Labour Court Database __________________________________________________________________________________ File Number: CD94338 Case Number: LCR14547 Section / Act: S26(1) Parties: VOLUNTARY HEALTH INSURANCE - and - MANUFACTURING SCIENCE FINANCE |
Implementation of clause 3 of the Programme for Economic and Social Progress (PESP).
Recommendation:
Having considered the submissions from the parties, and taking
into account the detailed and extended negotiations which have
taken place, both at local and L.R.C. level, where the principle
of extending the working week was accepted by both parties, the
Court recommends as follows:-
(1) The Company agrees to pay the 3% under the Special Clause of
P.E.S.P. from 1st September, 1993, subject to the Union
agreeing:-
(2) An extention to the working week of 40 minutes to be applied
retrospectively to 1st September, 1993.
In this regard the Court notes that the Union side is
agreeable to the extra time being worked within an agreed
period.
(3) The Court notes that items A, B and C of the proposals of 3rd
August, 1994 are agreed by the parties.
(4) The Court also noted that the question of an increase in the
P.I.B. is to be dealt with separately by the parties.
Division: Ms Owens Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD94338 RECOMMENDATION NO. LCR14547
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
VOLUNTARY HEALTH INSURANCE
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
MANUFACTURING SCIENCE FINANCE
SUBJECT:
1. Implementation of clause 3 of the Programme for Economic and
Social Progress (PESP).
BACKGROUND:
2. The dispute concerns a claim by approximately 350 workers for
a 3% pay increase under clause 3 of the PESP, retrospective
to 1st January, 1993. The claim was first made in March,
1993. The dispute was referred to the Labour Relations
Commission (L.R.C.) and a number of conciliation conference
took place. The Company's final offer at a conciliation
conference on 8th April, 1994 follows:-
(a) Office opening hours extended to full day on Holy
Thursday (at present it is a half-day).
(b) Procedural Agreement (details supplied to the Court).
(c) Increase in restaurant charges.
(d) Total weekly hours to be increased from 34 hours to 34
hours 50 minutes.
The Union agreed to all points except point D. It will agree
to an increase in the working week from 34 hours to 34 hours
30 minutes.
The Company operates a Personal Injury Benefit scheme
(P.I.B.) at present, with no cost to the workers. It is
asking the workers to contribute .5% to the scheme. The
Union is not agreeable to pay the .5% but is agreeable to
discuss it with the Company.
As the dispute could not be resolved, it was agreed to refer
it to the Labour Court under Section 26(1) of the Industrial
Relations Act, 1990 on 20th June, 1994. A Labour Court
hearing took place on 12th August, 1994 (the earliest date
suitable to the parties).
UNION'S ARGUMENTS:
3. 1. The workers have co-operated with the Company on a wide
range of issues (details supplied to the Court) which
have contributed to the Company's productivity. This
has resulted in the Company having the lowest
administration costs when compared to international
standards of similar companies.
2. Due to substantial productivity changes workers are
dealing with considerably more claims per day than two
years ago.
3. The workers are willing to extend the working week by 30
minutes and have agreed to the Company's other
suggestions. They are also willing to work up
retrospective time over the next 12 months. This is
more than sufficient to justify the 3% pay increase.
COMPANY'S ARGUMENTS:
4. 1. An increase in costs e.g. medical inflation running at
5.9% rather than 1.9%, cost of treatment of V.H.I.
members increased by 10.6% in year ending 1994, has
meant financial difficulties for the Company. The 3%
pay claim can only be granted if it is self-financing.
2. To date, all pay increases under the PESP have been
paid. A survey in 1991 showed that the pay and
conditions of the workers concerned compared favourably
with a range of other companies in the public and
private sectors.
3. A survey of 18 companies showed that the average working
week is 34 hours 45 minutes. The Company's proposals to
increase the working week to 34 hours 50 minutes is not
unreasonable. Workers in the Company are on flexi-time
and could work up the extra 50 minutes as they choose.
RECOMMENDATION:
Having considered the submissions from the parties, and taking
into account the detailed and extended negotiations which have
taken place, both at local and L.R.C. level, where the principle
of extending the working week was accepted by both parties, the
Court recommends as follows:-
(1) The Company agrees to pay the 3% under the Special Clause of
P.E.S.P. from 1st September, 1993, subject to the Union
agreeing:-
(2) An extention to the working week of 40 minutes to be applied
retrospectively to 1st September, 1993.
In this regard the Court notes that the Union side is
agreeable to the extra time being worked within an agreed
period.
(3) The Court notes that items A, B and C of the proposals of 3rd
August, 1994 are agreed by the parties.
(4) The Court also noted that the question of an increase in the
P.I.B. is to be dealt with separately by the parties.
~
Signed on behalf of the Labour Court
18th August, 1994 Evelyn Owens
C.O'N./D.T. __________________
Deputy Chairperson
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.