FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : SWORDS CREDIT UNION - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Pay and conditions of employment.
BACKGROUND:
2. The Credit Union was formed in 1970 and operated on a voluntary basis. In 1991, the Board of Directors employed staff to facilitate opening during office hours. The Union is seeking the introduction of a pay scale on behalf of two of its members whose salaries are currently subjected to annual review. The Union also claims that one of the workers concerned is "de facto" office manager and should be appointed and remunerated accordingly. The Board rejects the Union's claims and states that both internal and external applicants will be considered for the post of office manager.
The dispute was the subject of three conciliation conferences under the auspices of the Labour Relations Commission between 5th February, 1996, and 2nd September, 1996. As agreement could not be reached the dispute was referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on 15th October, 1996.
UNION'S ARGUMENTS:
3. 1. Since 1991 the volume of loans and transactions has increased significantly. The Irish League of Credit Unions (I.L.C.U.) recommends one staff member per 1,000 active members, yet there are only two full time staff and two part time staff employed. There are approximately 7,400 active members. The projected ratio of salaries to income for 1996 is 6.7%, which is significantly lower than the I.L.C.U.'s recommended figure of 14%.
2. Previous Labour Court recommendations (LCR 15073 and LCR 15196) recommended salary scales of £9,000 to £13,500 and £8,000 to £14,000 respectively. The Union's claim is for a salary scale of £9,000 to £14,000 by increments of £1,000 per annum. The scale should be effective from 1st September, 1995 and adjusted retrospectively by the terms of the Programme for Competitiveness and Work.
3. The functions and responsibilities undertaken by one member of staff equate with those of managers in other comparable credit unions. It is the Union's contention that the employee concerned is "de facto" office manager and that if a new manager is appointed, he/she will carry out duties currently being performed by this employee. The £14,000 maximum point of the proposed salary scale should also be exceeded in the case of the second employee who deputises for the first in her absence.
BOARD'S ARGUMENTS:
4. 1. The Board cannot pay staff based on their perceived roles and responsibilities. The workers concerned were employed to carry out routine teller type duties which were reflected in their starting pay. Since 1992 they have been paid annual salary increases of at least 4%. Administrative skills were not required of the staff as the Board has always retained control of the Credit Union and has full responsibility for the management of staff, office procedures and ongoing development.
2. Although initially opposed to the introduction of a clerical pay scale, the Board is willing to consider a scale of £10,000 to £13,500 in incremental steps of £500 x 5 and £1,000 x 1. The scale should be introduced at the next salary review date scheduled for July, 1997.
3. The treasurer performs many of the duties claimed to be carried out by one of the claimants. Due to the expected growth of the business, the decision has been made to employ an office manager and existing staff may apply for the post. The work of office manager will encompass many of the duties currently being performed by volunteers such as the treasurer.
RECOMMENDATION:
The Court considered the written and oral submissions of both parties.
The Court accepts that the Credit Union has the right to recruit a manager to run the office if it feels it to be appropriate. However, the Court notes the employer's commitment to consider internal applicants on their merits and would expect that their experience would be given due consideration.
On the pay scales issue the Court recommends that the Union accept the pay structure proposed by the Board, specifically for these two employees.
However, the Court further recommends that the two employees be assimilated onto the pay structure from July, 1996.
Signed on behalf of the Labour Court
Finbarr Flood
23rd December, 1996______________________
D.G./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.