INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
(REPRESENTED BY IBEC)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Hayes
Employer Member: Ms Cryan
Worker Member: Ms Tanham
1. Pay Increase.
2. The case before the Court concerns a dispute between the Employer and the Union on behalf of its members employed by the Company at its manufacturing plant located in Kingscourt, Co Cavan. The dispute relates specifically to the Union's claim for a pay increase. The Union contends that the Workers by means of enduring losses in pay and terms and conditions of employment over a number of years have contributed significantly to the viability of the Company and believes that in line with other companies in the locality they should be awarded an increase in pay. The Employer rejects the Union's claim, arguing that it is not in a financial position to concede the Union's cost-increasing pay claim.
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 28th March, 2014, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 12th June, 2014.
3. 1. The Workers have not received a pay increase since 2007.
2. The Workers have suffered a reduction in pay and terms and conditions of employment since 2010. The Union contends that to date this has not been reviewed or addressed by the Employer.
3. The Union maintains that the Company is currently profitable and is in a financial position to award a pay increase to its members.
4. 1. The Employer must continue to maintain current cost levels in order to remain viable. As a result it is not in a position to increase its payroll costs.
2. The Employer contends that any increase in costs will adversely affect its competitiveness.
3. Concession of the Union's claim would affect the long term future of the Company.
Having carefully considered the submissions of both parties to this dispute the Court recommends that the Company, in return for a commitment to cooperate with normal ongoing change in the plant, increase the pay of the workers concerned by 2% for a period of 12 months with effect from 1 October 2014.
The Court so recommends.
Signed on behalf of the Labour Court
25th June 2014______________________
Enquiries concerning this Recommendation should be addressed to Sharon Cahill, Court Secretary.