FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUNNES STORES - AND - MANDATE MARINE, PORT AND GENERAL WORKERS' UNION SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Owens Employer Member: Mr Keogh Worker Member: Mr Rorke |
1. Rates of pay for Christmas Sunday trading.
BACKGROUND:
2. The dispute concerns the rate to be paid to staff working on pre-Christmas Sundays. Approximately 7,000 workers are affected by the dispute. The Union claims that a rate of treble time (Tx3) should be paid and that all pre-Christmas Sundays in December should be considered to be "Christmas Sundays". The Company's position is that it is not economically viable for it to pay Tx3 and, accordingly, it will pay only double time (Tx2). The Company is also of the view that only the two Sundays immediately prior to Christmas should be designated as Christmas Sundays.
From the inception of Christmas Sunday trading, the going rate was Tx3. In 1994, Christmas Sunday trading was an issue between the parties and an enabling agreement was reached which provided for the payment of Tx3 for workers employed by the Company pre-October, 1994. In 1995, the matter was again the subject of dispute and the Company closed its outlets on the last 2 Sundays pre-Christmas. For Christmas Sundays in 1996, the Company paid Tx2 to all staff for the last 2 Sundays pre-Christmas. The matter of Christmas Sunday trading was, subsequently, referred to Labour Relations Commission, and was the subject of a conciliation conference on the 14th of February, 1997, at which agreement was not reached. The dispute was referred to the Labour Court, on the 4th of April, 1997, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court carried out its investigation on the 22nd of July, 1997.
UNIONS' ARGUMENTS:
3. 1. Pre-Christmas Sunday trading was introduced in the retail sector from 1985. The terms of agreement reached on the issue of Sunday trading contain the essential element of Tx3. The Company has decided unilaterally to discontinue the payment of a well-established and precedent-based industry rate of Tx3, citing economic reasons.
2. The remuneration package for the majority of staff is inferior to the industry norm and the Company operates on a very competitive wage/turnover percentage. The Company is most successful and profitable and has, generally, regained any short-term loss due to recent trade disputes.
3. Any legitimising of the stance adopted by the Company will have serious implications for the whole retail sector. Already, the actions of the Company have put a strain on the established negotiating structures with the sector.
COMPANY'S ARGUMENTS:
4. 1. The payment of treble time for Christmas Sunday trading is uneconomical and unsustainable. All major retailers have now provided for payment to new staff at rates varying between time and a half and Tx2.
2. The Company has taken enormous steps, with difficult and expensive consequences for all concerned, to protect its competitive position and the jobs of its employees, and it will continue to do so.
3. The Company ceased paying Tx3 after Christmas, 1994 and will not pay it in 1997 or in any other year. The Company's track record in defending its competitive position against current and future competition determine that it must be supported in its resolve not to pay uneconomical rates of Christmas Sunday trading.
RECOMMENDATION:
The Court has considered all the evidence presented by the parties and has examined carefully the background to the dispute and the details of previous agreements on the issue of the rate of pay to be applied for working on what is referred to as Christmas Sundays.
The Court notes the Company's final stated position, i.e., Time x 2 for all. The Court, however, cannot ignore the prior agreement to pay Time x 3 to all employees recruited prior to October, 1994.
In the circumstances, the Court recommends that:-
- (a) the Unions accept the Company's offer of Time x 2 to all employees who work Christmas Sundays;
(b) the Company agrees to compensate those employees who were recruited prior to October, 1994 and who had an expectation of receiving Time x 3 by way of additional holidays to be calculated on the basis of hours worked and the difference between Time x 3 and Time x 2.
- Post-October, 1994:
5 hours worked on Sunday @ Time x 2 = 10 hours' pay
Pre-October, 1994:
5 hours worked on Sunday @ Time x 2 = 10 hours' pay plus 5 hours' leave.
This formula is to be applied retrospectively to the year 1996.
The Court further recommends that the four Sundays before Christmas are designated "Christmas Sundays" for the purpose of this Recommendation.
Signed on behalf of the Labour Court
Evelyn Owens
22nd of August, 1997______________________
M.K./D.T.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.