FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ROCHES STORES (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - MANDATE DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Carberry Worker Member: Ms Ni Mhurchu |
1. Ring fencing of commission for Sales Assistants.
BACKGROUND:
2. The Company employs approximately four hundred and fifty staff at its store in Henry Street. Commission of 1.25% of sales is distributed among all non food sales staff each week. Part-time staff received commission on a less favourable basis than the full-time staff. Following the introduction of The Protection of Employees (Part-Time) Act, 2001 the Company agreed to pay existing part-time staff pro rata to the full-time staff. The Company proposed the ring fencing of commission for current staff and that a non commission rate of pay would apply to all new employees.
The Union's claim is that new employees should receive commission of 1.25% on hours worked.
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 8th of May 2003, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 3rd of September 2003, the earliest date suitable to the parties.
COMPANY'S ARGUMENTS:
3. 1. The Company agreed to pay all existing part-time staff commission pro rata to
the full-time staff. This resulted in an additional cost to the Company of €100,000 per year in addition to the normal commission earnings.
2. The proposal to introduce a non commission rate of pay for all new recruits
does not present any difficulty as food sales staff in the store are already on this rate.
3. All new recruits should be placed on a non commission rate of pay.
UNION'S ARGUMENTS:
4. 1. The payment of commission is well established in similar department stores.
2. The introduction of a non commission rate of pay for new recruits will
create industrial relations problems as these employees will be working with employees on a commission rate and carrying out the same work.
3. New recruits should receive commission of 1.25% on hours worked and the status quo relating to existing staff should remain.
RECOMMENDATION:
The claim before the Court arises as a result of the Company's implementation of revised commission payments to part-time staff under The Protection of Employees (Part-Time Work) Act, 2001. Due to the costs involved, the Company sought the introduction of a non-commission rate of pay for future recruits and the ring fencing of commission payments to those currently employed. The Company referred to the particular difficult trading environment while at the same time indicated that it was undergoing major renovation.
Having considered the submissions of both parties, the Court is of the view that it is not the role of the Court to recommend a change in conditions of employment for future recruits due to the costs involved in complying with current legislation.
However, the Court recommends that in the event of the Company having a need to rationalise/restructure as a result of its current position then the parties should enter into negotiations on the matter.
Signed on behalf of the Labour Court
Caroline Jenkinson
16th September 2003______________________
GB/BRDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.