Labour Court Database __________________________________________________________________________________ File Number: CD90637 Case Number: LCR13250 Section / Act: S67 Parties: F.M.C. INTERNATIONAL - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim on behalf of 6 laboratory technicians for a revised salary scale and for the deduction of Union contributions at source.
Recommendation:
8. The Court has given detailed consideration to the submissions
from the parties and also a report prepared by the I.P.C. on
behalf of the Court. Taking all aspects of the claim into account
the Court recommends as follows:-
(a) The present minimum and maximum of the salary scale for
technicians is considered reasonable
(b) The present method of progressing up the scale is
unsatisfactory and gives rise to anomalies. Accordingly
it should be replaced by a ten point scale with
progression up the scale by way of equal annual
increments subject to satisfactory performance. The new
scale to be implemented from 1st January, 1991 and
Assimilation for staff presently employed to be on the
basis of the nearest incremental point above his/her
Salary on 1.1.91.
(c) The Company and Union agree to establish an appeals
procedure to allow grievances over grading and pay to be
processed.
Division: Ms Owens Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD90637 RECOMMENDATION NO. LCR13250
THE LABOUR COURT
INDUSTRIAL RELATIONS ACTS 1946 TO 1990
SECTION 67, INDUSTRIAL RELATIONS ACT 1946
PARTIES: F.M.C. International
(Represented by the Federation of Irish Employers
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim on behalf of 6 laboratory technicians for a revised
salary scale and for the deduction of Union contributions at
source.
BACKGROUND:
2. The Company, which was set up in 1978 at Little Island, Cork,
is an automated process plant. It produces micro crystalline
cellulose in a number of grades which is sold to food and
pharmaceutical customers as a binder, filler and inert low calorie
ingredient. The operation which runs on a continuous basis has
developed over the years to the current employment level of
approximately 80.
3. In October, 1989 the laboratory technicians met with
management and expressed dissatisfaction with their salaries and
maintained that they were out of line by approximately #3,000 when
compared to other similar employments. Following further meetings
at local level it was agreed that a survey be carried out by Hay
Consultants. The survey was carried out and the report presented
to the Company. The Company informed the technicians that on the
basis of the report, the present salary structure was appropriate.
The technicians rejected the findings as they contradicted a
previous survey which they had commissioned (details supplied to
the Court).
4. In June, 1990 the Union wrote to the Company stating that the
technicians had recently taken out membership and sought a meeting
with the Company to discuss wages etc. A meeting was held on the
29th June, 1990 at which the Union lodged a claim for a revised
salary scale and for the deduction of Union contributions at
source. (Initially the Company refused to deduct the Union
contributions at source. However, at the Court hearing the
Company undertook to accommodate the Union's request). The
Company rejected the claim.
5. Meetings at local level failed to resolve the issue and the
matter was referred to the conciliation service of the Labour
Court on 9th August, 1990. A conciliation conference was held on
16th October, 1990. As no agreement was reached the parties
consented to a referral to the Labour Court for investigation and
recommendation. A Court hearing was held in Cork on 5th December,
1990. Subsequent to the Court hearing the Court requested an
investigation be carried out by the I.P.C.
UNION'S ARGUMENTS:
6. 1. The laboratory technicians have made a unique
contribution towards ensuring the smooth running of the
Plant and while accepting every employee has a valuable
contribution, the nature of the Company's business depends
uniquely on the technicians expertise and diligence (details
supplied to the Court). Indeed the workers here concerned
have achieved distinction in their specialized field
attaining certificates and diplomas as well as invaluable
technical experience.
2. The Union has lodged a claim for a salary scale of
#15,906 to #19,058 (present scale range #10,504 to #15,756),
which is similar to the salary scale applying to technicians
in a comparable company in Cork (details supplied to the
Court). The comparison is justified not just for the type of
responsibility involved but both companies are
multinationals.
3. The salary currently payable is totally inadequate for
the technicians' qualifications and responsibilities. The
workers sought an independent assessment by Touche Ross. The
report shows that the workers are #3,000 per annum below the
average pay of comparable technicians with the starting point
#2,000 below and the maximum point #3,000 below comparable
scales. The Report (details supplied to the Court) bears out
the Union's contention that the appropriate salary range
should be within the #12,500 to #19,000 per annum for the
technician grade.
COMPANY'S ARGUMENTS:
7. 1. The Company's policy is to maintain competitive wages,
salaries and benefits. Significant emphasis has been placed
on developing and managing well balanced salary policies and
practices appropriate to this policy. In addition all
employees participate in a comprehensive benefit package.
Key elements of this policy are:
1. Each job is carefully evaluated in a systematic manner
using well established objective methodology.
2. Appropriate salary ranges are assigned to each job based
on competitive data from a number of local and national
surveys. These ranges are reviewed annually.
3. Individual employees are reviewed at least annually and
salaries are increased relative to individual
performance and other criteria.
2. No anomalies exist either in job grading or salaries for
technicians. The Union's claim is not valid and in addition
it has very significant cost increasing effects. The Company
bases this position on a number of criteria of which the HAY
Report is important as it is an independent study requested
and nominated by the technicians (details supplied to the
Court). This Report confirmed the appropriateness of grades
for all technician jobs and the salary ranges. In addition
these ranges compare favourably with similar employments both
locally and nationally. (Details supplied to the Court).
RECOMMENDATION:
8. The Court has given detailed consideration to the submissions
from the parties and also a report prepared by the I.P.C. on
behalf of the Court. Taking all aspects of the claim into account
the Court recommends as follows:-
(a) The present minimum and maximum of the salary scale for
technicians is considered reasonable
(b) The present method of progressing up the scale is
unsatisfactory and gives rise to anomalies. Accordingly
it should be replaced by a ten point scale with
progression up the scale by way of equal annual
increments subject to satisfactory performance. The new
scale to be implemented from 1st January, 1991 and
Assimilation for staff presently employed to be on the
basis of the nearest incremental point above his/her
Salary on 1.1.91.
(c) The Company and Union agree to establish an appeals
procedure to allow grievances over grading and pay to be
processed.
~
Signed on behalf of the Labour Court
9th April, 1991 Evelyn Owens
M.D. / M.O'C. _______________
Deputy Chairman