FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : INDEPENDENT NEWSPAPERS LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Carberry Worker Member: Ms Ni Mhurchu |
1. Alleged breach of agreement.
BACKGROUND:
2. The worker concerned commenced employment with the Company in July, 1980 as an Electrician. In October, 1999, a problem arose regarding his colour vision when he could no longer carry out his duties as an Electrician. In September, 2000, an agreement was reached to re-deploy the worker concerned to a clerical grade 3 position on a "red circle" salary. A dispute arose in relation to the worker's sick pay arrangements. The Company states that the sick pay should be based on basic rate and not the enhanced "red circle" rate. The Union states that the Company has breached the agreement by not paying the worker concerned sick pay entitlement based on his "red-circle" salary. The Union's case before the Court is for an interpretation of the agreement.
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 19th 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.
UNION'S ARGUMENTS:
3. 1. The September, 2000, agreement states that " Apart from the "redcircle" salary, I confirm that all other terms and conditions of employment in your redeployed post will be those currently prevailing and applying to the post to which you are redeployed".
2. The worker concerned is paid his normal salary for annual leave, pensions and all other conditions applying in the area.
3. The agreement should be honoured in full by the Company and the worker concerned should receive his normal salary when out sick.
COMPANY'S ARGUMENTS:
4. 1.The current redeployed rates of pay are based on earnings in production roles of which over 80% would have been made up of enormous overtime working, shift differentials and weekend work.
2. In former production roles, workers when out absent through sickness received only the basic rate, as the opportunity was not there to earn overtime or any other premium payments.
3. The sick pay terms applied to the worker concerned are the most appropriate in the circumstances.
RECOMMENDATION:
The parties have asked the Court to adjudicate on the interpretation of an agreement reached between the Company and the claimant concerning a red circling agreement. The Union claims that the Company has breached the agreement by not paying the claimant sick pay entitlement based on his red-circled salary. The agreement states
"Apart from the "Red Circle" salary, I confirm that all other terms and conditions of employment in your redeployed post will be those currently prevailing and applying to the post to which you are redeployed".
The Court interprets this agreement as meaning that in terms of sick pay, the entitlement that should apply is that pertaining to the claimant's redeployed post (currently clerical grade 3). The sick pay scheme applicable to this grade states:
The following payment will be made to employees absent through illness:
(a) the new Basic Salary ( as set out in Clause 6) less Social Welfare for all periods irrespective of duration....................Social Welfare Benefits deducted are those for a single person........
Accordingly, the Court recommends that both parties accept that the agreement should be interpreted as meaning that basic pay for the purposes of sick pay entitlements is not the red circled salary but basic pay as applies to the clerical grade 3 grade.
Signed on behalf of the Labour Court
Caroline Jenkinson
22nd September, 2003______________________
GB/MB.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.