Labour Court Database
File Number: CD92200
Case Number: LCR13722
Section / Act: S26(1)
Parties: AUTOMOBILE ASSOCIATION - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL
A dispute concerning commission rates.
The Court having considered the views expressed by the parties in
their oral and written submissions finds that prior to agreement
reached in 1991 on terms and conditions for sales staff the
Association did not pay the level of commission in force in the
car dealership scheme until membership had been confirmed.
The agreement calls for an increase in the rate of commission, the
Court finds that no change is proposed in the method of payment.
Accordingly the Court finds the Association are not in breach of
its agreement and there are no grounds for concession of the
Division: MrMcGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD92200 RECOMMENDATION NO. LCR13722
INDUSTRIAL RELATIONS ACTS 1946 TO 1990
SECTION 26(1) INDUSTRIAL RELATIONS ACT, 1990
PARTIES: AUTOMOBILE ASSOCIATION
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL
1. A dispute concerning commission rates.
The Association operates a scheme known as the "Car Dealership
Scheme". The scheme provides for the sale of blocks of membership
to car dealers. This membership is sold by the dealer to his
customers and is also used as an incentive by dealers when they
Prior to 1991, the Association's salesmen received 6.5% commission
on each membership sold. The commission rate was increased in
1991 to 15%. The association pays 6.25% to the salesman "up
front" when they sell membership to a car dealer but does not pay
the balance until it is sold to individual customers.
The Union claims that the Company is in breach of the 1991
agreement (details supplied to Court) in that its members do not
receive 15% "up front" when a sale has been completed with a car
dealer. The Company rejects the Union's claim and argues that a
sale of membership is not finalised until it is sold to an actual
individual, who is then officially registered as a member.
The dispute was referred to the Labour Relations Commission under
Section 26(1) of the Industrial Relations Act, 1990. A
conciliation conference was held on 14th February, 1991 at which
agreement was not reached. The case was referred to the Labour
Court on 7th April, 1992.