Labour Court Database __________________________________________________________________________________ File Number: CD882 Case Number: LCR11867 Section / Act: S67 Parties: NORTH WESTERN HEALTH BOARD - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Dispute concerning the operation of a sick pay scheme for non-officer staff employed by the North Western Health Board.
Recommendation:
10. The Court, having considered the submissions made by the
parties, is of the view that the change made by management is not
unreasonable and recommends that the Union accepts the position.
The Court also recommends that both parties meet to discuss ways
and means of alleviating any hardships caused by delays in social
welfare payments.
Division: Mr Fitzgerald Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD882 RECOMMENDATION NO. LCR11867
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: NORTH WESTERN HEALTH BOARD
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Dispute concerning the operation of a sick pay scheme for
non-officer staff employed by the North Western Health Board.
BACKGROUND:
2. The North Western Health Board operates a sick leave scheme
for non-officer grades. The scheme has been in operation since
1972 and provides for workers to receive paid sick leave for a
period up to twelve weeks in any twelve months.
3. Because of the repeated reduction in the Board's financial
allocation over the past number of years it became necessary to
scrutinise all areas of expenditure and it was in this context
that the paid sick leave scheme for non-officer grades was
examined.
4. As a result of the examination it came to light that some
workers were receiving more "money in hand" while absent on sick
leave than when they were working. This was due mainly to two
factors,
(a) Social welfare benefits are not liable for tax and
P.R.S.I. deductions and,
(b) The Board made up the difference between gross pay and
social welfare entitlement which resulted in a smaller
portion of pay being liable for deductions.
5. In early 1987 Management decided to change the application of
the scheme. Under the new arrangements the Board would make up
the difference between the workers nett pay and their social
welfare entitlement. This would, the Board considered, result in
workers receiving the same amount of money while on sick leave as
they received while working. The revised application came into
effect in June, 1987.
6. The Union objected to the revised changes on the basis that it
was a fundamental alteration of the workers' conditions of
employment and that some workers had in fact received less than
their nett pay while on sick leave and others had experienced
hardships due to delays in receiving their social welfare
benefits.
7. The matter was referred to the conciliation service of the
Labour Court on 30th October, 1987. A conciliation conference was
held on 15th December, 1987. As no agreement was possible both
parties agreed to a referral to the Labour Court for investigation
and recommendation. A Court hearing was held in Letterkenny on
27th April, 1988.
UNION'S ARGUMENTS:
8. 1. While the Board reduced payments, not alone did they level
off payments to nett take home pay but for some workers with a
low tax allowance their income fell below nett take home pay
while on sick pay. Despite assurances from the Board that
such anomalies would be rectified it takes some considerable
time to set the record straight (details supplied to the
Court).
2. The Board departed from established precedet. It should
now hold payments at the previous level so that meaningful
negotiations can commence with a view to eliminating any
abuse. The Union holds no brief for anyone abusing the
scheme, but it must be stressed that the Board has adequate
powers to deal with such abuse under the Disciplinary
Procedures.
3. The Board should have entered into negotiations with the
Union prior to making any changes to ascertain what level of
agreement could be reached on a modified scheme. The Union
asks the Court to recommend that the payments be restored to
their former level pending future consultations.
BOARD'S ARGUMENTS:
9. 1. The Board recognises that from a staff welfare point of
view it is desirable to operate a fair and reasonable sick
leave scheme. The scheme however, is operated at the
discretion of the Chief Executive Officer and management
contends that a change of this nature can be implemented by
the Board.
2. All areas of expenditure are being reviewed as a result of
the repeated reduction in financial allocation. It is now
essential to manage the Board's resources in the most
efficient and cost effective manner.
3. The scheme was not devised to operate in such a way as to
give an employee more money when on sick leave. It is a
misuse of funds and totally illogical to provide a scheme
which makes it financially attractive to be out sick.
RECOMMENDATION:
10. The Court, having considered the submissions made by the
parties, is of the view that the change made by management is not
unreasonable and recommends that the Union accepts the position.
The Court also recommends that both parties meet to discuss ways
and means of alleviating any hardships caused by delays in social
welfare payments.
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Signed on behalf of the Labour Court
Nicholas Fitzgerald
26th May, 1988 Deputy Chairman
M.D./J.C.