FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CANTRELL & COCHRANE (IRELAND) LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Keogh Worker Member: Ms Ni Mhurchu |
1. Salaries of Sales Merchandiser and Sales Development staff.
BACKGROUND:
2. The dispute concerns workers employed by the Company as Sales Developers and Merchandisers. The Union also represents 12 Senior Sales Representatives.
A new agreement between the parties "the Sales Change Agreement" was implemented in November, 2000, and signed off in July, 2001. This resulted in a substantial restructuring of the sales function within the Company. The staff concerned moved from a system of incremental salary scales to a system of salary ranges which would be adjusted in accordance with national wage agreements. Individual increases, however, would be performance related and movement within the ranges would be effective from the 1st of January each year.
In June, 2001, the Union sought application of the 2% due under the Programme for Prosperity and Fairness (PPF). The Company's response was that the 2% was already included in the Agreement of 2000. This was rejected by the Union. When the first increases, as per the Agreement, were made in January, 2002, the workers were unhappy with the level of the increases.
The dispute was referred to the Labour Relations Commission and, at the conciliation conference, the Company outlined a new set of proposals which it presented in writing on the 21st of August, 2002, and which included the following:
- A without prejudice 2% increase on basic salary for senior sales, business developer and merchandising staff, effective from date of acceptance.
- An increase of the maximum point of the business developer's salary range to equate with the maximum point of the senior sales representative's salary range.
- An increase on basic salary of €600 for business developers who started with the Company prior to 31st December 1997, effective from date of acceptance.
- An increase on basic salary of €400 for business developers who started with the Company from 1st January 1998, effective from date of acceptance.
- An increase on basic salary of €300 for permanent merchandisers, effective from date of acceptance.
The offer was rejected by the Union which was seeking substantial increases for its members in the merchandising staff, and the retention of the 12 senior sales representative positions. Despite further discussions, the situation has not changed.
It was agreed that the dispute would be referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act. A Labour Court hearing took place on the 15th of January, 2003.
3. 1. Staff participated in the appraisal process with their managers as per the Agreement. However, in January, 2002, they discovered that the overall performance average increase was less than 1%.
2. Payment of the 2% PPF from the 1st of April, 2001, is an absolute minimum requirement
3. The Union believes that the integration of the Sales Development staff into the Senior Sales representative scale is fair, and also the corresponding movement from Sales Development into the 12 Senior Sales positions as opportunities arise.
- COMPANY'S ARGUMENTS:
2. The salary ranges had been adjusted to take account of the 2% PPF increase.
There was also a number of beneficial adjustments made to the terms and conditions of the staff.
3. The Company has proposed to increase the maximum of the Business Developers' salary to equate with the maximum point of the Senior Sales Representatives' salary.
RECOMMENDATION:
Arising from a deal signed in July, 2001, for sales staff in the Company, a number of issues have arisen which are of concern to the employees. The Court is of the view that these difficulties arose due to certain expectations held concerning the method of progression involved in the newly created pay ranges. These ranges involved increases in salaries of 21% to 22% over a period of approximately two years.
The Union indicated its disappointment with the rate of progression within the ranges and with the application of increases, which were held to be below expectation. This has resulted in the current claims on behalf of sales developers and sales merchandisers of between 30% and 50% on the minimum points of the ranges.
The Union has also put forward a claim for the application of 2% increase from 1st April, 2001, arising from the revised PPF agreement. The Company assurances that the pay ranges were increased by 2% to reflect this increase has not been accepted by the Union as a proper application of the increase due.
The Union has also sought the retention of 12 senior sales representative positions and the integration of the Sales Developer scale into the Senior Sales Representatives scale.
In response to these claims, the Company made an offer on 21st August, 2002, which was conditional on a number of concession being made in return.
Having considered the position of both sides, the Court is of the view that the Sales Change agreement needs to be modified to ensure clarity on the central issue of how an employee receives basic pay increases and on how progression can be made up to the maximum of the pay ranges.
The Court notes the Company’s proposal to establish a Joint Working Party to develop the current performance review and reward system, and recommends that the ambiguities referred to should be examined and an agreed time frame should be put in place to enable anexpeditiousresolution of the difficulties identified.
The Court recommends that the Company’s offer of 21st August, 2002, (appendix L of the Company’s submission to the Court) represents a fair and reasonable response to the issues in dispute. Therefore, the Court recommends that the proposals should be accepted by the Union, with the following modifications: -
(i)the offer of 2% increase to each of the sales staff basic salary should be effective from 1st September, 2001.
(ii)the immediate replacement of two senior sales representatives to bring the total number employed to twelve,
(iii)non replacement of senior sales representative through natural attrition in the future.
Signed on behalf of the Labour Court
Caroline Jenkinson
24th January, 2003______________________
CON/MB.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.