Labour Court Database __________________________________________________________________________________ File Number: CD92400 Case Number: LCR13735 Section / Act: S26(1) Parties: EOLAS - and - MANUFACTURING SCIENCE FINANCE |
Claim by the Union for the payment of a special pay increase to contract staff.
Recommendation:
5. The Court having considered the views of the parties in their
oral and written submissions finds,
(1) That special pay awards in normal circumstances when
implemented are absorbed into the basic pay scales.
(2) That in accordance with agreements between the Company
and the Union the pay of contract staff has a relativity
to the pay scales of full time staff.
(3) Given the above that contract staff should benefit from
the inclusion of special pay awards in the pay scales.
The Court recommends that the Company and the Union meet and
discuss implementation of the above findings.
Division:
Text of Document__________________________________________________________________
CD92400 RECOMMENDATION NO. LCR13735
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: EOLAS
and
MANUFACTURING SCIENCE FINANCE
SUBJECT:
1. Claim by the Union for the payment of a special pay increase
to contract staff.
BACKGROUND:
2. Eolas employs two categories of employees; permanent employees
and workers on fixed term contracts. The workers concerned are
employed on a contract basis. Under Clauses 3.3 and 3.4 of the
Programme for National Recovery, Eolas made pay awards ranging
from 8.50 to 10% to permanent employees. The awards were not made
to the contract staff. The Union submitted a claim for the
payment of the awards to the contract staff. Management rejected
the claim. The issue was referred to the Labour Relations
Commission on the 14th February, 1992. A conciliation conference
was held on the 10th April, 1992 but no agreement was reached.
The dispute was referred to the Labour Court by the Labour
Relations Commission on the 6th July, 1992. The Court
investigated the dispute on the 30th July, 1992.
UNION'S ARGUMENTS:
3. 1. The contract staff have always been treated equally with
permanent staff in relation to changes in rates of pay,
including special pay awards. The salary increases made under
Clauses 3.3 and 3.4 of the P.N.R. were merely a delayed
implementation of general salary increases not paid at the
appropriate time as a result of difficult economic
circumstances. The workers concerned are eligible to receive
any increases under Clause 3 which was clearly a general wage
round.
2. The Union has had a procedures agreement with Management
since 1976. The agreement stipulates that there would be no
worsening of the working conditions of staff. The Union has
accepted the recruitment of staff on fixed term contracts on
the basis of assurances that employment terms and conditions
would be maintained broadly in line with those of permanent
staff (with the exception of tenure of employment).
COMPANY'S ARGUMENTS:
4. 1. While contract staff are paid broadly within the ranges of
the permanent staff they are not on incremental scales as are
permanent staff but are on individual contracted salaries. It
is quite normal for such contracts to have a fixed payment for
the duration of the contract. Eolas has included a provision
in these contracts to ensure that at least cost of living
increases are paid through the application of general wage
rounds.
2. The increases relate to a period prior to 1989 on a
catching up basis. As the employees concerned were bought in
from the open market their salaries, in many cases, already
reflect the increases now being sought by the Union.
3. The claim is a cost increasing claim which could not be
sanctioned under the provisions of the Programme for
Economic and Social Progress. The annual cost of conceding
the claim would be #334,000 and no funding is available to
meet this cost.
RECOMMENDATION:
5. The Court having considered the views of the parties in their
oral and written submissions finds,
(1) That special pay awards in normal circumstances when
implemented are absorbed into the basic pay scales.
(2) That in accordance with agreements between the Company
and the Union the pay of contract staff has a relativity
to the pay scales of full time staff.
(3) Given the above that contract staff should benefit from
the inclusion of special pay awards in the pay scales.
The Court recommends that the Company and the Union meet and
discuss implementation of the above findings.
~
Signed on behalf of the Labour Court
Tom McGrath
__________________
13th August, 1992. Deputy Chairman
T.O'D./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.