FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ARCON MINES (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Pierce Worker Member: Mr Nash |
1. Rate of pay.
BACKGROUND:
2. The Company operates a lead/zinc mine at Galmoy, Co. Kilkenny and the workers are employed there as maintenance craftworkers.
The mine opened seven years ago and the Company has been operating on the basis of in-house pay agreements. The last pay agreement with the TEEU expired in May 2002. A pay freeze followed for all grades due to trading difficulties. However, due to recent recovery in the price of the product, trading performances have improved and the Union is pursuing a pay increase. The Union are requesting that the workers receive a rate similar to craftspeople within the Company and to the craftspeople within the industry locally.
The Company offered increases in line with those recently agreed with miners represented by SIPTU (5 % phased over 16 months ending April, 2005 and a gainsharing scheme which provides for payment of various levels of lump sums on achievement of agreed targets). This was rejected by the TEEU.
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 22nd November, 2004 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 3rd March, 2005.
UNION'S ARGUMENTS:
3.1 The offer put forward by the Company in November, 2004 was seriously out of line with amounts paid to similar craftspeople in the Company and in another Mine in the area. The Offer was put to ballot, and was overwhelmingly rejected by the workers.
2. Electrical and Mechanical craftspeople in a similar mine in the area are paid a rate of €16.30 per hour basic.
3. Most workers within the Irish economy would have received increases in excess of 20%.
COMPANY'S ARGUMENTS:
4.1 The Company has operated at a loss throughout its history and is fortunate that it has been able to avoid any job losses.
2. The Company argues that the pay and conditions of TEEU workers are favourable and the earnings package available to craftsmen is excellent.
3. The Company has put forward a package that included a basic pay increase and a Gain Share scheme with the opportunity to have a cumulative basic pay increase of 5.08% over 16 months, and the opportunity to earn up to a further 17% of basic pay with the Gainshare scheme.
4. The increase of basic pay by the magnitude requested by the Union would result in repercussive claims and have a further knock-on effect that would result in a financial drain on the Company that it might not be able to survive.
RECOMMENDATION:
In the view of the Court, the craft rate in this employment is out of line with industry and general craft rates and also with rates internally.
The Court, having taken account of the circumstances prevailing in this employment, recommends as follows:
- The Craft rate of €12.60 p.h. be increased to €13.80 p.h. with effect from 1st January 2005.
- The rate be further increased to €15.00 p.h. with effect from 1st July, 2005.
- The rate be increased to €16.20 p.h. with effect from 1st January, 2006.
- The two-phase lump sum of €1,000 paid to other groups should also be paid to this group of TEEU members
- Gainsharing should apply to this group, from the same dates as other groups.
- The overall pay and earnings of TEEU craftsmen should be jointly reviewed by the parties no later than 1st June, 2006.
Signed on behalf of the Labour Court
Raymond McGee
1st April, 2005______________________
JBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jackie Byrne, Court Secretary.