FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PDM LTD (REPRESENTED BY MANAGEMENT SUPPORT SERVICES) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Consolidation of monies into basic pay.
BACKGROUND:
2. The Company applies preservatives to telephone and electricity poles, railway sleepers and fences for clients such as Eircom and the Electricity Supply Board.These are processed in batches known as charges. An agreement was reached some years ago which provided that once 19 charges per week were delivered workers would be paid a bonus equivalent to 11.5 hours overtime.
The Union are seeking to have the bonus payment consolidated into the basic rate of pay. Such a consolidation would have benefits for staff in terms of sick pay and pension.
- 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 9th of January, 2004, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 1st of April, 2004.
UNION'S ARGUMENTS:
3. 1. The operation is very successful for the Company due to the wholehearted co-operation of the union members in maximising the charges and the work to finish operation that is involved.
2. The Union contend that the claim is not cost increasing as productivity has been enhanced and staff numbers have reduced due to natural wastage
3. Consolidation of the overtime element into the basic salary structure would allow the employees to benefit with regard to sick pay and pension.
COMPANY'S ARGUMENTS:
4. 1. Concession of this claim would lead to substantial increases in costs. It would be in breach of the terms of the Programme for Prosperity and Fairness.
2. The payment is linked to productivity. It should not form part of the basic salary.
3. The claim is in contravention of the agreement whereby the bonus would be paid only for production in excess of 19 charges per week.
RECOMMENDATION:
Having considered the submissions of the parties the Court recommends that the dispute be resolved on the basis of reinstating the offer to improve the sick-pay scheme made at conciliation and, in addition, incorporating 50% of the bonus into pensionable pay. The Court does not recommend incorporation of the bonus in basic pay for the purpose of calculating overtime.
Signed on behalf of the Labour Court
Kevin Duffy
13th May, 2004______________________
MG.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.