FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CONNACHT GOLD CO-OP LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Ms Tanham |
1. Non-payment of Towards 2016 Transitional Pay Agreement.
BACKGROUND:
2. The case concerns a dispute between Connacht Gold and SIPTU in relation to the non-payment of the Transitional Pay Agreement of Towards 2016.
The Union's position is that having concluded an agreement on the deferral of the pay increases management subsequently withdrew from the agreement and did not apply any wage increases to the workers despite significant financial investment and acquisitions in may areas of its business.
The Company's position is that its investments and acquisitions are vital to protect employment into the future and that payment of the increases as claimed would be totally unsustainable in the current economic climate.
The matter was not 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 matter was referred to the Labour Court on the 8th September 2011, in accordance with Section 26(1) of the Industrial Relations Act 1990. A Labour Court hearing took place on 14th February 2012.
WORKER'S ARGUMENTS:
- 3. 1. The parties concluded an agreement to defer payments of the due wage increases for nine months after which the increases would be paid. It is unacceptable that Management breach the Agreement despite investing heavily and paying high prices to milk suppliers while the workers subsidise the Company through what is effectively a reduction in pay.
COMPANY'S ARGUMENTS:
4. 1. The Company acted in good faith in relation to the agreement on the deferral of the wage increases. The Company has made only minimal profits in recent years and cannot sustain the costs of any increases in wages.
2. Given the deterioration of the economic climate and the subsequent changes to National Wage Agreements, the provisions of the Towards 2016 Transitional Agreement no longer have any relevance in the pay determination policies of the Company.
RECOMMENDATION:
The Court notes that there is a subsisting commitment on the employer's part to address the Union's claim in light of its financial and commercial circumstances. That commitment was freely entered into and, as a matter of good industrial relations practice, the employer is bound to honour that agreement.
It is noted that on foot of Recommendation LCR 20241 the parties have agreed to a process by which an independent assessment of the CoOperative's financial circumstances will be undertaken.
The Court recommends that when the report of this assessment becomes available the parties enter into early negotiations on the Union's claim in accordance with the subsisting agreement referred to above.
Signed on behalf of the Labour Court
Kevin Duffy
23rd February, 2012.______________________
AH.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.