FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TECH INDUSTRIES LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Pierce Worker Member: Mr Rorke |
1. Payment of 3% under the Programme for Economic and Social Progress.
BACKGROUND:
2. The claim by the Union is on behalf of its craft members for payment of 3% under the Programme for Economic and Social Progress (PESP). The claim was first made in May, 1993 and the Union is seeking retrospection to 1993.
The Union claims that in 1994, an agreement was reached whereby the Company would pay the 3% in exchange for a change in the number of flexi meal breaks (from 5 to 2), and a downsizing of the maintenance workforce.
In December, 1998, the Company issued a discussion document of 10 items (details supplied to the Court) to the Union. This was similar to a document issued to SIPTU, which represents 100 workers in the Company, in November, 1998. SIPTU accepted the proposals in January, 1999. In March, 1999, the Union sought full retrospection of the 3% to March, 1993. The Company advised that cost-offsetting measures would be sought, as with SIPTU. The Union argues that many of the 10 items listed had already been given by the workers.
On the 25th of March, the Union sought the following:-
1. Full retrospection of the 3% PESP local bargaining element to 1st March, 1993.
2. Increase in basic rate to £330 (currently £307).
3. All increases in Partnership 2000 to be honoured.
4. Summer bonus of 1 week's pay.
5. Christmas bonus of 1 week's pay (currently paid).
6. Tool allowance of £200 backdated to 1994.
The Company offered the same package as SIPTU received:-
1. Payment of 3% PESP reference March, 1999.
2. A consolidation of the summer bonus at £2.00 per week from July, 1999.
3. Payment of 2% local bargaining element of Partnership 2000 will depend on Company performance.
Furthermore, the Company offered to increase the tool allowance to £80.00 per annum and this would be indexed linked.
The Union rejected the offer and the dispute was referred to the Labour Relations Commission. A conciliation conference took place on the 25th of May, 1999. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 30th of June, 1999, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 3rd of November, 1999, in Waterford.
UNION'S ARGUMENTS:
3. 1. The workers have been entitled to the 3% PESP payment since 1993, as they agreed to the change in the flexi breaks and the downsizing of the maintenance workforce. The workers also accepted pay path at the time.
2. The Company pleaded inability to pay the 3% in 1993, but has been able to pay all other increases under the National Agreements. The retrospection to 1993 would only apply to 2 of the 5 workers involved.
3. In January, 1999, the Company paid the SIPTU production workers the 3% in return for far fewer measures than were given by the Union workers.
COMPANY'S ARGUMENTS:
4. 1. The 3% local bargaining clause of the PESP states that "negotiations should only take place on new arrangements involving future change." There is no suggestion that concessions agreed to in the past would be part of the bargaining.
2. Conceding the Union's claim would have a knock-on effect with the SIPTU workers.
3. The Company is currently sustaining trading losses but has paid all parts of Partnership 2000, with the exception of the 2% local bargaining element. It cannot afford to pay more than the offer it made to the Union in January, 1999.
RECOMMENDATION:
The Court has given careful consideration to the positions put forward by both sides, and recommends that, due to the absence of any written documentation on commitments allegedly given in 1993, the Company's offer should now be amended as follows:-
- 3% to be backdated to 1st January, 1999,
- tool money allowance should be increased to £100 per annum from January, 1999, and should be indexed linked.
Signed on behalf of the Labour Court
Caroline Jenkinson
19th November, 1999______________________
C.O'N./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.