INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Ms Jenkinson
Employer Member: Mr Marie
Worker Member: Ms O'Donnell
1. Pay Claim
2. This case concerns a dispute between the employer and the Unions in relation to a pay claim. The Unions are seeking pay increases in respect of two categories of staff; those employed Pre 2009 and those employed Post 2009. The Union is also seeking the consolidation of flexi payments and/or service pay where applicable into the basic rate of pay. Management's position is that a three year deal is acceptable but the parties are in dispute in relation to the percentage increases to be applied.
The dispute 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 22nd October 2015 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 2nd December 2015.
3 1 As part of the three year pay deal the Unions are seeking increases which are considered fair and reasonable given Management's increased profitability in recent times. The Unions do not accept that the increases sought would in any way affect the future viability of the Company.
4 1 The Company continues to operate in circumstances where profit margins are low and cannot sustain the costs of the Unions claims. Management considers its position to increase pre 2009 employees' rates of pay by 4.5% and to incrementally increase post 2009 pay rates to €9.84 per hour as its best offer in the current circumstances.
The matter before the Court concerns the Unions’ claim for increases in pay for two categories of Warehouse Operative staff, as follows:-
- i.Incorporation of flexi-pay and/or service pay. Flexi-pay varies depending on the location of the plant between €1.00per hour and €1.50 per hour and service pay applies at the Dublin plant only.
- ii.Pay increase: 2½% from 1stOctober 2015, 2% from 1stOctober 2016; and 2% from 1stOctober 2017, to expire on 30thSeptember 2018.
The Union sought the following pay increases: €9.50 per hour from 1stOctober 2015; €9.95 per hour from 1stOctober 2016; and €10.50 per hour from 1stOctober 2017, to expire on 30thSeptember 2018.
The Company offered to pay pre-2009 employees 4.5% increase in pay in three phases over three years and to increase post-2009 employee’s pay incrementally to €9.84 by 1stOctober 2017.
The Court notes that it was agreed between the parties that pay increases would take effect over a three year period starting from 1stOctober 2015, however, there was no agreement on the level of increases to be made.
Having considered the oral and written submissions of both parties the Court recommends as follows:-
- oThe Court is satisfied that flexi-payments and service related payments are unique to those employees who hold such payments and are no longer applicable beyond that employee cohort. In the circumstances the Court does not recommend the incorporation of these payments into basic pay.
- oThe Court recommends the following pay increases in basic pay for pre-2009 employees:- 2% from 1stOctober 2015; 2% from 1stOctober 2016; and 2% from 1stOctober 2017, to expire on 30thSeptember 2018.
- oThe Court recommends in favour of the Union’s claim in respect of post-2009 employees, therefore the Court recommends the following increases in basic pay:- €9.50 per hour from 1stOctober 2015; €9.95 per hour from 1stOctober 2016; and €10.50 per hour from 1stOctober 2017, to expire on 30thSeptember 2018.
The Court so Recommends.
Signed on behalf of the Labour Court
22nd December 2015______________________
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.