Labour Court Database __________________________________________________________________________________ File Number: CD95515 Case Number: LCR15068 Section / Act: S26(1) Parties: GLENEAGLE HOTEL (Represented by THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - and - SERVICE INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
3% local bargaining clause (P.E.S.P.).
Recommendation:
5. Given the case as presented to the Court, the Court considered
that this claim comes within the scope of J.L.C. agreement under
Clause 3 of the P.E.S.P. and therefore rejects the claim.
Division: Mr Flood Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD95515 RECOMMENDATION NO. LCR15068
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: GLENEAGLE HOTEL
(Represented by the Irish Business and Employers' Confederation)
and
SERVICE INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. 3% local bargaining clause (P.E.S.P.).
BACKGROUND:
2. 1. The Gleneagle Hotel Killarney employs a staff of one
hundred in the winter season and one hundred and seventy
at the height of the tourist season.
2. The Union has submitted a claim for payment of Clause 3
of the Programme for Economic and Social Progress (PESP).
The Company rejected the Union's claim.
3. As no agreement was possible between the parties the
dispute was referred to the conciliation service of the
Labour Relations Commission. A conciliation conference
was held on the 26th July, 1994.
4. Some progress was made at conciliation on a number of
outstanding issues. However, prior to the conciliation
conference on 26th July, 1994 the hotel was paying the
rates as outlined under the Hotel Joint Labour Committee
(JLC). At conciliation the Union insisted that the hotel
implement a revised wage structure to be specified under
the "Without Board or Lodgings Column" of the JLC
effective from 1st November, 1994. In addition, the
hotel provided for the introduction of "double time" for
Sunday work on a phased basis. The hotel has made
considerable concessions to the Union and cannot concede
any further cost increasing measures.
5. As no agreement was possible between the parties in
relation to Clause 3 of PESP it was agreed by both sides
to refer the dispute to the Labour Court for
investigation. The dispute was referred to the Labour
Court on 31st August, 1995 in accordance with Section
26(1) of the Industrial Relations Act, 1990. The Court
investigated the dispute on 1st December, 1995.
UNION'S ARGUMENTS:
3. 1. The JLC increased basic terms by .5% in July, 1994 and in
July 1995 it increased them by a further 1%. The Union
wants the balance of 1.5% to be conceded by the hotel
under Clause 3 of PESP.
2. The rates of pay in the hotel are low. The hotel can
afford to concede the 1.5% as sought by the Union in
addition to the 1.5% which forms part of the legal minimum
terms of the JLC for the hotel industry.
3. The Union wants the claim to be made retrospective to the
commencement of the 1995 season.
HOTEL'S ARGUMENTS:
4. 1. The hotel is not an "exceptional" performing company and
is not the type of employer to which Clause 3 of PESP
applies.
2. The hotel's wage costs for 1994/1995 have increased by
£54,000. The increased wage costs as a percentage of
increased turnover is in excess of 33%.
3. The hotel is operating in a very competitive market and
cannot afford to concede this claim. The hotel is not in
a position to pass-on additional costs to its customers.
4. The Hotel Joint Labour Committee agreement to pay .5% in
1994 and 1% in 1995 was in full and final settlement of
Clause 3 of the programme for Economic and Social
Progress.
RECOMMENDATION:
5. Given the case as presented to the Court, the Court considered
that this claim comes within the scope of J.L.C. agreement under
Clause 3 of the P.E.S.P. and therefore rejects the claim.
~
Signed on behalf of the Labour Court
25th January, 1996 Finbarr Flood
L.W./U.S. ---------------
Deputy Chairman
NOTE:
ENQUIRIES CONCERNING THIS RECOMMENDATION SHOULD BE ADDRESSED TO
MR LARRY WISELY, COURT SECRETARY.