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 Duffy
Employer Member: Mr Grier
Worker Member: Mr Nash
1. Indexation of Hygiene Bonus - Rehearing Arising From LCR18472
2. This case concerns a dispute between the Company and Union in relation to the indexation of a hygiene bonus which was implemented in 2001. The Company is involved in the meat industry and this dispute relates to its plant in Rathkeale, Co Limerick.
This matter was previously before the Court and the Court recommended (LCR 18472) that the parties engage with a view to agreeing an adjustment in the allowance, having regard to the increase in basic pay since the allowance was introduced, cost of living increases and the reason the allowance was introduced.
Dicsussions took place with a view to reaching agreement on the allowance. The Union's position was that increases should reflect the Consumer Price Index (CPI) and national wage agreements, a review be carried out every 18 months and that retrospection be paid to October 2004 when the claim was lodged in the Labour Realtions Commission (LRC).
The Company's position is that increases in the allowance should be confined to the basic rate of pay (CPI). The Company also state that retrospection to the date sought by the Union is in breach of Sustaining Progress and should be rejected.
The parties failed to reach agreement on the adjusted amount of the review and the date from which the new rate should apply. The dispute was referred to the Court on 7th March 2006 in accordance with Section 26(1) of the Industrial Relations Act,1990. A Labour Court hearing took place on 6th December, 2006.
3 1. Future increases in the allowance/bonus should reflect the CPI and also National Wage Agreements (or the going rate in the absence of a national wage agreement).
2. The claim was formerly lodged with the LRC in October 2004. It is essential that increases be awarded from that date to demonstrate the importance of following procedures with regard to issues in dispute.
4. 1 An 18 month review of the allowance is acceptable on the basis that increases reflect basic rates of pay- CPI.
2. Concession of the claim with regard to retrospection to October 2004, is in beach of Sustaining Progress and should not be accepted.
The Court notes that there are two net issues on which the parties have failed to reach agreement, namely the amount by which bonus should increase and the effective date of
the first increase.
Having considered the submissions of the parties and having regard to the minor nature of the claim, the Court recommends as follows:-
Rate of increase
The Court recommends that the increase should be 76 cent per kill day.
In the circumstances of this case the Court recommends that the effective date of the increase recommended above should be 1st February 2006.
Signed on behalf of the Labour Court
22nd December 2006______________________
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.