FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DROGHEDA OMNIPLEX (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Keogh Worker Member: Mr O'Neill |
1. Dispute concerning rates of pay.
BACKGROUND:
2. The Drogheda Omniplex Cinemas consist of two sites the Boyne and the Abbey. The total number of employees in the Boyne Cinema is 14 (4 full time and 10 part-time). The Abbey employs 6 workers. Workers at the Boyne Cinema are paid £3.16 per hour. Workers at the Abbey are paid at a rate of £7.50 per show. The Union's claim first submitted in July, 1997 is for a minimum rate of £5.00 per hour. Management rejected the claim. The dispute was referred to the Labour Relations Commission and a conciliation conference was held on the 6th of October, 1998. At conciliation the Company offered to increase the basic pay from its present rate to the rate applicable in Clonmel and Tralee (£3.35 to incorporate phase 2 of Partnership 2000). The offer was rejected. Further agreement was not possible and the dispute was referred to the Labour Court by the Labour Relations Commission on the 22nd of October, 1998. A Court hearing was held on the 25th of February, 1999, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
1. The majority of the workers only work 20 - 30 hours per week. The Union's claim therefore, is not excessive and will not impose a significant cost on the Company. The work is spread over a seven day period and no premium is paid for working the unsociable hours.
2. The Company's claim that it has an agreement with the Union on the hourly rates in other areas is incorrect, the Clonmel agreement simply stated that wage rates would be adjusted annually in line with wage agreements.
3. The Union's request for a comparison with Dublin rates, which are the only rates that have been properly negotiated, is a fair request.
4. The claim is justified in view of the current low rates (£120.12 for a 39 hour week) being paid and should be allowed under Partnership 2000 as it is the first time that these workers have ever negotiated their wage rates.
COMPANY'S ARGUMENTS:
1. The claim is a cost increasing one and is precluded under Partnership 2000. The Company is committed to honouring the full terms of this agreement.
2. The Omniplex site came about as a result of the conversion of old cinema buildings. The costs of operations associated with upgrading these facilities are substantially higher than any other cinemas owned by the Company. In order to absorb the costs of the claim they would need to be clawed back in some way e.g. increase admission prices. In the present environment, levels of turnover and numbers of patrons using the cinema complex would suggest that this is not a viable option. The Company will incur additional costs in the form of Sunday premium under the Organisation of Working Time Act.
3. The claim could have repercussive effects in the other 17 sites which the Company operates.
4. The comparisons with the Dublin cinemas and other larger towns are not valid in view of their significantly larger turnover. The Drogheda Omniplex cost structure must reflect local trading circumstances and must be compared with like.
5. The Company is prepared to increase the basic rate of pay to the rate applicable in Clonmel and Tralee (£3.35 to incorporate phase 2 of Partnership 2000). This represents a 6% increase and the Company is prepared to apply this 6% increase to the hourly show rate in the Abbey).
RECOMMENDATION:
The Court, having considered the written and oral submissions made by the parties recommends that the Company offer to align the rates for this group with the rates in Clonmel and Tralee be accepted. The Court given the original date of the claim recommends that the increase be applied from the 1st of January, 1998 i.e. the first phase of Partnership 2000.
The Court recommends that the show rate be increased by the relevant percentages.
Signed on behalf of the Labour Court
Finbarr Flood
11th March, 1999.______________________
TOD/BCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.