Labour Court Database __________________________________________________________________________________ File Number: CD92381 Case Number: LCR13749 Section / Act: S20(1) Parties: LOCTITE (IRELAND) LTD. - and - MANUFACTURING SCIENCE FINANCE |
A dispute concerning the payment of 3% under phase two of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
The Court in all the circumstances of this case recommend that
phase 2 of the Programme for Economic and Social Progress be
implemented from the due date.
The parties should immediately enter into negotiations in
accordance with Clause 3 of the PESP.
In this regard the Court draws the attention of both parties to
the provisions of Clause 3 which reads as follows:
"Exceptionally, employers and trade unions may negotiate
changes in rates of pay and/or conditions of employment which
may be for an amount up to but not exceeding 3% of the
weekly/monthly basic pay cost of the group of employees
concerned. Such changes may be implemented, on a phased
basis where appropriate, commencing not earlier than the
second year of the Agreement in each particular
employment/industry in the private sector, including the
commercial State-sponsored bodies.
The application of this Clause in the public service is set
out in the Memorandum of Understanding attached at Annex 1
and implementation in that area may commence not earlier than
the third year of the Agreement.
The application of this Clause in the case of the
Construction Industry is set out in the Memorandum of
Understanding attached at Annex 2 and implementation in that
area may commence before the end of 1991.
Negotiations under this Clause will take full account of the
implications for competitiveness the need for flexibility and
change and the contribution made by employees to such
change."
The Court so recommends.
Division: MrMcGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD92381 RECOMMENDATION NO. LCR13749
INDUSTRIAL RELATIONS ACTS 1946 to 1990
SECTION 20(1) INDUSTRIAL RELATIONS ACT, 1969
PARTIES: LOCTITE (IRELAND) LTD.
(REPRESENTED BY FEDERATION OF IRISH EMPLOYERS)
AND
MANUFACTURING SCIENCE FINANCE
SUBJECT:
1. A dispute concerning the payment of 3% under phase two of the
Programme for Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. The Company is involved in the research and manufacture of
adhesives. It currently employs 350 people in its two plants.
In 1991 the Company, paid the first phase of the Programme for
Economic & Social Progress (P.E.S.P.) which was due on 1st June
1991. During 1991 the Company drew up a three year agreement
outlining conditions for basic pay increases during that time.
The agreement was signed by two other unions but the Union
concerned refused on the grounds that it related to basic
increases only. The Union agreed to be bound by PESP but only
agreed to sign the conditions outlined by the Company on a yearly
basis.
In February, 1992 the Union served a claim on the Company for
payment of the Local Bargaining 3% payable under Clause 3 of PESP.
Prior to committing itself to any payment under Clause 3 the
Company wished to enter into a single negotiation which would
include both PESP and a Comprehensive Agreement. During
negotiations on this issue the due date fell for payment of the 3%
basic increase under the 2nd phase of PESP. The Company failed to
pay the second phase and are refusing to do so until such time as
negotiations on a Comprehensive Agreement are completed.
The Union referred the dispute to the Labour Court for
investigation under Section 20(1) of the Industrial Relations Act,
1969 and agreed to accept the recommendation of the Court. The
Labour Court investigated the dispute on 20th July, 1992.
UNIONS ARGUMENTS:
3. 1. The 3% basic increase due under the second phase of PESP
is completely separate from the Local Bargaining clause. As
such it is an increase which should be paid without any
reference to Clause 3. Payment of phase two is not relevant
to any differences the parties might have regarding Clause 3.
2. The Company has paid the second phase of PESP to the two
other unions despite the fact that they also remain in
disagreement over the 3% Local Bargaining clause. The Union
is being discriminated against as it is the only union who
did not sign the three year agreement. The Union contends
that it is already party to PESP which in itself is a three
year agreement. The Union is not prepared to sign any other
long term agreement which may prejudice ongoing reviews of
PESP.
COMPANYS ARGUMENTS
4. 1. The Company is not refusing to honour payment of the
second phase of PESP but is seeking to establish a single
negotiation which will deal with both a Comprehensive
Agreement and claims under Clause 3 of PESP. On completion
of such a negotiation the Company will then be in a position
to pay the second phase. In seeking to do this the Company
is adhering to an agreement signed by the Union in 1984 (copy
supplied to the Court).
2. The Company cannot accept that by signing a three year
agreement the Union would prejudice its position under
subsequent pay reviews. Such a situation would be contrary
to the spirit of the National Agreement. Both other unions
have signed the three year agreement and have received the 3%
due under the second phase of PESP. This has not jeopardised
their position and in fact discussions between these parties
and the Company are currently ongoing.
RECOMMENDATION:
The Court in all the circumstances of this case recommend that
phase 2 of the Programme for Economic and Social Progress be
implemented from the due date.
The parties should immediately enter into negotiations in
accordance with Clause 3 of the PESP.
In this regard the Court draws the attention of both parties to
the provisions of Clause 3 which reads as follows:
"Exceptionally, employers and trade unions may negotiate
changes in rates of pay and/or conditions of employment which
may be for an amount up to but not exceeding 3% of the
weekly/monthly basic pay cost of the group of employees
concerned. Such changes may be implemented, on a phased
basis where appropriate, commencing not earlier than the
second year of the Agreement in each particular
employment/industry in the private sector, including the
commercial State-sponsored bodies.
The application of this Clause in the public service is set
out in the Memorandum of Understanding attached at Annex 1
and implementation in that area may commence not earlier than
the third year of the Agreement.
The application of this Clause in the case of the
Construction Industry is set out in the Memorandum of
Understanding attached at Annex 2 and implementation in that
area may commence before the end of 1991.
Negotiations under this Clause will take full account of the
implications for competitiveness the need for flexibility and
change and the contribution made by employees to such
change."
The Court so recommends.
~
Signed on behalf of the Labour Court
27th August, 1992 Tom McGrath
A.O.S./M.H. -----------------------------------
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Ms. Aoibheann Ni Shuilleabhain, Court Secretary.