Labour Court Database __________________________________________________________________________________ File Number: CD90718 Case Number: LCR13231 Section / Act: S67 Parties: FOREIGN EXCHANGE COMPANY OF IRELAND LIMITED (F.E.X.C.O.) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claims by the Union on behalf of 17 workers for a revised salary structure and conditions of employment.
Recommendation:
7. Having considered the submissions the Court recommends that
the parties immediately commence negotiations on a review of the
rates of pay and condition of employment which should pertain in
the Company.
Division: Ms Owens Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD90718 RECOMMENDATION NO. LCR13231
THE LABOUR COURT
INDUSTRIAL RELATIONS ACT 1946 TO 1990
SECTION 67, INDUSTRIAL RELATIONS ACT, 1946
PARTIES: FOREIGN EXCHANGE COMPANY OF IRELAND LIMITED (F.E.X.C.O.)
(Represented by the Federation of Irish Employer)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claims by the Union on behalf of 17 workers for a revised
salary structure and conditions of employment.
BACKGROUND:
2. The Company was originally set up in 1982 as a Bureau de
Change and in 1985 F.E.X.C.O. came into being. It provided a VAT
refund service and employed 6 people at its base in Killorgin, Co.
Kerry. Since that time the Company has expanded and diversified
its business to include data processing for financial
institutions. In 1989 it won the contract to computerise the prize
bond system. As a result the Company now employs a total of 133
people at its three locations in Killorgin, Dingle and
Caherciveen, Co. Kerry. Most of the Company's employees are on
short-term contracts ranging from 3 to 20 months.
3. A plant agreement was negotiated in 1986 but there was little
Union activity until 1990. The present pay rates which apply are
those under the Joint Labour Committee (J.L.C.) for solicitors
clerks, grade 1 #5,200 x #150, grade II #6,200, grade III #7,500
with some increments. At a local meeting held on 13th July, 1990
the Union lodged a claim for the introduction of a new salary
structure and also a panel type system for permanent posts and the
elimination of favouritism. The Company responded that it had
given its employees a prior commitment to review their pay rates
from the 1st November, 1990. The Company also rejected the
allegations of favouritism stating that staff are recruited
through normal procedures taking into account experience as former
employees etc.
4. The Company granted an increase of between 6% and 8.50% to its
employees with effect from 1st November. The Union expressed its
disappointment at the level of increase stating that it had been
unilaterally applied and reiterated its claim for a revised salary
structure. The Company rejected the claim and the matter was
referred to the conciliation service of the Labour Court. A
conciliation conference was held on 23rd November, 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 on 1st March, 1991 a date suitable to the
parties.
UNION'S ARGUMENTS:
5. 1. Initially the Union agreed to the introduction of a
salary structure based on the salary scales of J.L.C.
solicitors clerks in order to assist the Company to get
off-the-ground. Every effort made by the Union to try and
talk realistically about wages has been frustrated by the
Company. Despite numerous meetings at local level to
negotiate wages the Company unilaterally applied a 6%
increase to all staff. This increase falls far short of the
worker's aspirations. The present rates applying are out of
line with those prevailing locally. The Company ignored all
the normal practices of good industrial relations by not
negotiating with the Union.
2. There are quite a number of ex bank officials employed
by the Company. The Union believes they are in receipt of
the junior bank officials rate. This two tier system should
be abolished and proper rates introduced for all staff.
3. There is a total lack of confidence in the method of
selection for permanent positions. There are quite a number
of workers in the Company on short term contracts. Those
whose contracts are due to expire on 31st March, 1991 have
been informed that their positions will be advertised in the
public press. There is also a feeling that ex bank officials
receive preferential treatment when it comes to recruitment.
The company should sit down and seriously negotiate in a
positive manner a formula for dealing with this situation.
COMPANY'S ARGUMENTS:
6. 1. The Company has been dealing with the pay and conditions
of employment of all its staff since its inception. The
Company granted increases of between 6% and 8.50% to its
employees in accordance with a commitment given in 1989, and
also following a review and appraisal of each individuals
work performance (details supplied to the Court). The
Company also took on board representations made by the Union.
The Company had also to take into account the fact that
employees costs represent more than 80% of operational costs
of the Company's total costs.
2. The appraisal mechanism carried out by the Company
facilitated direct communication with each employee
concerning the future of the business. Management were in a
position to answer directly questions from each employee
concerning the likely future both for the organisation and
for the workers. A number of questions were raised
concerning the future of the contract employment within the
Company. Management responding to these questions, indicated
that the market place was becoming increasingly competitive.
The Company had high aspirations in recent months regarding
its tenders for a number of contracts. However, despite
recent publicity, the Company has failed to win a number of
significant public contracts which came up for tender. The
basis for which contracts have been decided is price.
3. When the Company secured the prize bond contract it
recruited people on short-term contracts ranging from 3 to 20
months. During the selection procedures all applicants were
informed of the situation regarding the type of work and that
the positions were likely to expire on 31st March, 1991.
Whilst the Company could not guarantee any work after this
date it was endeavouring to secure further contracts which
may lead to permanent employment. The applicants were also
informed that the Company hoped to have 25 permanent
positions and all candidates would have an equal opportunity
of being selected.
RECOMMENDATION:
7. Having considered the submissions the Court recommends that
the parties immediately commence negotiations on a review of the
rates of pay and condition of employment which should pertain in
the Company.
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Signed on behalf of Labour Court
3rd April, 1991 Evelyn Owens
M.D. / M.O'C. _______________
Deputy Chairman