 2022.

First Aid bonus;2022 bonus paid as normal. Maintain opportunity to learn/update key life skill. €350 Voucher pa

In House medical scheme: Discretionary benefit. €250 contribution for 2023 only to cost of HSF or Voucher

Site scorecard bonus guarantee paid in accordance with the actual site score. Effective from 1^st January 2023 site wide.

A goodwill payment as follows, was also offered.

€200 for staff who joined post 2^nd June 2020

€500 for staff who joined pre 2020 and have up to 10 years’ service.

€800 for staff who joined pre 2020 and have more than 10 years’ service.

The Employer submitted that to remain viable in a very competitive market it needs to achieve savings. They have been in discussions on the compensation for loss of these benefits since 2022 and the Employer has gone as far as it can in terms of compensation. The new arrangements have been implemented site wide since 1^st January 2023. The Employer submitted that since the start of the process they have conceded on a number of issues and that the proposals set out above are fair reasonable and in line with Industry norms.

The Union submitted that its member’s had rejected these proposals in a ballot. The Worker’s preference would be to retain the benefits. However, it is accepted that they have engaged with the Employer in respect of the buyout of same. The Union are looking for the loss to be compensated at more than 1.5 times the loss, and for an increase in the goodwill gesture. The Union accepts that a buyout of 1.5 times the loss is in line with what the Labour Court would normally recommend.

Discussion

The Court notes the Employer statement that the actual scorecard so far this year is 3 which is in line with the minimum that was previously guaranteed. As acknowledged by the Union at the hearing, in terms of buyout, the Court tends to recommend buyout at 1.5 times the loss. Nothing was put before the Court in the course of this hearing that would persuade the Court to depart from that position. In order to resolve this issue, the Court is recommending that the goodwill payments be amended on the following basis.

€200 for staff who joined post 2^nd June 2020 to be increased to €400.

€500 for staff who joined pre 2020 and have up to 10 years’ service to be increased to €800.

€800 for staff who joined pre 2020 and have more than 10 years’ service to be increased to €1,000.

These payments to be made in the most tax efficient manner.

The Court so recommends.

	Signed on behalf of the Labour Court
	Louise O'Donnell
CO'R	______________________
5 September 2023	Deputy Chairman