FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : KELLS STAINLESS (REPRESENTED BY MANAGEMENT SUPPORT SERVICES (IRELAND) LIMITED) - AND - AMALGAMATED ENGINEERING AND ELECTRICAL UNION NATIONAL UNION OF SHEET METAL WORKERS OF IRELAND DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Pierce Worker Member: Ms Ni Mhurchu |
1. Consolidation of premium payment into basic pay.
BACKGROUND:
2. The Company manufactures metal cylinders at its plant in Kells, Co. Meath.
The workers are currently receiving a premium of €1.50 per hour which is not part of their basic pay. The dispute before the Court concerns a claim by the Unions on behalf of their members that the premium be consolidated into the basic pay and that an acceptable bonus scheme be introduced.
The dispute could not be resolved at local level and was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 11th of February, 2002, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 5th of April, 2002, the earliest date suitable to the parties.
UNIONS' ARGUMENTS:
3 1. If the premium payment of €1.50 were to be consolidated into basic pay, it would bring the current hourly rate to €13.78 which still would be lower than the rates paid by other similar industries.
2. The premium payment should be consolidated into the basic pay and an acceptable bonus scheme introduced.
COMPANY'S ARGUMENTS:
4. 1. Comparisons cannot be made with non-related industries. Within its own industry, the Company has to remain competitive to secure business.
2. The claim is cost increasing and cannot be conceded.
RECOMMENDATION:
Having considered all aspects of this claim, the Court does not recommend the consolidation of the premium payment into basic pay. Taking account of all phases of the PPF, as the premium payment has not been increased in three years, the Court recommends that it should be increased from €1.50 per hour to €1.75 per hour with effect from 1st April, 2002. The Court further recommends that this premium should be increased in line with wage increases generally following the PPF, while it remains in its present form.
The Court recommends that the Company and the Unions should separately explore the possibility of introducing a new improved bonus scheme to allow for increased productivity/flexibility on a self-financing basis. Any new scheme should allow for the increased premium payment to apply as a fallback payment. On completion of this exercise the parties should then jointly discuss the introduction of such a scheme. This process should take no more than 3 months.
Signed on behalf of the Labour Court
Caroline Jenkinson
18th April, 2002______________________
GB/CCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.