INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Hayes
Employer Member: Ms Doyle
Worker Member: Ms Tanham
1. Pay claim.
2. This dispute concerns a claim by the Union for a 2% increase in pay for a period of 12 months with effect from April 2014. The Company argued that it was not in a position to absorb such an increase in the cost base at this time. An agreement was reached with the Union at the Labour Relations Commission (LRC) for the payment of a 2% lump sum in the current financial year but this was rejected by the Union members. 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 23rd May 2014, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 12th August 2014.
3. 1. Robert Roberts is part of the Food and Drink Division of DCC, one of Ireland’s largest and most successful Public Companies.
2. The Union members have not received a pay increase over the past seven years.
3. Companies of a similar size within the food and drink sector have agreed pay increases of between 1% and 3.5% on average.
4. 1. A pay freeze was introduced in April 2009 as a direct result of the significant reduction in business that the company experienced at that time.
2. The Company has been transparent about the challenges that it has faced over the past six years and the Managing Director makes regular presentations to the Workers on the trading and macro-economic environment.
3. Following a series of meetings in the LRC, an agreement was reached with the Union to pay a lump sum of 2% of basic annual salary and an enhanced health and safety program. That agreement is reasonable and should be upheld by the Court.
Having carefully considered the submissions of both parties to this dispute the Court recommends that the draft Agreement concluded at the LRC be accepted by both parties at this time.
The Court further recommends that the review contained in the LRC proposals should take place between February and April 2015, to include a review of the Company’s trading and financial outturn for the current financial year to determine whether the 2% adjustment can and should be consolidated into the basic hourly rate of pay at that time.
The Court so recommends.
Signed on behalf of the Labour Court
15th August, 2014.Deputy Chairman
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.