FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : WEST COUNTY HOTEL, ENNIS (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGrath Employer Member: Mr Keogh Worker Member: Mr O'Neill |
1. Claim by the Union for an increase in the "function" rate.
BACKGROUND:
2. The Union is in dispute with the Company in relation to the "function" rate paid to casual workers. They cover breakfasts, weddings, conferences etc. A "function" rate was agreed some years ago and, having been updated to take account of national wage rounds, this presently stands at £12.65 and £16.64 being paid for Sundays. The Union is claiming a function rate of £20 with a rate of £30 for Sundays and Public Holidays. Retrospection is sought to the date of the claim (January, 1996). Management rejected the claim. The dispute was referred to the Labour Relations Commission and conciliation conferences were held in August 1996, and February and April 1997. No agreement was possible. The dispute was referred to the Labour Court by the Labour Relations Commission on the 12th June, 1997. A Court hearing was held on the 11th September, 1997.
UNION'S ARGUMENTS:
3. 1. Most "turns" are now over 4 hours and often last for 5 hours. While it was reasonable to strike a rate based on a minimum - maximum of 3.4 hours it is not reasonable to retain that rate when the maximum now in fact becomes the minimum time worked and can regularly extend to 5 hours making an hourly rate of £2 to £2.56. The majority of workers involved are experienced waitresses and are being paid well below the J.L.C. rate. Where there is a liability to work an unspecified number of hours, where extension of time may arise only during the shifts, the rate should reflect the flexibility of the workers concerned.
2. Dining-Room and Grill Room times have expanded significantly in recent years.
3. The Union's claim for £20 per function is a totally reasonable one when taking into account the length of "turns" and the unpredictability of the time to be worked. The Sunday/Public Holiday rate should be £30.
4. The Hotel business is booming. The Company can afford to concede the claim to these front-line staff who most immediately represent the hotel to its customers.
5. With the bulk of genuinely "casual" staff returning to school/college the number of available staff will decrease and therefore the number of hours will once again extend.
COMPANY'S ARGUMENTS:
4. 1. In 1992 the Company and the Union reached agreement on the "function" rate. The "function" rate is not based on an hourly rate. The Company has adhered to the agreement and applied the national wage round increases. The Union's claim is cost-increasing and is precluded under the Programme for Competitiveness and Work and Partnership 2000.
2. The Company is not in breach of the JLC. On the basis of an average 4 hour function and taking into account the provisions of the JLC the following scale would apply based on a full year's service:
Year 1 2.13 hourly 8.52 function
Year 2 2.49 hourly 9.96 function
Year 3 2.69 hourly 10.76 function
Year 4 3.64 hourly 14.56 function
This would amount to an average "function" rate of £10.95 compared to the average rate paid of £12.65.
Under the provisions of the JLC the Sunday premium would not apply, except where employees work a 78 hour fortnight. Notwithstanding, the 1992 Agreement provided for a higher Sunday Function Rate currently £16.64. The Company would continue to pay this premium.
3. The Company operates in an extremely competitive market. The prices gained for functions is under constant downward pressure and the Company is competing for business against low-cost operations. Labour costs represent 31% of turnover and, therefore, even a marginal increase has a significant adverse impact.
4. The existing function rates of £12.65 and £16.64 are comparable with the norms in the industry. The duration of functions has not increased significantly. The Hotel's major competitor pays a function rate of £12 across the board regardless of the day of the week. The Company cannot afford to operate at a further cost disadvantage.
RECOMMENDATION:
The Court having considered all of the views expressed by the parties in their oral and written submissions recommends that the employees here concerned be paid for each hour worked at a rate of pay which is no less favourable than the hourly rate applicable under the Employment Regulation Order for the Hotels Industry.
Signed on behalf of the Labour Court
Tom McGrath
25th September, 1997______________________
T.O'D./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.