Labour Court Database __________________________________________________________________________________ File Number: CD95465 Case Number: LCR14994 Section / Act: S26(1) Parties: IRISH MUSIC RIGHTS ORGANISATION (I.M.R.O.) (Represented by THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - and - MANUFACTURING SCIENCE FINANCE |
Dispute concerning the introduction of incremental scales.
Recommendation:
Having examined the proposals for new salary scales submitted by
both parties the Court recommends the introduction of new scales
as follows:-
Grade
Clerical Assistant £9,000 x 8(375) - £12,000
Files Clerk
Receptionist £10,900 x 7(375) x 1(475) -
Cash Clerk £14,000
General Administration Clerk
Clerical Officer £13,000 x 8(375) - £16,000
Secretary
Customer Accounts Executives £17,280 x 8(375) x 1(180) -
£20,460
Plus £4,000 Bonus.
The present holder of the filing clerk position to be red-circled.
The Court further recommends that the above scales be implemented
from 1st January, 1996 and that the method of assimilation be on
the basis of moving across to the nearest point on the new scale
without incurring a loss.
Division: Ms Owens Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD95465 RECOMMENDATION NO. LCR14994
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
IRISH MUSIC RIGHTS ORGANISATION (I.M.R.O.)
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
MANUFACTURING SCIENCE FINANCE
SUBJECT:
1. Dispute concerning the introduction of incremental scales.
BACKGROUND:
2. Up to the end of 1994, the I.M.R.O. was a subsidiary of the
UK-based Company, the Performing Right Society (P.R.S.). On
the 1st of January, 1995, the I.M.R.O. became a separate
entity and, following discussion with the Union, agreed to
pay the Programme for Economic and Social Progress (PESP)
local bargaining 3% and to negotiate on the introduction of
incremental salary scales. Agreement was not reached on the
salary scales and the matter was the subject of two
conciliation conferences, under the auspices of the Labour
Relations Commission, at which agreement was not reached.
Both parties proposed the introduction of salary scales which
were unacceptable to the other side.
The dispute was referred to the Labour Court on the 14th of
August, 1995, in accordance with Section 26(1) of the
Industrial Relations Act, 1990. The Court carried out its
investigation on the 21st of September, 1995.
UNION'S ARGUMENTS:
3. 1. During early discussions on scales it came to light that
the P.R.S. operated a yearly review instead of national
agreements. It transpired, after research, that a
number of workers received only the bare minimum of
10.75% over three years (PESP). They were on scales but
were actually receiving no increments.
2. The Company accepted at an early stage that incremental
scales should be introduced and that national agreements
should be paid on due dates. The Company proposed new
scales which, in some cases, represented reductions of
up to £4,000 per annum. The Union has suggested scales
(details supplied to the Court) more in line with
existing scales on the basis that assimilation would be
decided by the job function and the size of increase
already received over the previous 3 years. If workers
received increases over and above 10.75% over 3 years,
they could expect a smaller increase than those who
received the minimum of 10.75%. The Company created a
scale last year for Accounts Executives with a range of
approximately £16,500 to £20,000. These Accounts
Executives can be accommodated on the Union's top scale.
3. Under the `Transfer of Undertakings' directive the
workers are entitled to, and will insist upon, the
existing scales, if agreement cannot be reached on new
scales. As agreement has already been reached on the
introduction of incremental scales, all that remains for
decision is the number of increments to apply to
existing scales, as the alternative scales suggested by
the Company are unacceptable.
COMPANY'S ARGUMENTS:
4. 1. The overriding consideration in setting salary scales
must be the organisation's ability to pay. The I.M.R.O.
is a small Irish organisation and, because it is a
monopoly, very strict controls must be maintained on all
spending, including staffing costs. Currently, overhead
spending is running in excess of 25% which must be
addressed through appropriate efficiency measures.
Management's proposals will not imply a reduction of
conditions for any employee. The scales proposed are
reasonable under all of the circumstances and the
Company is not in a position to improve on its proposal.
2. The Union's claim appears to be for a pay increase for
the workers, and is, therefore, cost-increasing which is
contrary to the terms of the PESP.
3. The Company's agreement with the Union to move to an
incremental payment system established a commitment from
management to change the structure of pay determination
within the Company. It did not imply any commitment to
increase pay rates for individual staff members.
4. In making its proposal management looked at both the Hay
pay system and current market realities and is satisfied
that the rates proposed are competitive.
5. The incremental pay scales proposed cannot be considered
in isolation. Full consideration must be given to the
overall favourable package of terms and conditions that
apply as they represent the total cost to the Company.
6. The introduction of an incremental scale implies the
benefit to the employee of a contractual commitment from
the Company to automatically increase salaries by the
relevant increment until they reach the top of their
scale. This gives a level of certainty that did not
exist under Hay and also allows staff to move to the top
of their scale over a fixed term period.
RECOMMENDATION:
Having examined the proposals for new salary scales submitted by
both parties the Court recommends the introduction of new scales
as follows:-
Grade
Clerical Assistant £9,000 x 8(375) - £12,000
Files Clerk
Receptionist £10,900 x 7(375) x 1(475) -
Cash Clerk £14,000
General Administration Clerk
Clerical Officer £13,000 x 8(375) - £16,000
Secretary
Customer Accounts Executives £17,280 x 8(375) x 1(180) -
£20,460
Plus £4,000 Bonus.
The present holder of the filing clerk position to be red-circled.
The Court further recommends that the above scales be implemented
from 1st January, 1996 and that the method of assimilation be on
the basis of moving across to the nearest point on the new scale
without incurring a loss.
~
Signed on behalf of the Labour Court
5th December, 1995 Evelyn Owens
M.K./D.T. ________________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Keegan, Court Secretary.