FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : SWEDISH MATCH IRELAND LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SALES MARKETING & ADMIN UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr McHenry Worker Member: Mr O'Neill |
1. 1. Revision of salary scale 2. Abolition of junior scale 3. 39-Hour Working Week 4. Revision of expenses.
BACKGROUND:
2. The Company sells and distributes non-food products to the grocery trade in Ireland. It is a wholly owned subsidiary of Swedish Match A.B.
The Company states that initially the majority of its sales were derived from parent company products, such as matches, lighters, and smoker requisites. However, as the market for these products declined, local management were successful in providing a cost effective distribution service for third party products. By the end of the year 2000 third party products will account for 90% of the Company's business.
The Union submitted a claim as outlined above and states that salary scales for sales representatives employed by the Company need to be adjusted to bring them into line with salaries paid to similar workers in the industry. The Union is seeking the following:-
Salary Scale:
The Union is seeking the abolition of the "junior scale" for new entrants to the Company. Also, the rates of pay generally need to be revised upwards as they are out of line with salesforce salaries elsewhere. The Union is seeking a starting salary of £16,000 per annum with a maximum of £26,500 per annum.
Expenses
The expenses have not been adjusted for some years and require a substantial increase to bring them into line with the industry norm. The Union is seeking an increase in expenses for (1) lunch allowance; (2) telephone allowance; (3) garage allowance.
Hours of Work
The Union is seeking a reduction of the working week for the sales force to a standard 39 hour working week.
The Company rejected the Union's claims.
As no agreement was possible between the parties the dispute was referred to the Labour Relations Commission. A conciliation conference was held on the 10th of November, 1999 but no agreement was reached. The dispute was referred to the Labour Court on the 4th of January, 2000 under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 7th of March, 2000.
Salary Scales
UNION'S ARGUMENTS:
3. 1. The Union is seeking an improvement in the salary scales of sales representatives employed by the Company to bring them into line with the industry norm.
2. The sales staff have contributed significantly to the increase productivity in the Company from 1985 to 1999 when turnover increased from £8 million to £18 million in that period.
COMPANY'S ARGUMENTS:
4. 1. Any increase in costs would have an adverse effect on the Company's labour costs and would put it at a trading disadvantage vis-a-vis its competitors.
2. The claim is cost increasing and is therefore precluded by Clause 6 of Partnership 2000.
39 Hour Working Week
UNION'S ARGUMENTS:
5. 1. The representatives in the Company work approximately 47 hours a week on average which the Union regards as excessive. These hours should be adjusted to a 39 hour week which is the national norm.
COMPANY'S ARGUMENTS:
6. 1. Sales representatives are required to work 40 hours per week in accordance with the terms of their contract of employment. They must be flexible in the performance of their duties given the nature of the job.
REVISION OF EXPENSES:
UNION'S ARGUMENTS:
7. 1. The Union is seeking an increase in the following expenses; (a) Lunch allowance; (b) Telephone allowance and (c) Garage allowance. These rates have not been adjusted for some time and require a substantial increase. Any adjustment should apply from 1st April, 1999.
COMPANY'S ARGUMENTS:
8. 1. The Company are prepared to revise the allowances for the sales representatives, but only from a current date. The Company rejects the claim for retrospection.
RECOMMENDATION:
Having considered the submissions of the parties the Court recommends as follows:-
Revision of Expenses
The Court recommends that the adjustments offered in the rate of expenses be effective from 1st December, 1999.
Standard Working Hours
The Court recommends that the standard contractual working hours of the sales representatives be reduced to 39.
Salary Scales
Having regard to the provisions of clause 6 of the pay agreement associated with Partnership 2000, the Court recommends that the parties explore the possibility of identifying appropriate productivity/flexibility savings so as to address both salary issues referred to the Court, on a non cost increasing basis.
Signed on behalf of the Labour Court
Kevin Duffy
14th March, 2000______________________
L.W./U.S.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.