Labour Court Database __________________________________________________________________________________ File Number: CD89841 Case Number: LCR12854 Section / Act: S67 Parties: JURY'S HOTEL - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the minimum payment to juniors under the Programme for National Recovery.
Recommendation:
5. The Court having considered the submissions of the parties
recommends in respect of the agreement which came into effect on
1st May, 1989 that the payment of the #4.50 increase be applied to
all grades including juniors.
The Court recognises that the normal pattern of the application of
increases in the Company and in the Industry includes the
application of pro rata increases to those on the junior grades.
Accordingly the above recommendation is made on the clear
understanding that it is specific to the agreement reached in
April, 1989 and does not create a precedent for the application of
wage increases to juniors in the future.
Division: MrMcGrath Mr Collins Mr Walsh
Text of Document__________________________________________________________________
CD89841 RECOMMENDATION NO. LCR12854
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: JURY'S HOTEL
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the minimum payment to juniors under the
Programme for National Recovery.
BACKGROUND:
2. The last wage agreement commenced on 1st May, 1987 and
terminated on 30th April, 1989. Negotiations took place on the
application of the first phase of the Programme for National
Recovery with effect from 1st May, 1989 and an increase of #4.50
per week was agreed. Management applied the #4.50 per week
increase to qualified grades with pro rata increases to juniors.
This was unacceptable to the Union which argued that all workers
should receive an increase of #4.50 per week. This was rejected
by management on the basis that pro rata increases are always
applied to trainee categories. No agreement could be reached and
on 13th June, 1989 the matter was referred to the conciliation
service of the Labour Court. A conciliation conference was held
on 30th August, 1989 at which no progress was made and on 15th
November, 1989 the matter was referred to the Labour Court for
investigation and recommendation. The Court investigated the
dispute on 21st February, 1990.
UNION'S ARGUMENTS:
3. 1. During discussions on the pay increases management
reiterated its concern and commitment about bringing up the
lower paid and moving towards its ultimate objective, the
elimination of major differentials between grades. The Union
accepted a fixed figure increase (#4.50) for all workers
rather than a percentage increase even though a lot of the
higher paid workers would lose out substantially, as the Union
was committed to bringing up the rates of the lower paid
workers. The higher paid workers would have received larger
increases with a percentage basis under the Programme for
National Recovery (P.N.R.) than with the flat rate increase
and management's interpretation would mean that they had
foregone larger increases for no reason.
2. Previous agreements provided for pro rata increases
(details supplied to the Court). However in this case,
management did not confirm the proposals in writing because in
the Union's opinion there was no need to, as the original
intention and agreement was a once off payment of #4.50 per
week to all workers. In 1988, in an unprecedented move in the
industry, the Union agreed to the introduction of scales
varying from two to four years for such workers as porters,
cleaners, kitchen staff, etc (details supplied to the Court).
Previously there had been one rate for such jobs, which
therefore attracted the full entitlements from wage
bargaining. However, these are now some of the categories
that have been paid pro rata. The Hotel is at the top of the
league in Cork and the workers deserve to be paid in line with
this. In any event, the Union's interpretation of the
agreement is correct and the Hotel owes the Union a 'moral'
concession.
HOTEL'S ARGUMENTS:
4. 1. A new pay structure for the Hotel was agreed with the
Union in 1985, which provided for junior rates to be expressed
as fixed percentages of the qualified grade (details supplied
to the Court). The Union is now among other things, seeking
to change that agreed structure by seeking increases for
juniors which are contrary to the terms of clause two of the
P.N.R. In agreements concluded between the Union and other
hotels in Cork City, pro rata increases have been applied to
those on the junior grades. In addition, the Joint Labour
Committee for the Hotel Industry has applied the same
principle by agreement and this principle has been approved by
the Court. The agreed percentage basis for calculating rates
of pay should remain in force by the application of pro rata
increases to the #4.50 agreed in respect of qualified grades.
RECOMMENDATION:
5. The Court having considered the submissions of the parties
recommends in respect of the agreement which came into effect on
1st May, 1989 that the payment of the #4.50 increase be applied to
all grades including juniors.
The Court recognises that the normal pattern of the application of
increases in the Company and in the Industry includes the
application of pro rata increases to those on the junior grades.
Accordingly the above recommendation is made on the clear
understanding that it is specific to the agreement reached in
April, 1989 and does not create a precedent for the application of
wage increases to juniors in the future.
~
Signed on behalf of the Labour Court
Tom McGrath
________________________
23rd March, 1990. Deputy Chairman
U.M./J.C.