Labour Court Database __________________________________________________________________________________ File Number: CD9212 Case Number: LCR13611 Section / Act: S26(1) Parties: SMITHS BUILDING SUPPLIES - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning a sick pay scheme for clerical workers.
Recommendation:
5. Having regard to the trading and financial position of the
Company, the Court recommends that a sick-pay scheme providing for
payment of wages for up to three weeks sick absence each year
should be introduced for the claimants. The Court does not
recommend payment by way of bonus for sick-leave not required and
payments should be such as to provide for full-basic pay having
taken account of social welfare benefits and tax rebates where
appropriate.
The Court further recommends that the scheme should be reviewed at
the conclusion of the P.E.S.P. when regard should be had to the
norms in general commercial practice.
Division: Mr Heffernan Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD9212 RECOMMENDATION NO. LCR13611
INDUSTRIAL RELATIONS ACT, 1946 TO 1990
SECTION 26(1) INDUSTRIAL RELATIONS ACT, 1990
PARTIES: SMITHS BUILDING SUPPLIES
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning a sick pay scheme for clerical workers.
BACKGROUND:
2. 1. The clerical workers in the Company joined the Union in
November, 1990 and made a claim for the introduction of a sick
pay and pension scheme. The dispute was referred to the
conciliation service and conciliation conferences were held on
24th January, 25th April and 18th December, 1991.
2. It was agreed by the parties that discussions on a
pension scheme would be deferred until Phase 2 of the
Programme for Economic and Social Progress (PESP) was due.
The Company offered as a sick pay scheme the equivalent of the
manual workers' scheme which provides for paid sick leave of
10 working days per annum with workers entitled to receive
extra pay at Christmas equivalent to the unused amount of sick
leave allowance
3. The Company also indicated that it would be prepared to
discuss improvements in the offered sick pay scheme in the
context of negotiations under clause 3 of Appendix A to the
PESP (local bargaining). This fell short of the Union's
aspirations and was rejected. The dispute was referred to the
Labour Court for investigation and recommendation on 19th
January, 1992. A Labour Court investigation took place on
30th January, 1992.
UNION ARGUMENTS:
3. 1. The Union is seeking a sick pay scheme which is standard
in most white collar employments. The scheme sought is 26
weeks' sick leave per annum at full-pay and 26 weeks per annum
at half pay. This "run of the mill" scheme should be possible
in a Company which has recently spent £500,000 on
refurbishment. The workers are anxious to get a sick pay
scheme into operation immediately. The scheme offered is
unsuitable and unacceptable to the workers as it does not
provide for illness but rather in the opinion of the workers,
the scheme was accepted to enhance income. A proper sick pay
scheme is important to the workers in question who maintain
high standards of attendance at work.
2. In 1984, the "Industrial Relations News" published a
survey which found that 75% of all Irish workers are covered
by Company sick pay schemes and 90% of staff workers were
covered. A 1980 FIE survey found that 96% of staff workers
schemes paid full or average salary and that the most
frequently occurring period was 26 to 51 weeks. The Union is
seeking a scheme which has become the accepted standard in
Irish industry. In view of the length of time since the claim
was made, the workers are seeking immediate implementation.
COMPANY'S ARGUMENTS:
4. 1. The builders providers' business has suffered a serious
downturn in business due to a recession in the construction
industry. In addition, increased competition in the industry
precludes further concessions. In the overall circumstances
the Company's offer is both fair and reasonable.
2. In circumstances where the clerical staff were to
receive a better sick pay scheme than the manual workers,
claims would arise which were not envisaged under the terms of
the PESP. The Company's financial position dictates that
change must be gradual in order to spread the cost. There are
mechanisms and arrangements provided for in the P.E.S.P. for
the processing of additional claims. This is the correct
procedure for the Union to follow.
RECOMMENDATION:
5. Having regard to the trading and financial position of the
Company, the Court recommends that a sick-pay scheme providing for
payment of wages for up to three weeks sick absence each year
should be introduced for the claimants. The Court does not
recommend payment by way of bonus for sick-leave not required and
payments should be such as to provide for full-basic pay having
taken account of social welfare benefits and tax rebates where
appropriate.
The Court further recommends that the scheme should be reviewed at
the conclusion of the P.E.S.P. when regard should be had to the
norms in general commercial practice.
~
Signed on behalf of the Labour Court
Kevin Heffernan
30th March, 1992 ---------------
J.F./U.S. Chairman
NOTE:
Enquiries concerning this Recommendation should be addressed to
Mr. Jerome Forde, Court Secretary.