FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PPI ADHESIVE PRODUCTS LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Doyle Worker Member: Mr O'Neill |
1. Payment of the 2009 Christmas bonus.
BACKGROUND:
2. The Company is based in Waterford for almost 40 years and is engaged in the manufacture of specialist adhesive tapes for clients in the medical, automotive and computer business. The Union is claiming that the December 2009 Christmas bonus valued at one month's pay should be paid in the normal way but the Company contends that due to the current economic difficulties that the Company find itself in, prevents full payment being made.
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 4th January, 2010, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 28th April, 2010.
UNION'S ARGUMENTS:
3. 1. It is not a bonus within the normal meaning of bonus payments, but in fact is part of the terms and conditions of employment which was agreed in August, 1986 as part of the wage negotiations.
2. The bonus was never linked to the Company's performance but is linked to each individuals attendance and unauthorized absence and lateness at work, the amount already paid to be deducted as appropriate.
COMPANY'S ARGUMENTS:
4. 1. The decision to withhold part of the Christmas bonus was made wholly on the basis of Company performance and the bonus paid in fact added to the financial losses for 2008/2009.
2. The payment is dependent on the performance of the Company, genuine efforts were made to go some way towards reaching the expectations of Employees even though the sales and financial situation did not warrant it.
RECOMMENDATION:
The claim before the Court on behalf of general operatives, quality control staff, office staff and foremen is for payment of the 2009 Christmas Bonus. A month’s pay has been paid at Christmas since the bonus was first introduced in 1987.
Due to the Company’s financial circumstances, it proposed to pay a partial payment of the Christmas 2009 bonus in two phases. Workers had worked a 3-day week for most of 2009 due to difficulties experiences by the Company.
In an effort to address the Company’s difficulties the Union made an offer to accept 3/5th of the bonus payment for Christmas 2009.
In all the circumstances of this case the Court is of the view that the Union’s proposal (i.e. 3/5th of the bonus payment for Christmas 2009) is reasonable and should be accepted by the Company. Therefore the Court recommends that the balance of the bonus due should be paid within a period of 2 weeks from the date of this recommendation.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
28th May, 2010______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.