INDUSTRIAL RELATIONS ACTS, 1946 TO 2004
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
BORD NA MONA P.L.C.
- AND -
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
Chairman: Ms Jenkinson
Employer Member: Mr Murphy
Worker Member: Mr O'Neill
1. Review of Transport/Rail Supervisors Performance/Productivity Bonus Scheme.
2. In 2004 following intensive negotiations with the Union the Company introduced an incentive bonus scheme for Supervisors who were not already included in any incentive scheme particularly those employed in transport and rail shifting operations. The scheme was to be reviewed after one year in operation.
The dispute before the Court concerns a claim by the Union for improvements in the yield from the Transport/Rail Supervisors' Performance/Productivity Bonus Scheme, introduced in 2004 and currently under review.
The dispute could not be resolved at local level and was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 19th April, 2006, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 19th July, 2006.
3. 1.The Supervisors are attempting to get a bonus scheme in place that will adequately reward their efforts.
2. The Workers being supervised are earning considerably more than the Supervisors in bonus payments.
3. The Union's members have already given substantial productivity and cooperation within the life of the current agreement.
4. 1.The current system was introduced as a total add-on to the Supervisors' remuneration package which up to then was based on basic rate (plus shift factor where applicable) and a significant level of overtime earnings.
2.The performance productivity payment amounts to approximately 20% of the Supervisors' basic pay. This represents the maximum level of performance payments within the Company.
3. The Company's proposals of 26th August, 2005, wouldallow the Supervisors achieve the maximum payout from the scheme in any year where sales targets and performance standards had been achieved.
The matter before the Court concerns a claim by Transport/Rail Supervisors for a substantial increase in the level of Performance/Productivity Bonus earnings. The Union’s claim was based on the relative difference between the output from the Supervisors' bonus and that paid to those they supervise, which the Union claimed was in the region of €15,000 per annum. Having received confirmation from the Company of the level of bonus earnings for the year 2005 for the group supervised, the figures show that the level of output was €5826 plus a bonus for reduction of hours worked of €2474, compared to Performance/Productivity Bonus €5200 - €5400 for the Supervisors.
In an effort to resolve this dispute the Company put forward a proposal dated 26th August 2005 to the Union which would allow the Supervisors achieve the maximum payout from the Scheme in any year where sales targets and performance standards are achieved. The proposals also provided for a greater share being paid on a weekly basis. This proposal was rejected by the Union.
The Court notes that the performance productivity payment on offer amounts to approximately 20% of Supervisors' basic pay and is subject to adjustments in line with pay increases under national wage agreements. Having considered all aspects of the claim, the Court is of the view that a performance productivity bonus which yields approximately 20% of basic pay - the maximum level of performance payments within the Company – is not out of line. Therefore, the Court accepts that the offer made by the Company on 26th August 2005 is fair and reasonable and should be accepted by the Union.
The Court so recommends.
Signed on behalf of the Labour Court
25th September, 2006______________________
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.