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2002

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LCR17288

FULL RECOMMENDATION

CD/02/408
RECOMMENDATIONNO.LCR17288
(CC02/4056)
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990



PARTIES :
SUPER VALU (RAHENY)
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)

- AND -

MANDATE


DIVISION :

Chairman: Mr Flood
Employer Member: Mr Pierce
Worker Member: Mr O'Neill
SUBJECT:
1. Claim for pay increase and review of components of the pay structure.


BACKGROUND:

2. Oxtron Limited trading as Supervalu, is a family run supermarket business that currently employs 400 people at four locations, namely, Killester, Raheny, Drogheda and Wexford.
  • In early 2002, the Union requested an early application of the second phase, 5.5%, of the Programme for Prosperity and Fairness (PPF). The Company refused the claim. At a local level meeting, the Union extended it's claim to include improvements in the rates of pay/review of pay structures. Agreement was not reached.











  • The dispute was referred to the Labour Relations Commission and a conciliation conference took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 17th July, 2002, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 1st October, 2002, the earliest date suitable to both parties.

UNION'S ARGUMENTS:

3. 1.The workers in the retail industry generally are one of the lowest paid groups in the country. The pay rates in the Company have fallen significantly behind the sector.

2. Long serving staff are relied on to train new recruits and to ensure that the ever increasing standards with respect to merchandising and hygiene are maintained. The long service increment in the Company is inadequate in today’s market.

3. A recent development in the sector is the abolition of the under 18 rate in the larger stores. The members who are under 18 perform the same range of duties as their colleagues who are over 18.

4. Since May, 2002, there have been significant developments in the retail industry, including rates of pay, long service increments and the abolition of the under 18 rate.



COMPANY'S ARGUMENTS:

4. 1. All increases due to staff under the Programme for Prosperity and Fairness (PPF) have been paid. This claim is a cost-increasing claim and is precluded under the PPF.

2. The Company and the Union made an agreement on basic pay and conditions of employment in May, 2000, and the company has revised the sick pay scheme to ensure compliance with legislation.

3. Concession of the claim would have adverse consequences for competitiveness.

4. The rates of pay at Oxtron Limited are extremely favourable among independent retailers.









RECOMMENDATION:

The Court having considered the written and oral submissions made by the parties finds that the claim is precluded under the terms of the Programme for Prosperity and Fairness (P.P.F.).









Signed on behalf of the Labour Court



Finbarr Flood
11th October, 2002______________________
CH/MB.Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Caroline Hayes, Court Secretary.




 
 
 
 
 
 
 
 
 

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