Labour Court Database __________________________________________________________________________________ File Number: CD87834 Case Number: LCR11610 Section / Act: S67 Parties: PENNEYS LIMITED - and - IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION |
Claim on behalf of part-time staff employed in provincial stores for the application of an annual bonus.
Recommendation:
5. The Court recommends that the annual bonus on a pro rata basis
be introduced for part-time staff by negotiation at the level of
each store in the Company.
Division: CHAIRMAN Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD87834 RECOMMENDATION NO. LCR11610
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: PENNEYS LIMITED
and
IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION
SUBJECT:
1. Claim on behalf of part-time staff employed in provincial
stores for the application of an annual bonus.
BACKGROUND:
2. An annual bonus of two weeks' wages paid in December currently
applies to all full time staff employed in the Company's stores
throughout the country. In January, 1987 the Union sought
application of this bonus to part time staff employed in Drogheda,
Dundalk, Letterkenny, Mullingar, Naas, Navan and Portlaoise. The
Company rejected the claim and it was referred by the Union, on
27th March, 1987, to the conciliation service of the Labour Court.
On 7th October the Company agreed to go to conciliation and
conciliation conference was held on 3rd November, 1987. The
matter was not resolved and was referred to a full hearing of the
Court. The hearing took place on 4th December, 1987.
UNION'S ARGUMENTS:
3. 1. Many of the part-time staff have been in the Company's
employment for some years. They have had the same duties and
responsibilities as full-time staff and have worked full-time
hours during periods of sick leave, maternity leave and
holidays.
2. This bonus was negotiated separately with the Company
and did not form part of local or town negotiations.
3. The number of full-time staff has decreased by 10 since
1984 in the seven stores and there has been an increase of 15
in part-time staff.
4. Other firms have extended Christmas bonuses to part-time
staff.
5. The Labour Court has consistently stated that part-time
staff should not be treated less favourably than full-time
staff. Employment regulation orders also contain such
clauses.
COMPANY'S ARGUMENTS:
4. 1. The bonus was negotiated in 1979 between the company and
the union in respect of the sales and clerical staff in the
Mary Street branch of the company. Although it was agreed
that the bonus would be paid in December of each year it was
not the intention of either side that the bonus should be
regarded as a Christmas bonus. Rather, it was an annual bonus
payable in return for the acceptance by staff of a number of
amendments in working methods and the formalisation of various
working practices that were then current. The union sought
this bonus as a means of getting their members to agree to
these conditions. Subsequently, the bonus was extended to all
full-time staff.
2. The terms and conditions of employment in the retail
footwear, drapery and allied trades throughout the country are
determined by local negotiations which take place in each
centre. Each set of negotiations takes place against the
local economic background and all terms and conditions of
employment for staff, both full-time and part-time, are dealt
with at local level. Arising from the union claim, the
company has advised, on several occasions, that if problems
apply in respect of bonuses for part-time workers in any given
area, the matter should be the subject of discussion between
the union and the local town or city employers. It is not
acceptable that this Company should be uniquely selected in
respect of such a claim. Existing practice would indicate
that the union accepts that claims for the pro rata
application of full-time terms to part-time staff should be
the subject of local negotiations.
3. The payment of a bonus on an annual basis is not a
widespread practice throughout the retail trade. In cases
where annual bonuses do apply, the vast majority of these
payments do not match the level of payment made in Penneys.
4. Over recent years the volume of sales throughout the
retail trade has been falling during a period when all fixed
and floating costs have increased very significantly.
Increases in pay have more than matched inflation and
maintained employees standard of living against a background
where sales growth has stagnated. It is unreasonable that the
Company should be asked to take on this additional financial
burden which would place it at a further competitive
disadvantage at this particularly difficult time for the
retail trade.
RECOMMENDATION:
5. The Court recommends that the annual bonus on a pro rata basis
be introduced for part-time staff by negotiation at the level of
each store in the Company.
~
Signed on behalf of the Labour Court
John M. Horgan
------------------
21st December, 1987.
A.K./U.S. Chairman