Labour Court Database __________________________________________________________________________________ File Number: CD95712 Case Number: AD9621 Section / Act: S13(9) Parties: NAVAN CARPETS LIMITED (Represented by THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Appeal by the Union against Rights Commissioner's Recommendation No. DC264/95.
Recommendation:
The Court having considered the written and oral submissions made
by the parties upholds the Rights Commissioner's recommendation
and rejects the appeal.
The Court so decides.
Division: Mr Flood Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD95712 APPEAL DECISION NO. AD2196
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969
PARTIES:
NAVAN CARPETS LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Appeal by the Union against Rights Commissioner's
Recommendation No. DC264/95.
BACKGROUND:
2. The worker concerned commenced employment with the Company in
the accounts department in 1969. He is presently employed
there in a supervisory capacity and is on the top point of
his salary scale. In 1990, 1991 and 1992 the worker received
ex-gratia payments of £120, £100 and £100 respectively. The
increases ceased in 1993. The Union claimed that the
payments should be consolidated into the worker's salary with
effect from 1993. Management rejected the claim. The
dispute was referred to a Rights Commissioner for
investigation and recommendation. On the 10th November, 1995
the Rights Commissioner issued his recommendation as
follows:-
Recommendation
"I am satisfied that the year-end ex-gratia payments
received by the claimant in 1990, 1991 and 1992 were
made by the Company at their own discretion as some form
of performance bonus.
I am further of the view that the worker was never under
any illusion or had any real expectation that they would
be at a further point in time consolidated into his
annual basic salary and as I consider there is no
substance in his claim in that regard, I therefore
recommend that it fails."
On the 12th December, 1995 the Union appealed the Rights
Commissioner's Recommendation to the Labour Court. The Court
heard the appeal on the 22nd February, 1996.
UNION'S ARGUMENTS:
3. 1. The Company discontinued above-scale payments made to
the worker for three years without any negotiation or
agreement in 1993 despite the fact that the worker
continued to perform significant additional duties
(details supplied to the Court). These extra duties
took up approximately 40 to 50 hours per month and
placed a considerable strain on the worker's ability to
cope with his normal duties.
2. Some employees not undertaking extra work are still
benefiting from increments while other workers have
received increases to their salaries. At the same time
management rejected the worker's claim on the grounds
that it could not afford the extra costs.
3. It is particularly objectionable that the Company should
stop the ex-gratia payments in a year that the worker
undertook substantial extra duties. It is incumbent on
the Company to restore the worker's increments with
effect from 1st January, 1993.
COMPANY'S ARGUMENTS:
4. 1. The worker reached the top point of the clerical salary
scale 3 in 1987. He moved to the supervisory grade in
January, 1990. The supervisory rate is the equivalent
of one increment (£387) above the maximum of salary scale
3. During the years 1990, 1991 and 1992 the worker was
paid discretionary payments of £120, £100 and £100
respectively which were personal to the individual and
not linked to any scale.
2. The Company never intended that these lump sum payments
would become a regular feature of the worker's
remuneration. They were made in recognition of
significant co-operation with changes and work completed
during the three years. Management did not give a
commitment to the worker that the payments would be
regularly continued. The Company cannot consider making
these payment on an annual basis.
DECISION:
The Court having considered the written and oral submissions made
by the parties upholds the Rights Commissioner's recommendation
and rejects the appeal.
The Court so decides.
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Signed on behalf of the Labour Court
17th April, 1996 Finbarr Flood
T.O'D./D.T. ________________
Deputy Chairman