FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : WILLAMETTE EUROPE LIMITED. (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Keogh Worker Member: Mr O'Neill |
1. Profit sharing / Share options.
BACKGROUND:
2. The Union is seeking the introduction of a profit share/share option scheme as provided for under the terms of Partnership 2000. It claims that the Company is profitable and sees no reason why such a scheme could not be implemented.
The Company rejected the claim. It states that a "Productivity Incentive Scheme" is already in operation. The bonus is paid twice a year and is performanced based.
As no agreement was possible between the parties the dispute was referred to the Labour Relations Commission. Conciliation conferences were held on the 30th January, 2001 and 11th April, 2001 but no agreement was reached. The dispute was referred to the Labour Court on the 12th July, 2001 in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Labour Court investigated the dispute on the 25th September, 2001.
UNION'S ARGUMENTS:
3. 1. The Company is profitable. It is reasonable that the employees should participate in a financial incentive scheme.
2. The Union wants the current level of bonus maintained for the years 2002 and 2003.
3. The pending Capital Investment Programme will see radical operational changes in the Company. There is no reason why a profit sharing/share option scheme could not be implemented.
COMPANY'S ARGUMENTS:
4. 1. The Company is not prepared to engage in discussions on "profit sharing" when there is a Productivity Incentive Scheme already in place.
2. The Company's policy is opposed to the payment of bonuses or profit sharing, both in Ireland and worldwide.
3. National agreements are clear that any development of forms of financial involvement/profit sharing at the level of the enterprise are voluntary. This
is stated in both Partnership 2000 and the P.P.F.
4. The Productivity Incentive Scheme is a form of financial involvement which applies to all employees, and pays out equally to all.
RECOMMENDATION:
The Court recommends that the bonus level achieved for the year 2000 be guaranteed in respect of 2001. The position in respect of 2002 should be reviewed between the parties during the last quarter of 2002, taking into account the degree to which employees adhere to safety standards and co-operate with measures to improve efficiency.
Signed on behalf of the Labour Court
Kevin Duffy
2nd October, 2001______________________
LW/BRDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.