LCR17324

FULL RECOMMENDATION CD/02/353 RECOMMENDATIONNO.LCR17324 (CCADRS180) INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : NOVARTIS RINGASKIDDY LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Carberry Worker Member: Mr O'Neill

SUBJECT:
1. Pay and conditions.


BACKGROUND:

2. The dispute concerns the Union's claim on behalf of 56 Laboratory Analysts in Novartis for an appropriate pay salary structure.

In November, 2001, the 56 Analysts joined the Union and the Union requested a meeting with the Company. In February, 2002, the Director of the Advisory Service of the Labour Relations Commission (LRC) chaired negotiations between the parties. Proposals from these discussions were rejected by the workers. The history of the pay structure for the Analysts has been characterised by individual pay. The Union believes that the structure was flawed and that the workers should be paid in line with laboratory analysts in the pharmaceutical/chemical industry. The Union's claim is as follows:

• Salary Range €31,745 to €44,440.
  • Pay progression on service on 1st January each year.
  • Ten points on the scale.
  • Assimilation on to the scale based on external and internal rounding up in line with recent discussions on assimilation.
  • Full retrospection back to April, 2002.
  • PPF or enhanced PPF percentage increases in addition to the salary scale as per industry norm.

The Company has rejected the claim and believes that its offer at the LRC meetings was fair. That offer was as follows and was to be based on years of service and competetency norms:

The salary scale for Analysts with effect from 1st April 2002, will be €25,000 to
€40,000 per annum structured as follows:-

• 
  Entry Point €25,000
  1st year €27,000
  2nd year €29,000
  3rd year €31,000
  4th year €33,000
  5th year €35,000

As the parties did not reach agreement, the dispute was referred to the Labour Court on the 28th of June,2002, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 6th of November, 2002, in Cork, the earliest date suitable to the parties.

• UNION'S ARGUMENTS:
  

3. 1. The Analysts pay levels have been out of line with the industry for some time(details supplied to the Court).

2. The Company is a very profitable employer within the industry. The workers concerned perform a key role in the development and success of the Company.

3. The Company has accepted the need to review pay but it has failed to address the issues of low pay, assimilation and full retrospection.

COMPANY'S ARGUMENTS:

4. 1. The Company has invested approximately €800 million to date.

2. Both parties agreed to accept the proposals made at the LRC. The Company believes that the offer was very generous. However, the offer was rejected by the Analysts.

3. Comparisons with other companies in the industry show that the pay scales in Novartis are very good. There is no justification in conceding the Union's claim.


RECOMMENDATION:

The Court, having considered the written and oral submissions made by the parties, recommends as follows:-

1. The Company to implement the offers it made on assimilation and the starting salary rate.

2. The Union in return to accept an implementation date of 1st August, 2002.



Signed on behalf of the Labour Court



Finbarr Flood
19th November, 2002______________________
CON/MB.Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.