INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Flood
Employer Member: Mr Pierce
Worker Member: Mr Rorke
1. Changes in commission-based payments.
2. The Company operates a linen rental service to hotels, restaurants and factories. It currently employs over 120 staff which includes nine drivers who are involved in the daily delivery and collection of linen. They also collect cash and cheque payments from customers.
At present the drivers are paid a basic wage plus 1% commission on turnover and 1.5% commission on cash collection.
In recent years customers have been transferring to a direct debit system of payment.
The dispute before the Court concerns a claim by the Union on behalf of five drivers for compensation for loss of earnings due to the change to the direct debit system. The issue was discussed at local level but could not be resolved.
The dispute was the subject of conciliation conferences under the auspices of the Labour Relations Commission held between the 22nd of August, 1996 and the 14th of December, 1998. As agreement was not reached the dispute was referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 24th of March, 1999.
3. 1. Customers are being encouraged to transfer to a direct debit system of payment, reducing the amount of cash collected and a loss of earnings for the drivers.
2. The drivers should maintain their earnings without increasing their workload.
3. The Union is seeking 2.5% commission on turnover and the retention of the 1% commission on cash collection for the five drivers concerned.
4. 1. There has been no loss of earnings to drivers as a result of customers transferring to the direct debit system.
2. The Company put forward four main proposals all of which were rejected by the Union.
3. The final proposal is to increase the turnover commission from 1% to 2% in lieu of the cash collection commission of 1.5% and a once off payment of £1,000 to be paid to each driver. This offer is fair and reasonable. It was rejected by the Union.
The Court considered the written and oral submissions made by the parties. Having considered all the information before it, the Court recommends that the employees accept the Company's proposed method of payment of commission in the future.
The Court also recommends that the employees agree to the conditions laid out by the Company, in its submission, in return for a once payment of £1,000 but that this payment be increased to £3,500 in full and final settlement of this case.
Signed on behalf of the Labour Court
13th April, 1999______________________
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.