Labour Court Database __________________________________________________________________________________ File Number: CD92766 Case Number: LCR13930 Section / Act: S26(1) Parties: ROYAL DUBLIN SOCIETY - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim for the implementation of Phase 2 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
5. The Court, having considered the written and verbal
submissions of the parties, believes that the Society should
implement the 2nd Phase of the P.E.S.P. from the 1st of January,
1993. Furthermore when the cost measures now necessary to reverse
the Society's losses are agreed, the parties should agree a date
when the outstanding retrospection will be paid.
Division: Ms Owens Mr Keogh Mr O'Murchu
Text of Document__________________________________________________________________
CD92766 RECOMMENDATION NO. LCR13930
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: ROYAL DUBLIN SOCIETY
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim for the implementation of Phase 2 of the Programme for
Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. The claim for the implementation of Phase 2 of the P.E.S.P.
which fell due the 1st of April, 1992, is on behalf of 20 general
and maintenance workers. The Union believes that the 3% increase
due under Phase 2 should be paid from the due date. The Society
has pleaded inability to pay the increase on the basis of
projected losses in 1992 of approximately #100,000. The dispute
was the subject of a conciliation conference in the Labour
Relations Commission on the 1st December, 1992, at which agreement
was not reached. The dispute was referred to the Labour Court on
the 9th December, 1992, in accordance with Section 26(1) of the
Industrial Relations Act, 1990. The Court investigated the
dispute on the 15th of January, 1992.
UNION'S ARGUMENTS:
3. 1. The Society claimed inability to pay Phase 1 of the
P.E.S.P. due to economic and commercial circumstances. In
October, 1991, the Labour Court recommended that "....the
long-term interests of all are best served by the payment of
Phase 1 of the P.E.S.P." (L.C.R. 13428).
2. The Society has submitted proposals to the Government
concerning a National Conference Centre at Ballsbridge, the
establishment of which would lead to a turn-around of its
fortunes. The proposals are fully supported by the Union.
3. Staffing levels in the Society have been reduced by 50%
since 1983. The Society has benefited from increased
productivity from the remaining staff.
4. The workers are not in a position to sustain a
wage-freeze and have been extremely patient, considering the
fact that the increase is due since April, 1992.
5. The Society has recently recruited two Deputy Chief
Executives who presumably command large salaries. It is
unreasonable to expect workers to forego their increase in
order to subsidise these new salaries.
SOCIETY'S ARGUMENTS:
4. 1. In 1992 the Society suffered a sizeable decrease in
membership income. This set-back was followed by the most
disappointing Spring Show since the 1930s, and the
cancellation of the Motor Show. It is now clear that the
Society's 1992 operating loss will be in the region of
#100,000.
2. The implications of a #100,000 loss for the Society are
severe. The Society is currently trying to address this
matter by improving its cost-competitiveness.
3. The payment of Phase 2 of P.E.S.P. would add a further
#33,000 to the Society's payroll bill.
4. Clause 2 of the P.E.S.P. provides as follows:
"Economic and Commercial Circumstances
The increases in Clause 1 shall be negotiated through
normal industrial relations machinery, due regard being
had to the economic and commercial circumstances of the
particular firm, employment or industry".
The Clause was intended to cover situations like that which
the Society is currently experiencing. Payment of Phase 2 of
P.E.S.P. would considerably undermine the organisation's
financial situation and ability to get through the difficult
period ahead.
RECOMMENDATION:
5. The Court, having considered the written and verbal
submissions of the parties, believes that the Society should
implement the 2nd Phase of the P.E.S.P. from the 1st of January,
1993. Furthermore when the cost measures now necessary to reverse
the Society's losses are agreed, the parties should agree a date
when the outstanding retrospection will be paid.
~
Signed on behalf of the Labour Court
Evelyn Owens
__________________
21st January, 1993 Deputy Chairman.
M.K./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Keegan, Court Secretary.