FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : AKZO NOBEL COATINGS (SUTTON) LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SALES, MARKETING AND ADMINISTRATIVE UNION OF IRELAND DIVISION : Chairman: Employer Member: Worker Member: |
1. Incremental salary/additional annual leave.
BACKGROUND:
2. At the end of 1993, Akzo and Nobel Industries merged. In 1994, it was decided to have Crown Berger Ireland (a subsidiary of Nobel Industries) and Akzo Nobel Coatings (Sutton) Limited trade as separate commercial entities. The Company employs 29 workers in Dublin, and 11 workers at other locations.
The Union's claim is twofold. Firstly, it is seeking an incremental salary scale in the range of £16,000 - £25,000 over 10 years. The second part of the claim is for an increase in holiday entitlement.
There are 7 workers (sales representatives) involved in the claim and their salaries and years of service are as follows:
Worker Salary£ Years of service
A 17,500 35
B 17,029 20
C 18,000 20
D 16,400 3
E 17,400 3
F 20,500 4
G 21,500 4
Worker G has 27 days' annual leave. The other workers have 20 days each.
The Union first made its claim in June, 1995. The dispute was referred to the Labour Relations Commission and a conciliation conference took place on 30th January, 1996. As agreement could not be reached, the dispute was referred to the Labour Court on 1st May, 1996, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 16th May, 1996.
UNION'S ARGUMENTS:
3. 1. Incremental Salary
The vast majority of sales representatives in other companies are remunerated by incremental salary scales. The workers concerned are highly skilled, with one of the workers having being employed for 35 years. They are required to work long hours, often in excess of 39 hours per week. A survey of similar type companies showed that the average maximum salary is £24,330 per annum. Worker A, who is 35 years with the Company, still only has a salary of £17,500 per annum, yet the Company quotes an average minimum of £16,325 which applies to new employees. Workers A, B & C in particular should be on a maximum salary of £25,000 per annum.
2. Additional Annual Leave
One of the workers, who is a representative of Akzo in England but works in Ireland, has an annual leave entitlement of 27 days. All other workers have 20 days. When the Union discovered this, the Company stated that the worker's 27 days leave was "red circled" . It is unfair that one worker should have additional annual leave for doing the some work. The other workers should have additional annual leave, if necessary on the basis of service.
COMPANY'S ARGUMENTS:
4. 1. Incremental Salary
The Union's claim for an incremental salary scale is precluded under Clause 6 of the Programme for Competitiveness and Work (PCW). All terms of the national agreements have been honoured by the Company.
2. Workers can achieve additional earnings (up to £5,500 per annum) through the Company's bonus scheme. The principle of rewarding performance in this manner would be undermined by an incremental salary scale. The Company's rates of pay are not out of line with other companies in the industry.
3. Additional Annual Leave
The worker who enjoys an annual leave of 27 days does so on a "red circled" basis. His employment with the Company resulted from a merger and his conditions of employment were "red circled" at the time. Increasing the other workers' annual leave would be cost-increasing and, as such, is precluded under Clause 6 of the PCW.
RECOMMENDATION:
The Court, having considered the oral and written submissions of the parties, accepts that the Company trades independently and has its own cost centres.
Nevertheless, the Court considers that the salesmen here concerned should have a salary scale structure.
Accordingly, the Court makes the following recommendation:-
1. That a salary scale be introduced commencing at £15,500 with a maximum
point of £22,000.
1.1 The employees concerned to be assimilated and progressed on the
scale as follows:-
1. £15,500
2. £17,000
3. £18,000 Employee "D"
4. £19,000 Employees "E", A, B and C
5. £20,000
6. £21,000
7. £22,000 Employee "F"
1.2 Employees A, B and C (35,21 and 20 years' service respectively) to
be progressed up the scale by one increment each nine months.
1.3 The rate of employee "G" should be considered on a person to
holder basis (red circled).
The pay scales to be updated for the future in accordance with pay awards
where they apply.
2. Holidays - The Court does not recommend concession of the claim for
holidays.
The holidays (27 days) applicable to one employee, given the
circumstances, should be on a person to holder basis (red
circled).
Signed on behalf of the Labour Court
Tom McGrath
1st July, 1996______________________
C.O'N/D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.