Labour Court Database __________________________________________________________________________________ File Number: CD92205 Case Number: LCR13645 Section / Act: S26(1) Parties: IRISH PRESS NEWSPAPERS LIMITED - and - DUBLIN PRINTING GROUP OF UNIONS |
Dispute concerning the implementation of the second phase of the pay provisions of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
The Court has considered the submissions made by the parties.
It is of the opinion that the Management's offer made in 1990
committing itself to the payment of the terms of the next wage
round, a commitment endorsed by the Court in Recommendation
12932, does not allow for any modification or cancellation of
the payments due under P.E.S.P.
Having regard to the circumstances in which the offer was made
the Court does not consider that the qualifications regarding
the economic and commercial circumstances of the Company apply
in this case.
The Court therefore recommends that the 2nd phase of increase
under PESP be made with effect from the due date.
Division: Mr O'Connell Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD92205 RECOMMENDATION NO. LCR13645
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: IRISH PRESS NEWSPAPERS LIMITED
and
DUBLIN PRINTING GROUP OF UNIONS
SUBJECT:
1. Dispute concerning the implementation of the second phase
of the pay provisions of the Programme for Economic and Social
Progress (P.E.S.P.).
BACKGROUND:
2. In 1990 the Company issued supplemental agreements to the
Unions following discussions on a survival plan. The
rationalisation proposals were the subject of Labour Court
Recommendation LCR12932 which issued in June, 1990. The
Recommendation included the following paragraph headed
"increases":-
"The Court has noted the various claims made by the
different groups in response to the Management's demands.
These claims based on such criteria as the existing
shortfall in earnings between Irish Press employees and
those in other papers, and compensation for the
introduction of new technology must, in the view of the
Court, at this stage be considered against the scenario of
recurrent and increasing losses which have been incurred by
the I.P. group of papers over a period of years.
Management has offered 3% on acceptance of the Supplemental
Agreements, 3% at the time of the move to new premises and
has committed itself to payment of the terms of the next
wage round. In these circumstances the offer made by
Management is recommended for acceptance as the best
possible at the moment and it does have the virtue of
ensuring that no further erosion of comparative rates takes
place in the medium term future."
On 1st April, 1991 the Company implemented the first phase of
the pay provisions of the P.E.S.P. The second phase (i.e. 3%)
is due under the P.E.S.P. on 1st April, 1992. The Company is
claiming inability to pay the 2nd phase increase and is invoking
the provisions of clause 2 of the P.E.S.P. which refers to
"having due regard to the economic and commercial circumstances
of the Company".
The Unions claim that the 2nd phase of the P.E.S.P. should be
paid from the due date. No agreement could be reached at local
level discussions and the matter was referred on 19th March,
1992 to the Labour Relations Commission. A conciliation
conference was held on 27th March, 1992 at which no agreement
was reached. The dispute was referred to the Labour Court on
7th April, 1992 in accordance with Section 26(1) of the
Industrial Relations Act, 1990. The Court investigated the
dispute on 30th April, 1992.
UNION'S ARGUMENTS:
3. 1. In the supplemental agreements and in LCR12932 the
Company committed itself to pay any national pay agreement
which might come into effect in 1991. In April, 1991 the
Company implemented the first phase of the P.E.S.P. (i.e.
4%). Given the commitments made by the Company the Unions
expected that the pay terms of the P.E.S.P. would be paid
in full. The Company should not now renege on its
commitments made in 1990.
2. The P.E.S.P. is a national three year Programme and
the pay terms must be accepted in full. The Company cannot
decide to pay one phase of the pay terms and refuse to pay
the balance due. Under the P.E.S.P. the Company are
obliged to consult with the Unions if they have
difficulties and have failed to do so. The Company's
statement in its submission that it might not be able to
sustain its commitment to non compulsory redundancy is not
acceptable to the Unions and will be resisted.
COMPANY'S ARGUMENTS:
4. 1. In the light of the present trading position of the
Company and having due regard as stated in Clause 2 of the
P.E.S.P. to "the economic and commercial circumstances of
the firm" Irish Press Newspapers Ltd. cannot pay the 2nd
Phase of the P.E.S.P. To do so would be gravely
detrimental to the economic well being of the Company and
would have serious consequences for employment levels. It
is also not practical to consider deferment or back dating
of payment of the 2nd phase.
2. A wage increase at this juncture would force the
Company to seek additional economies in payroll through
further immediate redundancies across the board. These
additional redundancies would inevitable lead to the
situation where the commitment to non compulsory redundancy
could not be sustained. Additional operating efficiencies
need to be achieved and even more would be required in the
event of 2nd Phase PESP payment.
3. The Company has already paid wage increases of 4% and
3% since July, 1990. The Company is committed to pay an
additional 3% wage increase to all staff upon successful
transfer of all relevant staff to Parnell House. It is not
practical to consider any further pay increases for staff
at this time.
RECOMMENDATION:
The Court has considered the submissions made by the parties.
It is of the opinion that the Management's offer made in 1990
committing itself to the payment of the terms of the next wage
round, a commitment endorsed by the Court in Recommendation
12932, does not allow for any modification or cancellation of
the payments due under P.E.S.P.
Having regard to the circumstances in which the offer was made
the Court does not consider that the qualifications regarding
the economic and commercial circumstances of the Company apply
in this case.
The Court therefore recommends that the 2nd phase of increase
under PESP be made with effect from the due date.
~
Signed on behalf of the Labour Court
John O'Connell
7th May, 1992 -----------------
A.S./N.Ni.M. Deputy Chairman
NOTE:
Enquiries concerning this Recommendation should be addressed to
Mr. Alfie Smith, Court Secretary.