FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : MATER PRIVATE HOSPITAL - AND - INMO SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Cost Reduction
BACKGROUND:
2.
UNION'S ARGUMENTS:
COMPANY'S ARGUMENTS:
RECOMMENDATION:
The Court notes that the pay of all grades employed by the Hospital are based on direct parity with the pay of corresponding grades in the public health service. On foot of that relationship all previous pay adjustments in the public service have been applied to those grades.
This pay relationship has brought significant benefits to the staff of the Hospital over many years. The Union’s have told the Court that they wish to maintain that pay relationship.
Pay has been reduced in the public sector without agreement and those reductions are currently the subject of an industrial dispute. There are, however, negotiations currently in progress with a view to resolving that dispute.
The Hospital is experiencing significant financial difficulties and this is acknowledged by the Unions. The Hospital contend that the established pay relationship with the public sector entitles it to reduce pay in line with the public sector and, moreover, it is necessary to do so in order to address its deteriorating financial circumstances.
It is noted that the Hospital applied the pay cuts in issue without negotiations or agreement with the Unions but that following discussions at the LRC the pay rates were restored pending a Court investigation of the dispute.
Having regard to all the circumstances of the case, and having particular regard to the financial circumstances of the Hospital, the Court recommends that the dispute be resolved on the following basis: -
•The long established pay parity between the Hospital’s staff and corresponding grades in the public sector should be maintained. Consistent with that general principle the pay scales of all grades employed by the Hospital should be adjusted as follows: -(1) Any agreement reached in the current negotiations between public sector employers and trade unions in relation to public sector pay should be applied to those associated with this dispute.(2) In the interim, (or in the absence of agreement in those negotiations) the de-facto rates applying in the public sector should apply to the staff of the Hospital from the date referred to at (3) below.(3) The revised pay scales under either (1) of (2) above should take effect four weeks after the date of this Recommendation. In that period the parties should have discussions on any matters relating to the implementation of the pay adjustments.
•Any residual or further issues concerning the financial or commercial circumstances of the Hospital should be the subject of discussions between the parties including the full use of normal dispute resolution machinery.
•It is noted that the Unions believe that the employee shareholding should be entitled to representation on the Board of the Company. It is further noted that the Hospital are not opposed in principle to that suggestion. The Court is satisfied that in accepting this recommends and by cooperating in its implementation, the staff will make a significant contribution towards addressing the current financial difficulties of the Hospital. In consideration of that contribution the Court further recommends that the Hospital respond positively to the Union’s suggestion of Board representation for the employee shareholding and that the parties engage in discussions, with a view to reaching agreement, on giving effect to that suggestion.
Signed on behalf of the Labour Court
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NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.