FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : RIVERSDALE NURSING HOME (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr McHenry Worker Member: Mr O'Neill |
1. Dispute concerning reductions in basic pay.
BACKGROUND:
2. On the 21st of October, 1998 the Labour Court investigated a dispute between the parties concerning the pay and public holiday entitlements of various grades of staff. The Court's recommendation (LCR16002) was issued on the 9th of November, 1998. Subsequently the Company sought clarification of the wording of the recommendation with regard to the incremental scale. The Court in its clarification of the 19th of November, 1998 stated that the "eleven year pay scale as per the Company's submission appendix nine" was applicable. The Union claimed that the Company did not apply the scale correctly and that as a result workers suffered a reduction in basic pay. Management rejected the claim. The dispute was referred to the Labour Relations Commission and a conciliation conference was held on the 7th of April, 1999. Agreement was not reached. The dispute was referred to the Labour Court by the Labour Relations Commission on the 12th of April, 1999. A Court hearing was held on the 10th of May, 1999.
UNION'S ARGUMENTS:
3. 1. The incremental scale is a cumbersome one providing for a basic plus percentage progression up to a maximum of eleven years. The basic rate is clearly defined and relates to new workers starting on a basic rate as follows:-
Care Staff - £4.20
Cooks - £5.20
Cleaners - £4.20
Laundry - £4.20
There is no reference to the reduction in the existing basic rate of pay for staff already in the employment. The existing staff at the time of the Labour Court hearing already had a basic higher rate than the rate for new staff.
2. The Company's application of the scale means the reduction in the existing basic pay for current staff to that of new workers. This action is not acceptable to the workers. The Company has incorrectly applied the pay scale to existing staff (details of examples supplied to the Court).
3. Workers accepted the eleven year incremental pay scale on the clear understanding that the basic rate referred to applied to new staff. The workers did not accept a situation which would result in the existing basic rate for current staff being reduced to the same basic rate as applicable to new staff.
4. The Union also seeks the payment of Phase 3 of Partnership 2000 on the basis that this is a cost of living increase already negotiated and agreed at national level.
COMPANY'S ARGUMENTS:
4. 1. Following the Court's clarification of November, 1998 that "the eleven year scale as per the Company's submission appendix nine was applicable" the parties, at local level discussions in December, 1998, agreed on the implementation of the eleven point scale in January, 1999 with retrospection from November, 1998 and 20% of the outstanding public holiday entitlements to be paid before Christmas with the balance due before the 4th of April, 1999 (as per LCR16002).
2. The pay scale as proposed is based on a basic rate (£4.20 for care staff, cleaners, laundry, £5.20 for cooks) with an additional percentage payable for each years service i.e., one year - basic plus 3%, two years - basic plus 7%, three years - basic plus 10% etc. This was clearly explained to all workers.
3. The Company proposal also provides for the application of a percentage in respect of inflation not exceeding 3% per annum. Workers then get the benefit of a 3% rise on April 1st each year along with their relevant incremental scale. The following example illustrates the application of the scale.
A worker at the 6th year of employment receives an
increase of 19% on top of basic, a 3% inflation increase
on the 1st of April each year.
4. LCR16002 has been implemented in full. The Company has correctly applied the eleven point incremental scale. This scale clearly lists the intrinsic basic rates of pay. All workers will receive increases as outlined. The Company does not accept the Union's claim that two separate basic rates apply i.e., one for existing staff and one for new staff.
RECOMMENDATION:
The Union claimed that management had incorrectly applied the incremental pay scale as recommended in Labour Court Recommendation No. 16002. The Court is satisfied that the application of the incremental scale to the base rate as described by management when the 11 year incremental scale was first proposed is the correct application, i.e. the base rate for care staff, cleaners and laundry staff is £4.20 per hour and for cooks is £5.20 per hour. The percentage increases for each point on the scale should be applied to these base rates.
The internal pay review arrangements reflect annual increases of 3%. The Court recommends that at the expiry of Partnership 2000 the pay review arrangements for the future should be considered in the context of the pay agreement prevailing at the time.
Signed on behalf of the Labour Court
Caroline Jenkinson
21st May, 1999______________________
T.O'D./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.