FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : METAL POWDERS INTERNATIONAL LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Mr Rorke |
1. Introduction of cashless pay.
BACKGROUND:
2. The Company employs sixty-four people at its factory in Tallaght, Dublin 24. It produces welding products which are used in the maintenance and repair business and are exported all over the world. The Company is in operation since 1966.
It wants to introduce payment of wages by credit transfer following an armed robbery at the plant in 1988. The Union has no objection in principle to the proposed changes but is seeking the following concessions:-
(a) a "once off" payment of £500 for all employees, and
(b) the Company to facilitate a small number of workers (6) who wish to continue being paid in cash.
The Company is prepared to facilitate those workers who want to continue to be paid in cash and also to pay compensation of £300.00 to all workers except new workers who went on paypath on joining the Company.
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 21st October, 1996.
No agreement could be reached at conciliation and it was agreed to refer the dispute to the Labour Court under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 15th January, 1997.
UNION'S ARGUMENTS:
3. 1. The Company is in breach of the Union/Company agreement which provides for payment of wages by cash for hourly paid employees. All new employees have been put on credit transfer without consultation.
2. The Union has no objection in principle to credit/transfer payments.
3. Those employees who wish to continue to be paid in cash should be facilitated.
4. The Union is seeking compensation of £500 for all employees including those who were put on paypath on joining the Company.
COMPANY'S ARGUMENTS:
4. 1. The Company's offer of £300 compensation is very reasonable and should be accepted by the employees concerned.
2. The compensation will not apply to new employees.
3. As a result of an armed robbery at the plant it is essential for safety reasons that the Company changes to a non-cash payment system.
RECOMMENDATION:
The Court recommends that the Company pay compensation of £350 to the individuals who transfer.
In the case of the new Employee the Court notes the Company's intention to address this issue.
Signed on behalf of the Labour Court
Finbarr Flood
23rd January, 1997______________________
L.W./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.