Labour Court Database __________________________________________________________________________________ File Number: CD87519 Case Number: LCR11363 Section / Act: S67 Parties: INTERNATIONAL FACTORS LTD - and - IBOA |
Claim for improved salary scale structure.
Recommendation:
5. The Court has considered the submissions made by the parties.
On the basis of the information submitted and having regard to the
fact that no formal relationship exists between the salary
structures of any of the concerns quoted the Court does not
consider any compelling reason exists for any further review of
the salary scales or structures at this time in International
Factors Ltd. The Court therefore does not recommend concession of
the Union's claim.
Division: Mr O'Connell Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD87519 THE LABOUR COURT LCR11363
CC87472 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11363
Parties: INTERNATIONAL FACTORS (IRELAND) LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH BANK OFFICIALS' ASSOCIATION (I.B.O.A.)
Subject:
1. Claim for improved salary scale structure.
Background:
2. The Company in this case is involved in the financial sector
market. The Union claims that the salary scale structures
existing in the Company are out of line with other companies in
the rest of the financial sector. The Company, for its part,
contended that they are paying the market rate for the job. Under
the 25th pay round part of the agreement reached at conciliation
was that Grades B and C would be increased by #300 per annum on
all points and that all salary scales would be re-examined in
September, 1986 without commitment and if any adjustments emerged
they would be made effective from 1st January, 1987. Following a
review of salary scales the Company maintained its contention that
there was no justification for changing the existing competitive
salary scale structure. The Union carried out its own review, and
claims that salary scales in the Company compare unfavourably with
most other companies in the financial sector. As agreement could
not be reached at local level, the matter was referred to the
conciliation service of the Labour Court on 20th March, 1987.
Agreement was not reached at a conciliation conferences held on
the 14th May, 1987, and on 29th June, 1987, the matter was
referred to the Court for investigation and recommendation. A
Court hearing took place in Dublin on 27th July, 1987.
Union's arguments:
3. (i) International Factors (Ireland) Ltd is a wholly owned
subsidiary of Bank of Ireland Finance, and is part of
the Bank of Ireland Group. The Group has shown
excellent profits in 1986 (details supplied to the
Court). The Union's members have consistently made a
considerable contribution to the Group's success over
the years and the Union believes that they are more
than justified in seeking a review of the salary scale
structure in order to bring it into line with other
financial companies.
(ii) The Union has provided copies of the existing salary
scales for International Factors (Ireland) Limited and
other financial companies in the finance industry
(details supplied to the Labour Court). Even the most
superficial perusal of these depicts the significant
differences in rates between International Factors
(Ireland) Ltd, and other financial institutions. Given
this fact, the Union argues that its present proposals
should be accepted by the Company.
(iii) The Company has engaged in a specific policy of
non-replacement of staff over the last 18 months. In
that period, 7 staff left the Company and were not
replaced. This resulted in significant savings to the
Company which staff believe should now be shared with
them in the form of a new salary scale structure.
(iv) The Company has engaged in a restructuring of the
operations department in recent months, which has
resulted in a change in the reporting functions. In
addition, extensive changes have been made to job
descriptions as a result of updated technology. Staff
members have co-operated fully with these changes to
date, which have undoubtedly resulted in increased
productivity. The staff now believe that their
reasonable claim should be conceded in full.
Company's arguments:
4. (a) Based on the survey carried out by the Company, the
present salary scale structure in the Company compares
favourably with the broad financial sector market.
In 1983, the Company decided to introduce a formal
salary and grading structure. This was done by
reference to the organisation's size, area of activity,
and with due cognisance of the general financial
sector.
The Company has not moved out of the relative rank
order of the financial sector and there is no basis at
this time for any salary re-structuring.
(b) Average salaries of staff (25th pay round) in the
Company's salary structure are provided (details with
the Labour Court).
CONCESSION OF THE IBOA CLAIM WOULD HAVE THE EFFECT OF
INCREASING THE CURRENT SALARY SCALE STRUCTURE AS
FOLLOWS:-
GRADE A B C D E
Min. Point + 12.1% + 9.1% +19.2% +11.4% +18.4%
Max. Point N/A +16.9% +17.0% +10.2% + 7.5%
N.B. These percentages exclude any recommendation of the
Court on the outstanding 26th pay round claim, and do
not take into account cost of assimilation
(c) Fringe benefits in the Company are very favourable.
(d) The question of improvement in the salary structure was
first raised by the IBOA under the 25th pay round.
At that time, the Company were quite convinced that
there was no justification to warrant any changes.
However, in the final resolution of this issue, the
Company did concede to two substantial changes in the
salary structure.
This resulted in all points of Grades B and C being
increased by #300 before applying the 7% pay increase.
It was, and still is, the Company's contention that, in
view of this "change," and the new structure that
emerged, no grounds now exist for further improvements.
(g) The Company is operating in a competitive business
environment. Any further pressure on labour costs
would erode the Company's ability to compete in this
difficult environment.
RECOMMENDATION:
5. The Court has considered the submissions made by the parties.
On the basis of the information submitted and having regard to the
fact that no formal relationship exists between the salary
structures of any of the concerns quoted the Court does not
consider any compelling reason exists for any further review of
the salary scales or structures at this time in International
Factors Ltd. The Court therefore does not recommend concession of
the Union's claim.
~
Signed on behalf of the Labour Court
John O'Connell
______________________
Deputy Chairman
13th August, 1987
P.F./J.C.
CD87519 THE LABOUR COURT LCR11363
CC87472 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11363
Parties: INTERNATIONAL FACTORS (IRELAND) LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH BANK OFFICIALS' ASSOCIATION (I.B.O.A.)
Subject:
1. Claim for improved salary scale structure.
Background:
2. The Company in this case is involved in the financial sector
market. The Union claims that the salary scale structures
existing in the Company are out of line with other companies in
the rest of the financial sector. The Company, for its part,
contended that they are paying the market rate for the job. Under
the 25th pay round part of the agreement reached at conciliation
was that Grades B and C would be increased by #300 per annum on
all points and that all salary scales would be re-examined in
September, 1986 without commitment and if any adjustments emerged
they would be made effective from 1st January, 1987. Following a
review of salary scales the Company maintained its contention that
there was no justification for changing the existing competitive
salary scale structure. The Union carried out its own review, and
claims that salary scales in the Company compare unfavourably with
most other companies in the financial sector. As agreement could
not be reached at local level, the matter was referred to the
conciliation service of the Labour Court on 20th March, 1987.
Agreement was not reached at a conciliation conferences held on
the 14th May, 1987, and on 29th June, 1987, the matter was
referred to the Court for investigation and recommendation. A
Court hearing took place in Dublin on 27th July, 1987.
Union's arguments:
3. (i) International Factors (Ireland) Ltd is a wholly owned
subsidiary of Bank of Ireland Finance, and is part of
the Bank of Ireland Group. The Group has shown
excellent profits in 1986 (details supplied to the
Court). The Union's members have consistently made a
considerable contribution to the Group's success over
the years and the Union believes that they are more
than justified in seeking a review of the salary scale
structure in order to bring it into line with other
financial companies.
(ii) The Union has provided copies of the existing salary
scales for International Factors (Ireland) Limited and
other financial companies in the finance industry
(details supplied to the Labour Court). Even the most
superficial perusal of these depicts the significant
differences in rates between International Factors
(Ireland) Ltd, and other financial institutions. Given
this fact, the Union argues that its present proposals
should be accepted by the Company.
(iii) The Company has engaged in a specific policy of
non-replacement of staff over the last 18 months. In
that period, 7 staff left the Company and were not
replaced. This resulted in significant savings to the
Company which staff believe should now be shared with
them in the form of a new salary scale structure.
(iv) The Company has engaged in a restructuring of the
operations department in recent months, which has
resulted in a change in the reporting functions. In
addition, extensive changes have been made to job
descriptions as a result of updated technology. Staff
members have co-operated fully with these changes to
date, which have undoubtedly resulted in increased
productivity. The staff now believe that their
reasonable claim should be conceded in full.
Company's arguments:
4. (a) Based on the survey carried out by the Company, the
present salary scale structure in the Company compares
favourably with the broad financial sector market.
In 1983, the Company decided to introduce a formal
salary and grading structure. This was done by
reference to the organisation's size, area of activity,
and with due cognisance of the general financial
sector.
The Company has not moved out of the relative rank
order of the financial sector and there is no basis at
this time for any salary re-structuring.
(b) Average salaries of staff (25th pay round) in the
Company's salary structure are provided (details with
the Labour Court).
CONCESSION OF THE IBOA CLAIM WOULD HAVE THE EFFECT OF
INCREASING THE CURRENT SALARY SCALE STRUCTURE AS
FOLLOWS:-
GRADE A B C D E
Min. Point + 12.1% + 9.1% +19.2% +11.4% +18.4%
Max. Point N/A +16.9% +17.0% +10.2% + 7.5%
N.B. These percentages exclude any recommendation of the
Court on the outstanding 26th pay round claim, and do
not take into account cost of assimilation
(c) Fringe benefits in the Company are very favourable.
(d) The question of improvement in the salary structure was
first raised by the IBOA under the 25th pay round.
At that time, the Company were quite convinced that
there was no justification to warrant any changes.
However, in the final resolution of this issue, the
Company did concede to two substantial changes in the
salary structure.
This resulted in all points of Grades B and C being
increased by #300 before applying the 7% pay increase.
It was, and still is, the Company's contention that, in
view of this "change," and the new structure that
emerged, no grounds now exist for further improvements.
(g) The Company is operating in a competitive business
environment. Any further pressure on labour costs
would erode the Company's ability to compete in this
difficult environment.
RECOMMENDATION:
5. The Court has considered the submissions made by the parties.
On the basis of the information submitted and having regard to the
fact that no formal relationship exists between the salary
structures of any of the concerns quoted the Court does not
consider any compelling reason exists for any further review of
the salary scales or structures at this time in International
Factors Ltd. The Court therefore does not recommend concession of
the Union's claim.
~
Signed on behalf of the Labour Court
John O'Connell
______________________
Deputy Chairman
13th August, 1987
P.F./J.C.