FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DSG RETAIL IRELAND LIMITED (CURRYS) (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - MANDATE DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Grier Worker Member: Ms Ni Mhurchu |
1. 1. Pay 2. Grievance and disciplinary procedure.
BACKGROUND:
2. DSG Retail Ireland Limited first traded in December, 1996, and acquired part of the retail assets of Harry Moores in February, 1997. It is an electrical retailer with 14 stores in Ireland and employs 450 workers. Stores are located in Limerick, Dublin, Galway and Waterford and comprise 3 brands i.e. 3 PC World stores, 6 Dixons and 5 Currys stores. The Union claims that the current issue concerns 50 members, a number that the Company disputes.
In July, 2001, the Company received a request from the Union to meet to discuss terms and conditions for employees in the Currys store in Galway. Meetings took place at local level before the dispute was referred to the Labour Relations Commission and a meeting took place in accordance with Code of Practice on Voluntary Dispute Resolution. The Union listed a number of issues it wished to discuss but in the end these were narrowed down to 2 - pay and the grievance and disciplinary procedure. The dispute was referred on to the Labour Court on the 25th of March, 2003, in accordance with Section 26 of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 9th of September, 2003, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Union is seeking the introduction of 2 service related incremental pay scales - a commission scale and a non-commission scale. The Company operates a type of incremental pay scale but the levels of the rates at each point of the scale fall short of the "going rate" in retail.
2. The Union is seeking the introduction of a standard commission system for sales staff as follows:
1.25% on all gross sales
10% on insurance sales
Other major Irish retailers pay out similar figures on gross sales.
3. A Christmas bonus of between one and two weeks' gross wages is the established norm in the Irish retail sector. The Labour Court has recommended in support of this on a number of occasions.
4. The recent Dublin Registered Employment Agreement for the Drapery Trade (details supplied to the Court) should apply to the Company. The introduction of an unsocial hours premia of time plus one half for hours worked between 11.00 p.m. and 8.00 a.m. (excluding Sundays and Public Holidays) would go some way towards compensating workers who have to work late hours.
5. The Company's current staff handbook does not allow for a representative of a trade union unless that trade union is recognised by the Company. It is the Union's view that this does not comply with the Code of Practice on Grievance and Disciplinary Procedures (S.I. No.146 of 2000). The Union has a significant number of members who wish to be represented by it.
COMPANY'S ARGUMENTS:
4. 1. The Company's current pay and compensation package is competitive within the retail sector. It has a range of unique incentive schemes that provide staff with opportunities to earn substantial commission in addition to basic pay.
2. The Company complies in full with the National Wage Agreement. In the last 2 years, the Company has improved the pay terms of its staff substantially.
3. The Company has grievance and disciplinary procedures in place which comply with S.I. No.146 of 2000. If an individual employee wishes to be represented by a trade union official the Company is happy to facilitate them.
RECOMMENDATION:
The Court has considered the submissions made by the employer and the Union, and proceeds to make a recommendation under Section 26(1) of the Industrial Relations Act, 1990, on the outstanding issues which remain unresolved following the Labour Relations Commission involvement.
Accordingly, the Court recommends as follows:-
Pay Scales
The Court notes the Company's pay scales for Sales Staff, Support Staff and Technical Staff and notes that staff have further opportunities to earn over the basic from a number of different schemes. The Court is of the view that the pay is not out of line with similar industries and does not recommend the introduction of two separate scales - commission and non-commission scales - as sought by the Union.
The Court recommends the introduction of a long-service increment on the Sales Staff scale.
The Court notes that the application date of phase two of Sustaining Progress is 19th October, 2003.
The Company pays commission to the majority of staff at a rate of 1% on all sales in excess of personal sales targets. The Court endorses this position and recommends accordingly.
The Union sought the payment of a Christmas Bonus. The Court notes that the Company pays an annual training allowance and a peak season bonus to staff and, therefore, does not recommend concession of the Union's claim.
The Company pays overtime rates of time and one half for Sunday working and double time for time worked on Public Holidays. The Court endorses this position and recommends accordingly.
Grievance and Disciplinary Procedures - Right to Trade Union Representation
The Court recommends that the employer should amend their disciplinary and grievance procedure to conform to the general provisions of the Code of Practice on Grievance and Disciplinary Procedures (S.I. 146 of 2000). Consistent with the code, the Company procedure should provide for Trade Union representation in processing individual grievances and disciplinary matters, where an employee wishes to avail of such representation. The procedure should also provide for the full utilisation of the normal dispute resolution machinery of the State, including the reference of disputes to Conciliation, the Rights Commissioner service and the Court, as appropriate. Similar procedures should be put in place to cover complaints of bullying and harassment.
Signed on behalf of the Labour Court
Caroline Jenkinson
17th October, 2003______________________
CON/MB.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.