INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
ENVA IRELAND LIMITED
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Hayes
Employer Member: Mr Murphy
Worker Member: Mr McCarthy
1. Pay claim and the restoration of overtime premium payments.
2. This dispute concerns the terms of a pay offer and the restoration of overtime premium payments. This 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 10th December 2014 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 25th February 2015.
3. 1. In May 2013 the Union submitted a claim for a significant pay increase and the restoration of the overtime premium rates to those that applied prior to the cuts in February 2010.
2. In May 2014 the Company proposed a pay increase of 1.5% from the 1st April 2014 and a further 0.5% to be paid to individuals who meet set performance criteria which would be assessed in October 2014 and backdated to 1st April 2014. The Company refused to restore the overtime premium payments.
3. The Union advised the Company that it was not prepared to accept individualising any aspect of the general pay increase as this could lead to future disparities in pay levels. The cuts to the overtime pay rates in 2010 had a significant impact on its members, who due to the nature of their work, regularly work additional hours.
4. 1. The industry in which the Company conducts its business is extremely competitive and one with very tight margins. The Company is a small indigenous organisation competing against much larger players in the market and is currently facing significant challenges in the marketplace in terms of revenues and declining profits.
2. The Company has proposed a pay increase of 2% with 0.5% of that increase subject to each employee committing to a number of basic requirements regarding health and safety, customer services and taking care of company property.
3. The potential suspension of 0.5% of the pay increase provides an important but financially modest behavioural change incentive to be used by management as an alternative to the more formal disciplinary approach which while necessary in certain circumstances is often less constructive in changing people’s behaviour and attitudes.
Having given careful consideration to the extensive written and oral submissions of both parties to this dispute the Court recommends concession of the Union’s claim for a 2% increase in pay for a period of twelve months with effect from 1 April 2014.
The Court further recommends that parties commence discussions in August 2015 with a view to agreeing a phased restoration of overtime rates to their previous levels.
Finally and independently the Court recommends that the Union, on behalf of its members, undertakes to meet the health and safety standards set out by the Company in its submission to the Court.
The Court so recommends.
Signed on behalf of the Labour Court
11th March, 2015.Deputy Chairman
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.