FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : LITTLE STEPS LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Keogh Worker Member: Mr O'Neill |
1. (A) Salary increase and (B) Clothing allowance.
BACKGROUND:
2. The Company is contracted by Bank of Ireland to provide a cr�che facility for its employees. The Union has submitted a claim for a salary increase and a clothing allowance on behalf of its members.
The Company rejected the claim and states that it is not in a financial position to meet the claim as the operation is currently losing £18,500 per annum. It claims that its wage structure is comparable to similar establishments providing this type of service.
The Union claims that salaries for cr�che facilities provided by the ESB, RTE, Aer Lingus and UCD are far superior.
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 10th of September, 1998 but no agreement was reached. The dispute was referred to the Labour Court under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 23rd of November, 1998.
UNION'S ARGUMENTS:
3. 1. The Union's claim is in line with the rates of pay being paid for similar operations provided by ESB, Aer Lingus, RTE and Bord Na M�na.
2. The workers concerned provide a high standard of quality childcare service. Their rates of pay should be increased from the 4th of December, 1997.
3. A clothing allowance or uniform should be made available to all cr�che staff.
4. The current level of pay at the cr�che is undermining staff morale.
COMPANY'S ARGUMENTS:
4. 1. The industry is largely unregulated. The rates of pay in the industry vary significantly according to a recent survey undertaken by the National Childcare Nurseries Association.
2. The Company's wage rates are in line with the industry norm.
3. The Company is already running an annual deficit of £18,500 per annum and cannot absorb any further cost increases.
4. Any further cost increases could put the future viability of the cr�che at risk.
RECOMMENDATION:
The almost total lack of reliable information concerning rates of pay and other conditions in similar employments has caused the Court considerable difficulty in recommending an appropriate rate of pay for the childcare workers associated with this claim. Moreover, the sector is largely unregulated and has a low incidence of trade union organisation. Against that background, the Court believes that many of the problems concerning pay and conditions in the sector cannot be effectively addressed on a piece-meal basis and that an industry-wide structure is needed within which these matters could be addressed and resolved.
With regard to the present claim, the Court considers the present 14 point scale inappropriate to this type of employment. The Court recommends that the parties should re-negotiate the pay scale to one of not more than 5 points.
The Court considers that the likely introduction of a Statutory Minimum Wage will impact on this sector and this is a matter which the parties might take into account in the negotiations.
Signed on behalf of the Labour Court
Kevin Duffy
30th November, 1998______________________
L.W./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.