Labour Court Database __________________________________________________________________________________ File Number: CD86838 Case Number: LCR10860 Section / Act: S67 Parties: CREDIT FINANCE BANK - and - ITGWU |
Claims on behalf of 17 clerical and administrative workers under the 26th Wage Round for:- (1) a pay increase (2) regrading (3) compression of pay scales (4) payment of V.H.I. contribution and (5) improvement of house loan rates.
Recommendation:
5. The Court, having regard to the level of settlement in similar
employments and to the financial position of the Company,
recommends that a 5% increase be applied for a period of 12 months
and that the other claims be deferred until the next round.
Signed on behalf of the Labour Court
John M Horgan
17th December, 1986 ---------------
P.F./U.S. Chairman
Division: CHAIRMAN Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD 86838 THE LABOUR COURT LCR10860
CC 861337 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR10860
Parties: CREDIT FINANCE BANK
and
IRISH TRANSPORT AND GENERAL WORKERS UNION
Subject:
1. Claims on behalf of 17 clerical and administrative workers
under the 26th Wage Round for:-
(1) a pay increase
(2) regrading
(3) compression of pay scales
(4) payment of V.H.I. contribution and
(5) improvement of house loan rates.
Background:
2. In response to the Union's claim for the above concessions the
Company offered a 3% pay increase on the basis that the additional
items would be withdrawn. The Company stated that the ancillary
claims had already been discussed in the context of the previous
pay round, and it had made it clear then that it would not be
possible to make any concession on those items. No agreement
could be reached at local level, and on 6th August, 1986, the
matter was referred to the conciliation service of the Labour
Court. A conciliation conference took place on 12th September,
1986. No agreement was reached, and on 24th October, 1986, the
matter was referred to the Labour Court for investigation and
recommendation. A Court hearing took place on 20th November,
1986.
Union's arguments:
3. (i) Any claim by the bank that it is in a difficult
financial position is untenable. Credit Finance Bank
is in a financially healthy state, has had a very
buoyant history, and can anticipate the future with
equanimity. The Union is prepared to be reasonable in
the matter of the pay rise, and is seeking an increase
only of the order already granted by the Banks
competitors (details with Court).
(ii) The Union contends that where a worker reaches the top
of the scale, and has spent a period of time at that
point, there should be automatic movement from a lower
to a higher scale. Such a system is in operation in
one of the banks competitors (details with Court).
Since this claim was made, additional duties proper to
Grade 2 are being imposed on some workers at Grade 1
level, without any offer of movement to that higher
grade. This is an opportunity for the bank to regrade
the workers. However, the Bank should not expect the
workers, when they are given and undertake grade 2
duties to continue with Grade 1 work as well.
(iii) There are sixteen points on the grade 1 and 2 scales
and the Union contends that these should be compressed
to 12 points. The reason scales exist is to allow
companies to reward employees on the basis of
accumulating experience and it is generally agreed that
in the clerical area, a person matures to his or her
full potential both in experience and judgement by the
age of 29 years or so. Since the scales in Credit
Finance Bank are not age related but depend on
experience it would be unfair to ask the workers to
wait another 4 years to reach the maximum on the scale.
In the past, employees often had to wait until they had
climbed up 20 increments or more before they reached
the maximum and it often meant that their expenditure
peaked long beforehand. Nowadays most clerical scales
are between eight and ten years duration, and the Union
believes that Credit Finance Bank should respond to the
changing times and make the reduction from 16 to 12
points on Grades 1 and 2 and from 14 to 12 points on
Grade 3. The workers expect that in a few years time
the scales will be further reduced to 10 years
duration.
(iv) The Union is asking for payment of contributions for
V.H.I. Plan A plus 26 Fee Units, the cost of which is
#118.42 p.a. per person; if a group scheme is operated
(6 or more members), then the cost reduces to #107.14
p.a. per person. Membership of the VHI can be
beneficial both to the worker and to the company in
that members of the scheme do not have to worry about
the costs of illness, which are considerable, and thus
are able to seek medical attention, when needed,
without delay. There are a number of companies which
have VHI schemes incorporated into their agreements
(details with Court).
(v) Credit Finance Bank is largely owned by Allied Irish
Banks who operate a preferential interest rate scheme
for their own employees. Competitor banks and other
financial institutions have these rates as part of
their conditions of employment. What is being asked
for by the Union is common place elsewhere. Previously
Credit Finance Bank excused themselves from granting
these loans at preferential rates on the basis that
they had no large backers. That is no longer true
since March 1985.
Company's arguments:
4. (a) It is a fact that the Company has a reported loss of
#1.9m for the last financial year. While there may be
some extenuating circumstances surrounding this
position, it is nonetheless, a most worrying feature
for the Company.
(b) Credit Finance Bank has not chosen to deprive its
employees of a wage increase, and has attempted in a
realistic fashion to negotiate such a cost of living
adjustment. However, it was made very clear to the
Union, both at local level and at conciliation, that
there simply was no prospect of concessions being
granted at this time on items other than pay.
Furthermore, the Company would argue that a substantial
number of the Company's competitors have concluded
their 26th Wage Round Agreements, and these in the
main, provide for adjustments in pay levels alone
(details with Court).
(c) In view of the very favourable salary scales being
enjoyed by the employees concerned, which reflect the
substantial wage increases that have been granted in
recent years, the Company would argue that it is now
appropriate for a period of pay moderation to take
effect. The need for such moderation is sharpened by
the fact of the Company's financial position and
difficult trading circumstances.
RECOMMENDATION:
5. The Court, having regard to the level of settlement in similar
employments and to the financial position of the Company,
recommends that a 5% increase be applied for a period of 12 months
and that the other claims be deferred until the next round.
Signed on behalf of the Labour Court
John M Horgan
17th December, 1986 ---------------
P.F./U.S. Chairman