FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : MAXOL LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Ms Ni Mhurchu |
1. Claim for upgrading.
BACKGROUND:
2. The dispute before the Court concerns the Union's claim for the upgrading of three area sales managers (ASM). The Company employs six area sales managers, two of whom are on a higher grade. The Union argues that the workers concerned do essentially the same job as the sales managers on the higher grade and that as the Company's business/market share has increased it is necessary for the workers concerned to operate at the traditional senior level.
Local level discussions took place at which the Company offered either one upgrade, or alternatively the cost of the upgrade to be used as a pool for an incentive scheme for all area sales managers. Progress could be not made and the matter was referred to the Labour Relations Commission. A conciliation conference took place on the 22nd of July, 1997. As agreement could not be reached the dispute was referred to the Labour Court on the 20th of August, 1997 under Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 29th of October, 1997.
UNION'S ARGUMENTS:
3. 1. The worker's level of responsibility has increased considerably due to the dramatic rise in the Company's share of the market. The size and number of sites now required to be serviced dictates that the workers concerned operate at the traditional senior level.
2. There have been a number of developments in recent years that have impacted on the role of the ASM:-
(1) The number of ASMs has decreased to six from 9/10.
(2) The Company has taken on an additional 80 service stations.
(3) The market has grown more competitive with all four multinationals (ESSO,
Statoil, Shell and Texaco) competing for market share by capital expenditure
on stations and promotions programmes.
3. Each of the four area sales managers cover approximately 25% of the Country with responsibility for 80 customers. They are required to perform at a level far in excess of their counterparts employed by the larger oil companies and are paid a lesser rate of pay.
4. In the past it was possible to allocate work at the two levels between ASM and senior ASM. This is no longer the situation due to the drop in the number of ASMs from 9/10 to six and due to the Company's increased market share it is essential that all ASMs operate at the more senior level.
COMPANY'S ARGUMENTS:
4. 1. The group of area sales managers concerned are hard working, conscientious and co-operative. They are well remunerated and receive an ever increasing level of support and training. Their sales areas have increased in recent years as their numbers have declined. However, the Company has taken steps to adjust their workloads accordingly.
2. There is no automatic entitlement to up-grading and the criteria applied by the Company in the past related to a combination of work application , service and ongoing re-organisation of the sales force. Indeed, one of the individuals already on the higher grade was placed on it in January, 1996.
3. The level of competition in the oil industry has greatly increased in recent years. Two companies have withdrawn from the market (BP and Jet) and one has ceased trading (Ola). There has been one new entrant in the same period - Statoil. However, the imminent arrival of Hypermarket forecourt retailing will accelerate the competitive process resulting in lower volumes and lower margins in the future. Therefore, controlling costs continues to be an absolute imperative.
4. This claim is not valid under the terms of Partnership 2000 and concession of the claim would cause repercussive effects among other grades represented by the Union.
5. The introduction of an Appraisal Scheme was part of a Consultant's Report and pilot appraisals for the sales force are to be completed by the end of October. This Company is open to the possibility of using the Appraisal Scheme as a means of allocating the "Reward Pool" which it has offered as an alternative to up-grading one of the ASMs.
6. The Company has already up-graded one of the group as recently as last year and offered to up-grade another, so that more than half of the entire group will be on the top grade. In addition an extra area sales manager was employed in 1996. The Company has responded favourably to the representations of this group and firmly believes that it should not be asked to go any further for the reasons stated. Therefore, the Company respectfully requests the Court to recommend in its favour.
RECOMMENDATION:
Having considered all the information before it the Court recommends that the Company agree one promotion plus an incentive scheme to the value of £2,500 per annum in settlement of this claim.
Signed on behalf of the Labour Court
Finbarr Flood
20th November, 1997______________________
F.B./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Fran Brennan, Court Secretary.