FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 S2(1), INDUSTRIAL RELATIONS (AMENDMENT) ACT, 2001, AS AMENDED BY THE INDUSTRIAL RELATIONS(MISCELLANEOUS PROVISIONS) ACT, 2004 PARTIES : BRACKERNAGH LIMITED T/A CROUGHAN'S SUPER VALU, BALLINASLOE (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Referral from the Labour Relations Commission under the Industrial Relations (Amendment) Act, 2001, as amended by the Industrial Relations (Miscellaneous Provisions) Act, 2004.
BACKGROUND:
2. The Company is a family run business which it took over as a going concern in September, 2000. The issues in dispute which concern a number of workers who are Union members are as follows;
Pay.
Sunday Premium.
Christmas Bonus.
Sick Pay.
The Company's response to the Union's request for a meeting to discuss those issues is that it deals directly with its workers and does not negotiate with unions. The Union referred the issues in dispute to the Advisory Service of the Labour Relations Commission under the provisions of the Enhanced Code of Practice on Voluntary Disputes Resolution (S.I. 76 of 2004). Both parties participated in the process but agreement was not reached. The dispute was referred to the Labour Court in accordance with Section 2(1) of the Industrial Relations (Amendment) Act, 2001 as amended by the Industrial Relations (Miscellaneous Provisions) Act, 2004. A Court hearing was held on the 31st March, 2006.
UNION'S ARGUMENTS:
3. (i)Pay. There is no incremental pay scale in place in the employment at the moment. There are a number of anomalies in the existing system.The Union is seeking the introduction of a fair incremental pay scale that incorporates the existing rates of pay that currently apply in the Company. The Union's claim is as follows;
Year Rate per Hour
1 €8.00
2 €8.20
3 €8.60
4 €8.90
5 €9.30
6 €9.70
7 €10.10
Chargehand +7.5%
Rate of pay for Supervisors to be 7.5% above the top point of the General Assistants Pay Scale, i.e. €11.28.
(ii)Sunday Premium. The Union is seeking that Sunday Premium be increased to Time +1/2. This is in line with the normal payment made in respect of working within the Retail Trade within employments where collective bargaining exists.
- (iii)Christmas Bonus. The Union is seeking that the Christmas Bonus be increased to the value of one week's average gross pay, averaged over the previous thirteen weeks. This is in line with other organised employments in the Retail Sector.
(iv)Sick Pay Scheme. The Union is seeking that the benefit payable under the current sick pay scheme be increased from three full weeks to four full weeks pay in the calendar year for all its members, part-time and full-time. Part -time workers to be paid on a pro rata basis. The Union is also seeking that workers become eligible for benefit under the scheme after one year's service and not two years as is the case currently.The Union's claim is in line with has been recommended by the Court in similar cases i.e. LCR 18438.
COMPANY'S ARGUMENTS:
4. (i)Pay.The Company's proposal on pay is as follows;
Experienced Adult Worker.
Point 1 €7.96 per hour
Point 2 €8.11 per hour
Point 3 €8.40 per hour
Point 4 €8.61 per hour
Point 5 €8.82 per hour
Position of Responsibility €9.48 per hour (+7.5%)
This proposal would become effective from 16th March, 2006 in line with increases set under the Retail Grocery and Allied Trades JLC. This proposal enables the Company to maintain the entire structure of the JLC rates of pay from point three down to job entrant. However, it did provide for two additional points and maintained the differential of 7.5% for positions of responsibility.
(ii)Sunday Premium.In offering a Sunday Premium of T+1/2 the Company is providing a payment in excess of the minimum provided for under the Retail Grocery and Allied Trades JLC of T+1/3. The request by the Company to have a guarantee from the Union that its two union members who had continued to refuse to work on Sunday, would be available to work on Sundays in the future is not unreasonable
(iii)Christmas Bonus.The Company disputes the Union's claim that the norm within the sector is the payment of one week's pay as a Christmas Bonus. The actual bonuses paid for Christmas 2005, based on service were as follows;
six to twelve months €30
one to two years €50
over two years €150
supervisors €250
These payments were net of tax. The Christmas Bonus paid by the Company is greater than all twelve comparator stores surveyed by the Company. Furthermore, the provision of a Christmas Bonus is not provided for under the Retail Grocery and Allied Trades JLC.
(iv)Sick Pay Scheme.The Company has offered to pay an additional two week's half pay on top of the three weeks full pay provided under the Retail Grocery and Allied Trades JLC. The Company has honestly endeavoured to resolve this issue.This proposal is not only above the JLC provisions but also above the benefit provided in twelve other comparator stores surveyed by the Company.
RECOMMENDATION:
This dispute was referred to the Court pursuant to Section 2(1) of the Industrial Relations Act, 2001 (the Act). The Court is satisfied that the conditions specified at Section 2(1)(a) to 2(1) (d) of the Act are fulfilled in this case and that the dispute is properly before the Court for investigation and recommendation.
Both parties provided the Court with comprehensive information concerning rates of pay and conditions of employment in analogous employments. The Court has had regard to the rates of pay and conditions of employment in all of the enterprises to which it was referred. It appears clear form this information that in many similar employments in the grocery sector, rates of pay and conditions of employment overall are in excess of those prescribed in the Employment Regulation Order for the trade. This appears to be particularly so in those employments where collective bargaining takes place, principally in the case of longer serving employees.
In the circumstances the Court is of the view that the rates of pay and other conditions of employment of those associated with this claim are out of line with appropriate standards and should be adjusted.
The following are the recommendations of the Court.
Pay.
An incremental pay scale should be introduced as follows:
| Year | Rate per Hour |
| 1 | €8.00 |
| 2 | €8.20 |
| 3 | €8.60 |
| 4 | €8.90 |
| 5 | €9.30 |
| 6 | €9.70 |
| 7 | €10.10 |
| Chargehand | +7.5% |
These rates should be effective from 16th March, 2006.
Any member of staff who is currently on a rate of pay in excess of that recommended should retain their current rate on a personal to holder basis and should have that rate adjusted at the same basis as all other employees. Future pay adjustments should have due regard to the terms of national pay agreements.
Sunday Premium
The Court recommends that a Sunday Premium of time-plus-one-half should be paid. Those staff members who currently have a Monday to Friday liability only should continue, as heretofore, to accommodate the Company in working weekends where this is necessary having regard to the exigencies of the business.
Christmas Bonus
It is noted that a Christmas Bonus is already paid to staff on a net basis. The Court recommends that a bonus equal to one week's gross pay at the employee's normal weekly rate be paid at Christmas. Where hours vary (as may be the case with part-time employees) the normal weekly rate should be calculated by reference to the employee's average earnings for the time worked in the preceding 13 weeks.
Sick Pay
It is recommended that the service qualification for sick pay should be reduced to one year. The benefit should be increased to four week's full pay in any 12 month period.
Implementation
Save where it otherwise appears these recommendations should be implemented within one month of the date of issue.
Signed on behalf of the Labour Court
Kevin Duffy
12th April, 2006______________________
TOD/BRChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.