Labour Court Database __________________________________________________________________________________ File Number: CD937 Case Number: LCR14001 Section / Act: S26(1) Parties: COW AND GATE LIMITED - and - MANUFACTURING, SCIENCE, FINANCE (MSF |
A dispute concerning the calculation of earnings for the purposes of compensation.
Recommendation:
The Court has considered the views of the parties as expressed in
their oral and written submissions and recommends as follows:
1. Bonus (#200)
The Court notes the issue in respect of bonus has been
clarified and is resolved.
2. Lump Sum (#300)
The Court is not satisfied that the lump sum paid can be
classified as wages earned in the base year and therefore
should not be included for the purpose of calculating
compensation.
3. Lay off
The basis of calculation should be consistent. The Court
considers therefore that the actual earnings should be used
for determining compensation.
The Court so recommends.
Division: MrMcGrath Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD937 RECOMMENDATION NO. LCR14001
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1) INDUSTRIAL RELATIONS ACT, 1990
PARTIES: COW AND GATE LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
MANUFACTURING, SCIENCE, FINANCE (MSF)
SUBJECT:
1. A dispute concerning the calculation of earnings for the
purposes of compensation.
BACKGROUND:
2. 1. The Company which is a subsidiary of Nutricia in
Holland, is involved in the manufacture of baby food and
employs 157 people in its Wexford plant. A dispute arose in
relation to the basis to be used to calculate earnings for
the purposes of a formula provided for in Labour Court
Recommendation LCR13350 whereby earnings in 1991, 1992 and
1993 were to be maintained at the 1990 level. Two issues
were the subject of disagreement:-
a) Lump sum payments
The Company was not prepared to agree to the inclusion
of lump sum payments of #300 and #200 in the 1990
earnings figure.
b) Compensation during lay-off
The Company proposed taking actual earnings for the
period worked and adding on a notional figure in respect
of the period of lay-off. The figure they proposed
using was potential earnings including potential bonus
for the period in question.
2. The dispute was referred to the Labour Relations Commission
on the 21st July, 1992 and a conciliation conference took
place on the 25th November, 1992. Agreement could not be
reached and the issue was referred by the Labour Relations
Commission to the Labour Court on the 7th January, 1993. The
matter was investigated by the Labour Court on the 19th
January, 1993 in Wexford.
UNION'S ARGUMENTS:
3. 1. In calculating earnings in the year 1990 the Company
included the bonus paid between April 1990 and December 1990.
The bonus of #200 covering January 1991 to 31st March, 1991
should therefore be included in calculating the base year
earnings.
2. The #300 payment was in lieu of a wage increase and
therefore should be included in calculating the base year
earnings.
3. The actual earnings in this tax year should be used for
determining compensation.
COMPANY'S ARGUMENTS:
4. 1. The Company has complied with every detail relating to
payments arising out of LCR13350 and LCR13747.
2. All additional increases have been applied and lump sum
payments made.
3. All lump sums must be treated as a once off payment and
should not be included for future compensation calculations.
4. The lay-off period should be treated in exactly the same
manner as lost bonus in determining the potential earnings
for the year.
5. At no stage was the #300 mentioned as being in lieu of a
wage increase.
RECOMMENDATION:
The Court has considered the views of the parties as expressed in
their oral and written submissions and recommends as follows:
1. Bonus (#200)
The Court notes the issue in respect of bonus has been
clarified and is resolved.
2. Lump Sum (#300)
The Court is not satisfied that the lump sum paid can be
classified as wages earned in the base year and therefore
should not be included for the purpose of calculating
compensation.
3. Lay off
The basis of calculation should be consistent. The Court
considers therefore that the actual earnings should be used
for determining compensation.
The Court so recommends.
~
Signed on behalf of the Labour Court
22nd March, 1993 Tom McGrath
P.O.C./M.H. ____________________________________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Paul O'Connor, Court Secretary.