Labour Court Database __________________________________________________________________________________ File Number: CD95679 Case Number: LCR15065 Section / Act: S26(1) Parties: ROADSTONE COMPANIES - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;AUTOMOBILE GENERAL ENGINEERING AND MECHANICAL OPERATIVE UNION |
Hearing arising from Labour Court Recommendation LCR14770 concerning the implementation of an improved sick pay scheme.
Recommendation:
The Court, having considered all of the matters raised by the
parties in their oral and written submissions, recommends that the
proposals for the sick pay scheme be amended as follows:-
1. That the benefit be increased to £48 per week (excluding the
first three days of each illness).
2. That the maximum benefit period be increased to 14 weeks in
any 12 month period.
The parties should clearly understand that the operation of the
sick pay scheme can only be continued, and employees protected
when ill, where both parties ensure that they strictly adhere to
the terms and conditions of the scheme and put in place
arrangements to contain costs. If the operation of the scheme is
to be successful and employees' earnings are to be protected at
times of illness, it is imperative that absenteeism is kept to a
minimum. It is recommended that the operation of the scheme be
monitored and any difficulties perceived addressed as quickly as
possible. The scheme in all its aspects should be reviewed on 31
March 1997.
Division: Mr McGrath Mr Pierce Mr Walsh
Text of Document__________________________________________________________________
CD95679 RECOMMENDATION NO. LCR15065
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
ROADSTONE COMPANIES
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
AUTOMOBILE GENERAL ENGINEERING AND MECHANICAL OPERATIVE UNION
SUBJECT:
1. Hearing arising from Labour Court Recommendation LCR14770
concerning the implementation of an improved sick pay scheme.
BACKGROUND:
2. The dispute concerns the introduction of an improved sick pay
scheme for approximately 480 craft and general workers.
Negotiations have been ongoing since 1992 and in May, 1995
the Labour Court recommended:-
"that the parties negotiate an acceptable scheme with a
view to introducing it as soon as possible. The
negotiations to be completed on or before 31st July,
1995.
In these negotiations, the parties should seek to
include mechanisms which will contain costs and
contribute to a reduction in absenteeism levels. The
scheme should be introduced on a trial basis and
monitored to ensure any difficulties are resolved and
that the scheme meets the criteria laid down."
(LCR 14770).
A number of meetings were held under the chairmanship of an
independent mediator, Mr. Stephen Tracey, who issued a
non-binding recommendation on the 18th October, 1995 as
follows:-
Recommendation:
"I recommend to the Parties that they agree to substitute
the present sick pay scheme with the following scheme for
the period up to the 31st March 1997 on a trial basis as
recommended by the Labour Court. The position arising out
of the working of the Scheme to be reviewed in its
entirety at this latter date by the Parties.
Benefits:
A benefit from the Fund of £45 per week for 12
weeks will be paid for certifiable sickness.
(This sum is halfway between the £30 Benefit paid
in the Comparator's scheme and the £60 sought by
the Unions)
Subscription:
£1 per week per worker, matched by the Companies.
Start Up:
The Companies will advance the sum of £5,000 to the
fund to kick start the scheme into viable
operation.
The above are my basic Recommendations, if they are
accepted by the Parties, then it will be necessary to put
in place the proposed rules of the scheme as outlined by
the Company in their draft of the 25th August 1995 and
circulated at the meeting on that day. These can be
suitably amended by agreement where necessary. In this
connection I would suggest that a Working Party be
established to conduct this exercise."
The recommendation was subsequently rejected by both parties
and it was agreed to refer the dispute to the Labour Court in
accordance with Section 26(1) of the Industrial Relations
Act, 1990. The Labour Court investigated the dispute on 9th
January, 1996.
UNIONS' ARGUMENTS:
3.1 Labour Court recommendation LCR14770 found that the existing
sick pay scheme fell far short of schemes in comparable
companies. Management continues to seek to retain the
original scheme or to impose inferior terms if possible.
2 The Mediator's recommendation would substantially reduce the
period of cover from 52 weeks in the current scheme to a
proposed 12 weeks. An average worker would suffer a
short-fall of £30 per week even during the reduced period of
cover.
3 The workers are willing to contribute an eightfold increase
of £1 per week for an improved scheme, both in terms of
duration and extent of protection. The Companies are among
the pivotal employments quoted on the Stock Exchange and it
is not unreasonable to expect that a sufficient sick pay
scheme would be provided for the workers.
COMPANIES' ARGUMENTS:
4.1 The Companies operate in a highly competitive market.
Companies from the North of Ireland, U.K. and Europe have
secured many large contracts in the Republic of Ireland at
extremely competitive prices. They import their own plant,
equipment and labour and can therefore operate at a much
lower cost base.
2 The Companies' terms and conditions of employment are well
ahead of those of the majority of competitors, many of whom
do not operate pension schemes. Employee costs within the
Companies are also significantly higher than their
competitors'.
3 The Companies have continually fulfilled their obligations
under the terms of National Pay Agreements, even in very
difficult years, unlike many other companies. However, costs
must be contained to enable the Companies to remain viable
and to maintain employment into the future.
RECOMMENDATION:
The Court, having considered all of the matters raised by the
parties in their oral and written submissions, recommends that the
proposals for the sick pay scheme be amended as follows:-
1. That the benefit be increased to £48 per week (excluding the
first three days of each illness).
2. That the maximum benefit period be increased to 14 weeks in
any 12 month period.
The parties should clearly understand that the operation of the
sick pay scheme can only be continued, and employees protected
when ill, where both parties ensure that they strictly adhere to
the terms and conditions of the scheme and put in place
arrangements to contain costs. If the operation of the scheme is
to be successful and employees' earnings are to be protected at
times of illness, it is imperative that absenteeism is kept to a
minimum. It is recommended that the operation of the scheme be
monitored and any difficulties perceived addressed as quickly as
possible. The scheme in all its aspects should be reviewed on 31
March 1997.
~
Signed on behalf of the Labour Court
23rd January, 1996 Tom McGrath
D.G./A.K. ---------------
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Ms. Dympna Greene, Court Secretary.