INDUSTRIAL RELATIONS ACTS, 1946 TO 2001
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
TIPPERARY CO-OP SUPERVALU
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Duffy
Employer Member: Mr Carberry
Worker Member: Ms Ni Mhurchu
1. Increase in long service pay.
2. The dispute before the Court concerns a claim by the Union on behalf of its members for an increase in service pay.
The current service pay at Tipperary Co-Op Supervalu is as follows:-
€0.63 per week after 5 years service
€1.27 per week after 10 years service
€1.90 per week after 15 years service
€2.54 per week after 20 years service.
The Union's claim is as follows:-
€19.05 per week after 5 years service
€25.39 per week after 10 years service
€31.74 per week after 15 years service
€38.09 per week after 20 years service
€44.44 per week after 25 years service.
The Company made an offer to pay an extra 3% after 15 years service in return for a number of productivity measures. The Union states it has no problem implementing the productivity measures but the offer of 3% falls short of its members' expectations.
The dispute could not be resolved at local level and was the subject of two conciliation conferences under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 25th of March, 2002, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place in Clonmel on the 6th of August, 2002, the earliest date suitable to the parties.
3. 1. The Company is in competition with a similar company in the town which offers its employees superior pay rates and service pay of €0.19 per hour after 6 years service and €0.51 per hour after 10 years of service.
2. The workers concerned are willing to take on board the sort of productivity measures sought by the Company but not for an offer of 3% after 15 years service.
4. 1. All employees have received all increases due under National Wage Agreements. The Company operates a generous sick pay scheme and provides a defined contribution pension scheme.
2. The offer of a 3% increase after 15 years service in return for a number of productivity measures was unacceptable to the Union.
3. The Union's claim is unrealistic and cannot be conceded as it is cost increasing and in breach of the current National Wage Agreement.
The Court notes that the parties have agreed to approach the Union's claim on the basis of productivity bargaining. However, the Court is not satisfied that the stance taken by either party in those negotiations represents a realistic final position.
The Court recommends that the parties should resume direct negotiation. In those negotiations they should seek to identify further cost-offsetting measures. They should also have regard to the fact that the current rates of service pay have not been revised for a considerable time and in consequence their value has eroded significantly.
Signed on behalf of the Labour Court
27th August, 2002______________________
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.