INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Duffy
Employer Member: Mr Grier
Worker Member: Mr Nash
1. Finishing bonus.
2. Clare County Council awarded the Company the contract to build the 21 km Ennis Bypass. The project is nearing completion, albeit behind schedule and over budget. The Union is seeking a finishing bonus of 1 to 2 weeks additional pay. The project has gone over budget for several reasons, including inaccurate estimates of costs of labour and materials. The project is also behind schedule for and as a result, the Company has had to pay financial penalties to Clare County Council.
- This 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 26th November 2007 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 27th February 2008, the earliest date suitable to the parties.
3. 1. The payment of a finishing bonus is becoming the norm on large construction and civil engineering projects.
2. The project is over-budget because, in tendering for the contract to build the Ennis Bypass, the Company failed to take into account the true cost of its legislative obligations towards its workers.
3.The workers put in huge effort during the construction of the Ennis Bypass
4. 1.The payment of a finishing bonus is not the norm on large construction and civil engineering projects, in Ireland or abroad.
2.The payment of a finishing bonus was not part of the original bargin entered into between the Company and its employees.
3.The Company's projected loss on the Ennis Bypass could be as much as €45 million.
The information available to the Court indicates that while there are instances of where a finishing bonus has been paid, it has not been established as the norm within either the construction or the civil engineering sector.
Accordingly, the Court does not recommend concession of the Union’s claim.
Signed on behalf of the Labour Court
6th March, 2008.______________________
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.