Labour Court Database __________________________________________________________________________________ File Number: CD88712 Case Number: LCR12133 Section / Act: S67 Parties: ATLAS COPCO (IRELAND) LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS UNION |
Claim for the introduction of salary scales and a cost of living increase.
Recommendation:
5. The Court recommends that the salary scale claimed by the
Union be applied to the two union members as the basis for the
application of the agreement on pay under the National Programme
for Recovery. They should be placed on the appropriate service
related point on the scale in respect of their service with the
Company and with effect from 1st November, 1988. Progression
through the scale by annual increments should be subject to
continued satisfactory performance, though accelerated progression
may apply in cases, as assessed by the Company as being of
exceptionally good performance.
Division: CHAIRMAN Mr Heffernan Mr Devine
Text of Document__________________________________________________________________
CD88712 RECOMMENDATION NO. LCR12133
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: ATLAS COPCO (IRELAND) LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claim for the introduction of salary scales and a cost of
living increase.
BACKGROUND:
2. The Company sells and services compressed air equipment and
employs seventeen workers most of which are in the sales and
administration departments. Early in 1988 five clerical workers
joined the Union (this figure is presently two). In April/May,
1988 the Union wrote to the Company requesting a meeting to
discuss a number of items, the Company was not agreeable to such a
meeting and on 24th June, 1988 the Union referred the matters to
the conciliation service of the Labour Court. A conciliation
conference took place on 23rd August, 1988 (the earliest date
suitable to the Company) to discuss a number of items including
the ones of concern here. The Union claimed the introduction of a
clerical salary scale starting at #115 per week at point one up to
a maximum of #215 per week at point 13 (inclusive of phase one of
the Programme for National Recovery (PNR)), the workers to be
assimilated onto this scale according to experience/age with
automatic progression up the scale until the maximum point is
reached. The Union also sought the application to this scale of
the remaining phases of the Programme for National Recovery and
all subsequent wage increases. The conciliation conference was
adjourned to allow the parties to consider the issues and resumed
on 15th September, 1988. Agreement could not be reached on the
introduction of salary scales and a cost of living increase and on
19th September, 1988 the matters were referred to the Labour Court
for investigation and recommendation. The Court investigated the
dispute on 1st November, 1988.
UNION'S ARGUMENTS:
3. 1. The salary scale claimed is based on and updated from
one previously recommended by the Court in relation to a
similar sized service and supply company in the engineering
sector with a similar sized workforce, range of clerical
skills, etc (LCR No. 11384 refers). It is also in line with
the average salary scales for such work in other employments
(details supplied to the Court). The workers' duties are
diverse and involve a high degree of responsibility.
Management is neither paying the market rate nor applying the
type of salary scales used for the majority of clerical
workers.
2. The terms of the PNR should be applied to the workers.
However, they have not had the opportunity of agreeing what
base salary the increases paid under the PNR should be applied
to. Currently, the workers are paid on the basis of an annual
review, which this year amounted to approximately 3%. The
Company can afford to pay a reasonable salary and a proper
salary structure should be agreed as the base for the
application of the agreed terms of the Programme for National
Recovery.
COMPANY'S ARGUMENTS:
4. 1. In the Company, salaries are reviewed on an individual
basis at least once a year. A performance review is carried
out and increases are discussed and notified to each worker.
Salary increases are based on individual performance, market
conditions, current rates of pay in the market and ability of
the Company to pay. The Company holds regular meetings with
all workers to discuss matters affecting the Company and its
employees. In addition, there is a Staff Liaison Committee in
operation which meets regularly with senior management.
2. There are two workers to which the application of a
salary scale is sought. In the period May 1985 to August,
1988 one of these received a total increase in salary of 45%
compared to an increase in the Consumer Price Index of 10.3%.
While the other worker in the same period received a salary
increase of 18.3%. In 1988 all workers received an increase
of 3% due to market conditions. It is not practical to
introduce a salary scale into the Company for a small number
of workers. The present system of salary and performance
review is of benefit to all workers in the long term and takes
into account differences in jobs, qualifications and
performance.
RECOMMENDATION:
5. The Court recommends that the salary scale claimed by the
Union be applied to the two union members as the basis for the
application of the agreement on pay under the National Programme
for Recovery. They should be placed on the appropriate service
related point on the scale in respect of their service with the
Company and with effect from 1st November, 1988. Progression
through the scale by annual increments should be subject to
continued satisfactory performance, though accelerated progression
may apply in cases, as assessed by the Company as being of
exceptionally good performance.
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Signed on behalf of the Labour Court
1st December, 1988 John M Horgan
U.M./U.S. --------------
Chairman