LCR23121

PARTIES:

DIVISION:

SUBJECT:

A pay increase.

BACKGROUND:

This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 25 November 2024 in accordance with Section 26(1) of the Industrial Relations Act, 1990.

A Labour Court hearing took place on 11 February 2025.

Union's Arguments

The Union proposed the following:

• That an increase of €0.50 per hour from the 1 January 2025 be applied to workers currently earning the National Minimum Wage;
• That this differential is maintained over the Minimum Wage going forward to over the next 24 months;
• That those workers who currently have a rate differential above the National Minimum Wage have that differential maintained over the same period;
• That once off tax efficient voucher of €1,000 is paid in recognition of 2024 retrospection;
• That both parties agree to engage in meaningful dialogue in respect of the Employer’s proposed shift working arrangements.

Employer's Arguments

The Employer proposed two options with regards a pay increase:

• Option 1: A €1,000 tax-free voucher for Union members, which is pro-rated for those hired after January 2024;
• Option 2: A 3% pay increase for union members for 2024. However, it was argued by the Employer that the net payment would not be as beneficial to the Worker in this instance, and that a 3% increase for 2024 would be subsequently offset by the minimum wage increase of January 2025.

The Employer also argued for the following:

• Union engagement to explore phased wage adjustments for 2025, 2026 and 2027;
• That both parties engage in constructive dialogue on the implementation of a four-cycle shift system, aimed at optimising efficiency while maintaining fair compensation;
• A collaborative approach to non-monetary employee benefits to improve working conditions.

DECISION:

Background to the Dispute

The most recent pay agreement in place between SIPTU and Glenpatrick Spring Water Limited (‘the Company’) expired on 31 December 2023. The Parties have engaged locally and with the assistance of the Workplace Relations Commission throughout 2024 but have been unable to conclude a new pay agreement. This is due in part to the Employer’s preference to negotiate the introduction of a new four-cycle shift arrangement in conjunction with concluding a new pay agreement. The Union and its Members, on the other hand, wish to conclude a pay agreement before engaging in discussions about the introduction of the proposed new shift arrangements.

The Pay Claim

The Union informed the Court that the Company’s proposal to pay a once-off tax-free voucher of €1,000.00 per Worker in lieu of a percentage-based or fixed amount increase for 2024 would be acceptable. In respect of 2025 and 2026, the Union is seeking to maintain a differential between its members’ rate of pay and the prevailing national minimum wage hourly rate.

Extensive submissions were made on behalf the Company outlining the highly competitive nature of the market in which it operates and the low margins which apply in contract manufacturing generally. A very strong case was made in support of the Company’s proposal to introduce a four-cycle shift in order to enhance its competitiveness.

Recommendation

The Court recommends as follows:

• The Company pays the proposed €1,000.00 tax free voucher and this is accepted by the Workers in full and final settlement of the 2024 element of their pay claim;
• The Company concedes a 3.75% pay increase for 2025 (retrospective to 1 January 2025) in order to maintain the differential sought by the Union;
• The Parties engage in good faith, immediately following the acceptance of this Recommendation, regarding the Company’s proposal to move to a four-cycle shift arrangement.

The Court so recommends.

	Signed on behalf of the Labour Court
	Alan Haugh
ÁM	______________________
4th March 2025	Deputy Chairman

NOTE

Enquiries concerning this Recommendation should be addressed to Áine Maunsell, Court Secretary.