FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUBARRY SHOES - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Pierce Worker Member: Mr O'Neill |
1. Rate Of Pay - Interpretation Of Agreement.
BACKGROUND:
2. Dubarry Shoes Limited is involved in the manufacture of shoes at its plant in Ballinasloe. It employs approximately 200 workers. In 1995, agreement was reached between the parties on a revised pay structure for new employees. The Union claims that the arrangement regarding rates for new entrants was for four years and is seeking to have the rates of pay for employees brought into line with the rest of the workforce. Management rejects the Union's claim. Its position is that it was never intended that the lower pay structure would end after four years.
The matter was the subject of a conciliation conference held under the auspices of the Labour Relations Commission. As agreement could not be reached, the dispute was referred to the Labour Court on the 26th of January, 2000 under Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 27th of June, 2000.
UNION'S ARGUMENTS:
3. 1. The subject of pay for new employees has been and remains a contentious issue and a considerable number of new contract employees have left the Company due to low pay.
2. It was always the Union's understanding that the agreement reached in 1995 in relation to rates of pay for new employees was for a period of four years.
3. The Union rejects management's claim that it was never intended that the lower rate of pay would end after four years. The agreement clearly states that it is a "fixed four year programme". In the circumstances, the Union is requesting that the Court acknowledge that the Company is in breach of the 1995 agreement.
COMPANY'S ARGUMENTS:
4. 1. The reasons put forward for the introduction of the lower pay structure in 1995 are still in existence and due to the continuing decline of the footwear industry in Ireland, the structure is actually worse.
2. The new contract employee rate is permanent and an integral part of the future of manufacturing in Dubarry's Ballinasloe plant. It was never intended that the lower pay structure would end after four years. If this was the case, would the 8% wage increase incorporated in the agreement be now withdrawn.
RECOMMENDATION:
The dispute arose as a result of an interpretation of an agreement made in 1995 when a lower rate of pay was introduced for new employees. Disagreement arose over the reference in that agreement to a "fixed four year programme", which was interpreted by the Union as referring to a termination of the lower rates at the end of a four year period. The Court's understanding of the reference to the fixed four years is that it relates to a commitment to a review of the situation plus a commitment to the Union that there would be no adverse effect on rates of pay during that period.
While the Court notes the financial circumstances of the Company, it understands how a situation where employees work alongside other employees who are on higher rates of pay, can lead to unease and feelings of resentment. The Court recommends a bridging of the gap between the old contract rate and the new contract rate.
Accordingly, the Court recommends the introduction of an incremental structure, which will bridge the gap in 6 equal increments for those employees on the new contracts. The Court recommends that as from 1st September, 2000 all new contract employees should be assimilated on to the appropriate point of the incremental scale, taking into account their starting date with the Company (e.g. employee who commenced employment on the 1st November, 1995 should be placed on point 5 of the scale from 1st September, 2000, then on point 6 on 1st November, 2000 and the top point on 1st November, 2001, i.e. the equivalent rate to the old contract rate).
Signed on behalf of the Labour Court
Caroline Jenkinson
28 July, 2000______________________
FB/CCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Fran Brennan, Court Secretary.