Labour Court Database __________________________________________________________________________________ File Number: CD87187 Case Number: LCR11172 Section / Act: S67 Parties: LIMERICK CORPORATION - and - ITGWU |
Claim, by the Union on behalf of approximately 300 workers for a review of the sick pay scheme.
Recommendation:
5. The Court, having considered the submissions from both
parties, recommends that:
(a) The method of calculating sick pay on net basis,
recently introduced by the Corporation, be retained.
(b) For the purpose of reckoning eligibility for paid sick
leave, annual leave be excluded. This amendment to
come into operation in leave year 1987/1988.
(c) Both parties agree to participate in a joint working
party in 1988, to review the operation of the sick
leave scheme.
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD87187 THE LABOUR COURT LCR11172
CC87208 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11172
Parties: LIMERICK CORPORATION
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, by the Union on behalf of approximately 300 workers for
a review of the sick pay scheme.
Background:
2. The Corporation's sick pay scheme was originally introduced in
1964. Arising out of concern at the level of absenteeism, the
Corporation recently changed the method of calculating sick pay,
from gross pay less social welfare, to net pay less social
welfare. it also sought to introduce an interview procedure in
respect of workers returning from sick leave. The Union claimed
that the Corporation had not honoured a commitment allegedly given
in February, 1986, to set up a joint working party to review the
entire sick pay scheme and considers that no changes to the scheme
should have been made pending the completion of that review. The
Union felt the changes made by the Corporation were unacceptable.
The Union wants to see a number of improvements to the scheme.
These are as follows:-
(a) Annual leave not to count as paid sick leave;
(b) Absenteeism not to count as paid sick leave;
(c) Extension of amount of paid sick leave in cases of
personal injury at work;
(d) Double pay in respect of sick leave on Bank Holidays.
The Corporation stated that it had promised to carry out a review
of the sick pay scheme, not a joint review. With regard to the
extension of the scheme sought by the Union, the Corporation said
that these would be considered if and when there was a substantial
decrease in the level of absenteeism. In relation to the change
in the method of calculating sick pay, the Corporation referred to
Labour Court Recommendation No. 10795, in which the Court
recommended that workers in Clare County Council accept the exact
same change in their sick pay scheme. As no agreement could be
reached at a local level the matter was referred, on 6th February,
1987, to the conciliation service of the Labour Court. No
settlement was reached at a conciliation conference held on 12th
February, 1987, and the matter was referred to the Labour Court,
on 9th March, 1987, for investigation and recommendation. A Court
hearing took place, in Limerick, on 22nd April, 1987.
Union's arguments:
3. (a) The workers concerned are deployed at various duties,
predominantly outdoors, leaving them open to illness.
The scheme which came into operation in 1964 is
outdated and has not been improved since then.
(b) When a worker becomes ill, the Corporation examines the
worker's attendance record for the previous year to see
if an entitlement exists. The first deduction from the
65 days paid benefit is annual leave. The annual leave
in 1964, was 10 days (i.e. 55 days paid sick leave) but
annual leave is now 20 days (i.e. 45 days paid sick
leave). Therefore in name the workers have 65 days
paid sick leave, but in effect only 45 days.
(c) The scheme also allows for the deduction of days missed
through strike action, compassionate leave, certified
leave etc. A full years benefit would also be lost if
a worker accumulated an absence of 260 days in a 4 year
period. Annual leave would account for 80 of these
days and the compassionate, certified and sick leave
would already have been taken in previous years.
Therefore the workers would be penalised twice and this
cannot be fair.
(d) The scheme always paid the difference between social
welfare and gross pay. As a result of the
Corporation's change the payment to the sick worker is
reduced, causing severe hardship in many cases, where
medication has to be purchased.
(e) The Union believes the present scheme needs to be
replaced. Public holidays are lost if a worker is on
sick leave. Annual leave, a statutory entitlement is
also used against a worker. Net pay instead of gross
pay is used for calculation and the days a worker
misses and for which he is not paid are calculated
against him again on the 4 year revision. The Union
believes that annual leave and approved leave of all
natures should not be used against a worker who seeks
to use a sick pay scheme benefit when it is needed.
Corporation's arguments:
4. (i) The necessity for an amendment to the scheme arose from
a review of absenteeism for hourly paid employees,
which indicated that absenteeism was very high. An
analysis of the scheme itself revealed that in most
cases employees were considerably better off
financially when out sick, than when at work, through
being in receipt of a combined income made up of sick
pay benefit, pay related benefit and income tax refund.
This is illogical, a misuse of funds and it was never
the Corporation's intention to provide a scheme which
would make it attractive to be out sick. Therefore,
the Corporation felt obliged to correct this situation.
(ii) The levels of absenteeism in 1986 and previous years
have had serious effects on the provision of essential
service and on the execution of work programmes
(details provided to the Court). The resulting loss of
productivity is most damaging to the Corporation's
already depleted finances.
(iii) It is true, up to a point, to say that the duration of
benefits under the scheme have been reduced over time,
because annual leave is taken into account. However,
the reduced duration of benefit has been offset to a
fair extent by the introduction in 1984 of a scheme
which provides for 5 self certified days sick leave,
which can be availed of by employees to ensure payment
of sick pay from the first day of absence. Social
welfare payments are not available until the 4th day of
absence. The self certified days also relieve
employees of the necessity of obtaining medical
certificates for absence of 1 or 2 days duration.
(iv) The Corporation would be prepared to have a further
review of the scheme in 1988, if absence rates have
been reduced as far as is reasonably possible and
subject to employees not being better off when out sick
than when at work. Having regard to the scarcity of
financial resources, the need to guard against the
possible abuse of public funds and the fact that the
improvements made to the scheme in 1984, did nothing to
improve attendance, it is imperative that the
Corporation act cautiously.
RECOMMENDATION:
5. The Court, having considered the submissions from both
parties, recommends that:
(a) The method of calculating sick pay on net basis,
recently introduced by the Corporation, be retained.
(b) For the purpose of reckoning eligibility for paid sick
leave, annual leave be excluded. This amendment to
come into operation in leave year 1987/1988.
(c) Both parties agree to participate in a joint working
party in 1988, to review the operation of the sick
leave scheme.
~
Signed on behalf of the Labour Court
Evelyn Owens.
_____________________
Deputy Chairman.
13th May, 1987.
B.O'N./J.C.