Labour Court Database __________________________________________________________________________________ File Number: CD95321 Case Number: LCR14850 Section / Act: S26(1) Parties: THERMO KING EUROPE (THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - and - AMALGAMATED ENGINEERING AND ELECTRICAL UNION |
Claim for improvements in a sick pay scheme.
Recommendation:
On the basis of the evidence presented by the parties the Court is
not satisfied that the sick pay scheme in the Company is out of
line with those in similar employments. The Court accordingly
finds that the claim is not covered by Clause 4 of the PCW and
does not recommend in favour of the claimants.
Division: Ms Owens Mr Pierce Mr Walsh
Text of Document__________________________________________________________________
CD95321 RECOMMENDATION NO. LCR14850
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
THERMO KING EUROPE
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
AMALGAMATED ENGINEERING AND ELECTRICAL UNION
SUBJECT:
1. Claim for improvements in a sick pay scheme.
BACKGROUND:
2. The Company is involved in the manufacture of refrigeration
units. It is based in Galway and employs 600 workers.
The dispute before the Court concerns the Union's claim on
behalf of approximately 400 workers, for improvements in the
Company's sick pay scheme. The Union is seeking amendments
to the scheme which would provide for payment during the
first 3 days of any period of illness and for an extension of
the period of payment from 13 to 26 weeks. The Company
rejects the claim.
Local level discussions took place but no agreement was
reached and the matter was referred to the Labour Relations
Commission. A conciliation conference took place on 12th
May, 1995. As no agreement was reached the dispute was
referred to the Labour Court on 23rd May, 1995 under Section
26(1) of the Industrial Relations Act, 1990. A Labour Court
hearing took place in Galway on 19th July, 1995.
UNION'S ARGUMENTS:
3. 1. Thermo King's plant in Galway is part of the Westing
House Corporation, a highly profitable organisation, and
world leader in the manufacture of refrigeration units
for the transport industry.
2. It is not uncommon for multinational companies generally
to pay sick benefit from day one and for a period of 26
weeks.
3. The income continuance plan operating in the Company
provides for payment after a period of 26 weeks
disablement. This leaves employees exposed in the 13
weeks period after the sick benefit payment has ceased.
This has caused considerable hardship to employees and
their family's in the past.
4. The Company's policy of operating a two-tier sick pay
scheme is discriminatory and unacceptable. The workers
concerned have good attendance records and in the
circumstances should enjoy similar sick leave benefits
to those afforded to members of staff.
COMPANY'S ARGUMENTS:
4. 1. The Union's claim is precluded under the terms of the
Programme for Competitiveness and Work (PCW). Under the
PCW, the Union can bring a claim for an improvement in
its sick pay benefits where it can show that the scheme
is substantially out of line with appropriate standards
in comparable employments. There is no merit in the
Union's claim as the scheme operated in the Company
compares favourably with other schemes in the sector in
which it operates.
RECOMMENDATION:
On the basis of the evidence presented by the parties the Court is
not satisfied that the sick pay scheme in the Company is out of
line with those in similar employments. The Court accordingly
finds that the claim is not covered by Clause 4 of the PCW and
does not recommend in favour of the claimants.
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Signed on behalf of the Labour Court
1st August, 1995 Evelyn Owens
F.B./D.T. ____________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.