Labour Court Database __________________________________________________________________________________ File Number: CD9418 Case Number: LCR14412 Section / Act: S26(1) Parties: CENTRAL HOTEL - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute arising from a claim for a pay increase for house- assistants and related issues.
Recommendation:
The Court has considered the submissions of the parties and the
additional oral evidence presented at the hearing. Having regard
to the corrected statement of earnings of the claimants, i.e. that
service charge payments are in addition to the quoted basic rates,
to the financial performance of the Company and the recent
redundancies which were found to be necessary, the Court
recommends as follows:-
- the Company and the Union should negotiate the
introduction on a phased basis of the P.E.S.P. pay
provisions and 19 days' annual leave. Regard should be
taken of the Company's financial position in these
negotiations;
- the Company and the Union should negotiate the
distribution basis for service charges but in doing so
should provide for the continued inclusion on a red-circle
basis of the management person who is included at present.
Having regard to the circumstances clarified at the hearing, the
Court does not recommend concession of any other of the Union's
claims.
Division: Mr Heffernan Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD9418 RECOMMENDATION NO. LCR14412
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
CENTRAL HOTEL
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute arising from a claim for a pay increase for house-
assistants and related issues.
BACKGROUND:
2. The claim is on behalf of 8 house-assistants employed by the
hotel at Exchequer Street, Dublin. The Union is seeking
improvement in the pay and other conditions of employment of
the assistants, in line with the norm for the industry, as
follows:-
i) Substantial increase in basic pay;
ii) Introduction of overtime rates for hours worked after
completion of rostered hours;
iii) Double day's pay for Sunday working;
iv) The rostering of every second Sunday as a day off;
v) Treble-time pay for the working of public holidays;
vi) Increase in annual leave from 15 days to 20 days;
vii) Discussion concerning the distribution of the 12.50%
Service Charge.
The claim was rejected by the Hotel on the grounds that it
was suffering severe financial loss. The dispute was
referred to the Labour Relations Commission and a
conciliation conference took place on the 28th of September,
1993, at which agreement was not reached. The dispute was
referred to the Labour Court on the 14th of January, 1994, in
accordance with Section 26(1) of the Industrial Relations
Act, 1990. The Court investigated the dispute on the 11th of
March, 1994.
UNION'S ARGUMENTS:
1. The workers have received no improvement in their
conditions of employment or rates of pay since the hotel
opened in March, 1991.
2. The basic rate of pay of #3.00 per hour (with no
guarantee of hours) compares poorly with other similar
hotels (details supplied to the Court).
3. The house assistants have only 15 days' annual leave,
compared with a norm of 20 days in other similar hotels.
4. No overtime payments apply to the assistants, nor are
there any Sunday premiums paid, irrespective of the
number of Sundays worked.
5. The system of service charge distribution should be
negotiated in order to comply with the norm of the
hotels industry. The service charge distribution should
only apply to agreed categories of staff.
COMPANY'S ARGUMENTS:
3. 1. The hotel opened in 1991 and has sustained increasing
losses each year since then (details supplied to the
Court).
2. The hotel has suffered greatly as a result of the
opening of two new budget-class hotels in the city last
year, i.e. Jury's Inn and the Temple Bar Hotel. Both
offer accommodation at a price with which the Central
Hotel cannot compete.
3. The hotel has recently been forced to close its
restaurant at night as the level of business was
insufficient to cover overheads and salaries.
4. The hotel has only recently survived a High Court
hearing pursuant to a creditor's attempt to have the
Company wound-up.
RECOMMENDATION:
The Court has considered the submissions of the parties and the
additional oral evidence presented at the hearing. Having regard
to the corrected statement of earnings of the claimants, i.e. that
service charge payments are in addition to the quoted basic rates,
to the financial performance of the Company and the recent
redundancies which were found to be necessary, the Court
recommends as follows:-
- the Company and the Union should negotiate the
introduction on a phased basis of the P.E.S.P. pay
provisions and 19 days' annual leave. Regard should be
taken of the Company's financial position in these
negotiations;
- the Company and the Union should negotiate the
distribution basis for service charges but in doing so
should provide for the continued inclusion on a red-circle
basis of the management person who is included at present.
Having regard to the circumstances clarified at the hearing, the
Court does not recommend concession of any other of the Union's
claims.
~
Signed on behalf of the Labour Court
22nd April, 1994 Kevin Heffernan
M.K./M.M. ----------------
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Keegan, Court Secretary.