FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IRISH LIFE CENTRE - AND - UNITE THE UNION DIVISION : Chairman: Mr Hayes Employer Member: Ms Cryan Worker Member: Mr McCarthy |
1. Pay Claim, Restoration of Profit Sharing & Bonus Scheme and full payment of PRP Bonus
BACKGROUND:
2. This case concerns a dispute between the Company and Union in relation to Management's proposals to introduce changes to terms and conditions of employment. Mangement contends that the Union did not enter into any meaningful discussions on the proposed changes and instead balloted its members for industrial action. Management further contends that if the Union were to consider the proposals put forward the issues in dispute could be resolved.
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 20th February 2014 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 17th April 2014.
UNION'S ARGUMENTS:
3 1 The Union has been seeking an increase in pay since 2010. Management has refused to restore existing pay agreements and awards systems and has introduced a pay freeze for 2014 despite significant profit levels over the past number of years.
2 The Union's claim for a cost of living increase of 5% from 2011 to date, restoration of incremental pay scales, preservation of Performance Related Pay Ranges, the restoration of the agreed Profit Share Scheme and the protection of established terms and conditions of employment is reasonable and should be conceded.
3 The workers have shown great loyalty to the Company and have contributed to the success and profitability of the organisation. Management's commitment to restore established terms and conditions should now be honoured.
COMPANY'S ARGUMENTS:
4 1 The Union has not considered the proposals put forward by management. The Company has already implemented pay increases for certain staff, agreed additional pension contributions and has agreed to pay bonus payments for 2013 which have been increased to reflect pre pay reduction levels.
2 The Company cannot agree to the restoration of the Profit Sharing Scheme as it does not operate such a scheme in any of its subsidiaries. Bonus ranges for clerical and support staff will remain unchanged. These reductions are proposed to apply to specialist and management staff only. There are also proposals on an increase in pay for lower paid staff and an annual review to ensure pay rates remain in line with industry norms.
3 Having invested heavily in the Irish market, the Company must manage its business effectively to secure a return on its investment. The Company is committed to its staff and views its response to the issues before the Court as fair and reasonable.
RECOMMENDATION:
Having carefully considered the submissions of both parties to this dispute the Court recommends that the parties, without prejudice to either sides position, engage, with the help of the LRC if necessary, on all outstanding matters with a view to reaching agreement within a period of 12 weeks from the date of this recommendation. The parties should further agree to refer all matters outstanding between them at the conclusion of those discussions back to the Labour Court for a definitive recommendation.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
15th May 2014______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.