Labour Court Database __________________________________________________________________________________ File Number: CD93123 Case Number: LCR14031 Section / Act: S26(1) Parties: HEALTH BOARDS AND VOLUNTARY HOSPITALS - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION |
Proposal to introduce fortnightly pay and "Pay Path".
Recommendation:
5. The Court recommends that the proposed increases be
implemented as per the management letter of 14th January, 1993.
The Court has considered all of the views expressed by the parties
regarding the introduction of Pay Path and fortnightly pay.
The Court, in its consideration of the issue, has taken full
account of the implications for the employees concerned and the
serious financial constraints existing for the Health Authorities.
The Court takes the view that the introduction of Pay Path and
fortnightly pay should be accepted in principle.
The Court considers however the pay system should not be
introduced until the balance of the increase (#10.04) has been
implemented.
In the interim, the parties should discuss the particular problems
which will follow on the implementation of the pay system, in
particular the administration of the system and the effects for
individual employees.
The Court so recommends.
Division: MrMcGrath Mr McHenry Mr Rorke
Text of Document__________________________________________________________________
CD93123 RECOMMENDATION NO. LCR14031
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: HEALTH BOARDS AND VOLUNTARY HOSPITALS
(REPRESENTED BY LOCAL GOVERNMENT STAFF NEGOTIATIONS BOARD)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Proposal to introduce fortnightly pay and "Pay Path".
BACKGROUND:
2. In the period 1991 to 1992 discussions took place between the
parties concerning the pay and conditions of over 9,000
provincially based non-nursing personnel in the employment of
Health Boards and Voluntary Hospitals. The discussions took place
against the background of a memorandum exchanged between the
Public Service Employers and the Irish Congress of Trade Unions at
the time of negotiations on the Programme for Economic and Social
Progress (P.E.S.P.). The memorandum required that the parties
engage in direct discussion on the terms and conditions of
non-nursing staff employed by Health Boards and Voluntary
Hospitals.
At the final meeting of the working party held on 14th December,
1992, disagreement was recorded and the Union side indicated that
it would refer all the issues to the Labour Relations Commission.
By letter dated 14th January, 1993 the L.G.S.N.B. made the
following offer:
An increase of #16.04 per week on each point of the General
Operative/Non-nursing pay structure outside of Dublin, the
increase to be implemented as follows:
(i) An increase of #6 per week to be implemented with effect
from 1/1/93.
(ii) Implementation of the balance of the increase to be the
subject of discussions not later than 1/7/93.
In return the L.G.S.N.B. sought the following:
(1) A moratorium on the processing or award of all claims for
the lifetime of P.E.S.P.
(2) A commitment to co-operation with the introduction and
extension of technology.
(3) Co-operation with the introduction of social employment
schemes.
(4) Introduction of Pay Path (payment directly into
employees' bank accounts) and fortnightly pay.
Conciliation conferences were held on 26th January, 1993 and 8th
February, 1993. Agreement in principle was reached on all the
issues, except the issues of fortnightly pay and pay path, which
were referred to the Labour Court on 10th February, 1993. The
Labour Court hearing took place on 12th March, 1993.
UNIONS' ARGUMENTS:
3. 1. The transition from weekly to fortnightly pay creates a
gap of one week's pay which the workers concerned should not
be expected to bear and most of whom would not be in a
position to overcome.
2. The workers operate on the basis of a weekly budget.
Experience in the past has shown that people can run into
financial difficulties in attempting to adjust to a less
frequent pay period.
3. Many of the workers concerned do not hold current bank
accounts. The opening of such accounts would attract bank
charges, thus reducing the benefit of the pay award.
4. It would be difficult to remedy errors in pay cheques.
5. In certain circumstances the workers would have to wait
for up to 3 weeks to receive premia payments for duties
performed on weekends and public holidays.
6. the Unions have co-operated with management in reaching
agreement in principle on three of the four items sought by
the L.G.S.N.B.. The employers should pay the increase which
is long overdue without seeking further concessions.
BOARDS' ARGUMENTS:
4. 1. The memorandum obliges the parties in their negotiations
to take full account of the needs of the service, particularly
with regard to greater cost efficiency in the delivery of
services.
2. With this objective in mind, the management side has
identified pay frequency as an area where tangible cost
savings in administration can be made without any adverse
effects on the earnings of the grades concerned.
3. Fortnightly Pay Path is the only one of the proposed
efficiency measures which would generate immediate savings.
4. Failure to secure agreement on fortnightly Pay Path would
force management to seek alternative cost saving measures.
5. The Unions have raised certain objections to the
introduction of fortnightly Pay Path. It is accepted by the
management side that any potential difficulties that might
arise would have to be ironed out in advance of its
introduction and in consultation with the trade unions.
In areas where fortnightly Pay Path has already been
introduced, it has worked well.
6. It is not reasonable for the unions to withhold their
agreement to a measure which would enable the employing
authorities to effect some cash saving on payroll
administration, thereby making a small contribution to
offsetting the estimated #9m additional annual cost of
financing the #16 per week increase.
7. In the difficult financial situation facing the health
service, management's demand for fortnightly Pay Path. is not
unreasonable.
RECOMMENDATION:
5. The Court recommends that the proposed increases be
implemented as per the management letter of 14th January, 1993.
The Court has considered all of the views expressed by the parties
regarding the introduction of Pay Path and fortnightly pay.
The Court, in its consideration of the issue, has taken full
account of the implications for the employees concerned and the
serious financial constraints existing for the Health Authorities.
The Court takes the view that the introduction of Pay Path and
fortnightly pay should be accepted in principle.
The Court considers however the pay system should not be
introduced until the balance of the increase (#10.04) has been
implemented.
In the interim, the parties should discuss the particular problems
which will follow on the implementation of the pay system, in
particular the administration of the system and the effects for
individual employees.
The Court so recommends.
~
Signed on behalf of the Labour Court
Tom McGrath
____________________
15th April, 1993. Deputy Chairman
F.B./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.