INDUSTRIAL RELATIONS ACTS, 1946 TO 2004
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr McGee
Employer Member: Mr Grier
Worker Member: Mr. Somers
1. Introduction of a Service Pay Scheme.
2. The Company is based in Castlebar Co. Mayo. It is involved in the knitwear industry and employs approximately 20 workers. The Union is seeking the introduction of a Service Pay Scheme to recognise workers' service in the Company. Management rejected the claim. The dispute was referred to the Labour Relations Commission. A conciliation conference was held but agreement was not reached. The dispute was referred to the Labour Court on the 28th April, 2004 in accordance with Section 26 (1) of the Industrial Relations Act, 1990. A Court hearing was held in Castlebar on the 2nd November, 2004.
3. 1. Many workers have long service in the employment. They have remained loyal and committed to the Company. It is necessary to recognise this service in a meaningful way. This should be done by putting in place some form of incremental scale which would reward service and experience.
2. While there is a service award scheme in place which provides gifts at intervals of five years these are seen by the workers as a token gesture and while appreciated, do not address the Union's claim.
3 The claim involves a small number of workers and its concession would not involve an exorbitant cost.
4. 1. The Company is in a difficult trading position. It has agreed to pay the terms of the Sustaining Progress (SP) Agreement. The Company cannot agree to add to its costs at this time by to the introduction of a Service Pay Scheme.
2. Over the years the Company has made small but significant improvements to the welfare of staff in relation to Bonus Calculation, Annual Attendance Awards, Service Recognition, Sick Pay Scheme.
3. The claim is cost increasing and precluded under the SP Agreement.
The Court considers that the claim as presented is in breach of Clause 1.5 of the pay provisions of "Sustaining Progress" and does not, therefore, recommend its concession.
However the Union may, if it so wishes, discuss locally with the Company its offer to encash the value of the gifts presently awarded for service.
Signed on behalf of the Labour Court
8th November, 2004______________________
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.