INDUSTRIAL RELATIONS ACTS, 1946 TO 2001
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
SARA LEE (IRELAND) LIMITED
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Duffy
Employer Member: Mr Pierce
Worker Member: Mr. Somers
1. Incentive bonus scheme.
2. The Company commenced production in Killarney in February, 2000. It manufactures ladies underwear for the European market. It currently employs approximately three hundred workers.
In March, 2000 a temporary bonus scheme was introduced in the plant which was to be replaced in due course by an incentive bonus scheme. The Company proposed an incentive bonus scheme based on performance. However, the Union is seeking an incentive scheme based on a percentage of the basic rate of pay.
The dispute before the Court concerns a claim by the Union on behalf of 170 members in relation to negotiating the details of the proposed incentive bonus scheme.
The dispute could not be resolved at local level. The dispute was the subject of two conciliation conferences under the auspices of the Labour Relations Commission held on the 29th of August, 2001 and on the 7th of September, 2001.
As agreement was not reached, the dispute was referred to the Labour Court on the 10th of October, 2001 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 30th of October, 2001.
3. 1. The revised incentive bonus scheme should be based on a percentage of the basic rate of pay.
2. The scheme should be introduced on fully negotiated terms.
3. It is essential that the fundamentals of the scheme are agreed from the beginning.
4. 1. The introduction of an incentive bonus scheme is essential to improving the performance and efficiency of the plant.
2. All employees were informed that the present bonus scheme was temporary and would be replaced by a performance related scheme.
3. The objectives set out in the proposed scheme are achievable by the workers. It is in the Company's interest to set targets which are achievable.
The revised incentive scheme as proposed by the Company should be introduced on the following basis:
1. The scheme should operate as an interim scheme for a period of nine months. After this period, the terms of a permanent scheme should be negotiated between the parties.
2. The parties should accept that in any future scheme the bonus rate should increase by reference to the maximum increases in the basic rate for production staff.
3. It is noted that the Company has proposed a fall back rate of £20 (25.39 Euro) per week, averaged over the initial 13 weeks of the scheme's operation. It is recommended that a similar fallback arrangement should apply in respect of the remaining part of the interim period referred to at 1 above.
Signed on behalf of the Labour Court
15th November, 2001______________________
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.