Labour Court Database __________________________________________________________________________________ File Number: CD91511 Case Number: LCR13491 Section / Act: S26(1) Parties: ALLIED DISTRIBUTIVE MERCHANTS - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the payment of an annual Christmas Bonus.
Recommendation:
The Court, having considered the submissions of the parties and
the evidence submitted, recommends that the clerical staff
should continue to be paid the Christmas bonus for the same
duration as it is paid to the warehouse staff in the absence of
a productivity deal with the warehouse staff.
Division: Ms Owens Mr Brennan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD91511 RECOMMENDATION NO. LCR13491
INDUSTRIAL RELATIONS ACTS 1946 TO 1990
SECTION 26(1) INDUSTRIAL RELATIONS ACT, 1990
PARTIES: ALLIED DISTRIBUTIVE MERCHANTS
(Represented by Federation of Irish Employers)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the payment of an annual Christmas Bonus.
BACKGROUND:
2. In 1989 the Company and Union negotiated an agreement whereby
manual workers in the Company's warehouse would receive £200 in
vouchers or cash (which is taxable) as a bonus each Christmas,
until such time as a productivity plan would be agreed and
implemented by the parties. In October, 1989 the Union
submitted a claim to the Company on behalf of its clerical
members for the payment of a Christmas Bonus similar to that
payable to warehouse Staff. The Union contended that its
members were entitled to the bonus as compensation for the poor
conditions in which they were required to work.
At a meeting on 22nd November, 1989, the Company made an offer
of a once-off payment of £200 in vouchers or cash (which would
be taxable) as a gesture of goodwill in recognition of the
workers' co-operation with the installation and operation of a
new computer system. The Union rejected the offer and
re-iterated it's claim for payment of a bonus on a continuous
basis. At a meeting on 4th December, 1989 it was agreed that
£200 be paid to clerical staff at Christmas. This was confirmed
in a letter to the Union dated 7th December 1989:-
"The clerical staff will receive £200 in vouchers or cash
(which is taxable) at Christmas. Staff with less than 1
year's service at Christmas will receive this benefit on a
pro rata basis".
In November 1990 it came to the Union's attention that no bonus
would be paid to clerical staff for Christmas 1990, and when
approached the Company stated that the payment in 1989 was made
and agreed on a once-off basis. The Union rejected the
Company's contention.
The dispute was referred to the conciliation service of the
Labour Relations Commission on 19th December 1990. A
conciliation conference was held on 11th February, 1991 at which
agreement was not reached. The issue was referred to the Labour
Court on 20th September 1991 under Section 26(1) of the
Industrial Relations Act, 1990. The Court investigated the
dispute on 29th October, 1991.
UNIONS ARGUMENTS
3. 1. Having rejected the Company's original offer of a
once-off payment, the Union is satisfied that, in
accepting the subsequent offer of 4th December, 1989, it
was accepting the payment of a Christmas bonus on a
continuous basis similar to that agreed on behalf of
warehouse staff.
3. 2. In its letter of 7th December confirming the agreement
reached on the 4th December, 1989 the Company stated that
a payment of £200 will be made "at Christmas". There was
no indication, either in the letter or otherwise, that
the payment was purely on a once-off basis.
3. 3. The claim for payment of the 1990 Christmas bonus was
lodged with the Company in November, 1990 but was not
paid. Therefore in addition to payment of a Christmas
bonus for 1991 the Union is also seeking retrospective
payment of the 1990 bonus.
COMPANY'S ARGUMENTS:
4. 1. The payment of £200 in 1989 was made as a gesture of
goodwill, solely on a once-off basis. This fact was made
clear to the Union during all negotiations.
4. 2. It is not logical that a comparison be made between
payments to clerical staff and those made to warehouse
staff as separate negotiating structures exist for both.
The Company has a productivity agreement with warehouse
staff and no such agreement exists with the clerical
staff. The clerical staff received an increase in wages
which did not apply to warehouse staff. The claim
that a bonus be paid every Christmas until the
implementation of a productivity plan does not arise in
the case of clerical staff.
RECOMMENDATION
The Court, having considered the submissions of the parties and
the evidence submitted, recommends that the clerical staff
should continue to be paid the Christmas bonus for the same
duration as it is paid to the warehouse staff in the absence of
a productivity deal with the warehouse staff.
~
Signed on behalf of the Labour Court
Evelyn Owens
4th December,1991
A.N.S./N.M. ------------------
Deputy Chairman