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 : WEXFORD VIKING GLASS LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr O'Neill |
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 issues in dispute concern a number of workers, including production operatives fitters and drivers, employed by the Company who are union members as follows:
Hourly rates of pay and pay scales
Sick pay scheme
Pension scheme
The Union sought a meeting with Management to discuss these issues. The Company response was that it dealt directly with the employees. 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 Dispute Resolution (S.I .76 of 2004). Both parties engaged in the process but agreement was not reached. The dispute was referred to the Labour Court in accordance with Section 2 of the Industrial Relations (Amendment) Act, 2001, as amended by the Industrial Relations (Miscellaneous Provisions) Act, 2004. A Court hearing was held on the 13th April, 2006.
UNION'S ARGUMENTS:
3. 1.Pay: The lack of clarity in pay structures as operated by the Company has led to confusion and annoyance amongst workers . There are a number of anomalies currently where workers with similar service, doing similar work, are on different rates of pay. The Union has rejected the Company pay structure both in terms of the rates of pay and duration of scales. The Union's claim is as follows;
| Service | Transport | Fitters | Cutters | General Operatives |  |
| | | | | |
| +3 years | €13.00 | €15.33 | €13.00 | €11.00 | |
| +2 years | €11.80 | €15.33 | €11.80 | €10.10 | |
| +1 year | €10.50 | €14.83 | €10.50 | €9.30 | |
| After 6 months | €9.25 | €13.48 | €9.25 | €8.50 | |
| Probation | €8.75 | | €8.75 | €8.00 | |
2. Sick Pay. The Union is seeking the introduction of a Sick Pay Scheme that reflects industry norms i.e. up to six weeks' cover.
3. Pension Scheme. The Union is seeking the introduction of a Pension Scheme. The Company's proposal to consider making a PRSA contribution from mid 2007 is acceptable.
.
COMPANY'S ARGUMENTS:
4. 1.Pay.The Company put the following pay scales in place.
| Transport | Fitters | Cutters | General Operatives |
| Probation | €8.75 | €8.50 | €8.00 | €7.65 |
| Year 1 | €9.25 | €9.00 | €8.75 | €8.00 |
| Year 2 | €9.75 | €10.00 | €9.50 | €8.50 |
| Year 3 | €10.25 | €11.00 | €10.00 | €9.00 |
| Year 4 | €10.75 | €12.00 | €11.00 | €9.50 |
| Year 5 | €11.50 | €12.50 | €12.00 | €10.00 |
Many existing employees exceed these rates and will hold them on a ''personal-to -holder'' basis. Employees have been assimilated onto these scales by way of movement to the point of the scale immediately above the value of their current rate. The Company believes that these rates are very competitive in relation to the rates of pay in the area and by comparison to other companies in the same business in Ireland.
2. Sick Pay. The Company committed to the following scheme from 1st April, 2006:
Service Duration of Benefit
0-1 year 0
1-2 years 5 days benefit
2-3 years 10 days benefit
3-4 years 15 days benefit
4 years+ 20 days benefit
No payment for first three days.
3. Pension. The Company has a PRSA in place and will consider a contribution to the scheme for all contributing employees from mid-2007.
RECOMMENDATION:
This dispute was referred to the Court pursuant to Section 2(1) of the Industrial Relations (Amendment) 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.
This dispute has been referred following the failure of the parties to reach agreement in relation to the matters at issue at the Labour Relations Commission under the Enhanced Code of Practice on Voluntary Disputes Resolution (S.I. No. 76 of 2004).
The Court has taken careful account of the submissions of the parties in their written and oral presentations. Section 5(2) of the Act provides that a Recommendation made by the Court shall not provide for arrangements for collective bargaining. Subject only to that restriction the Court is required to give its opinion on the matter under investigation and, where appropriate, its view as to the action, which should be taken, having regard to the terms and conditions of employment, in the employment concerned.
Utilising the provisions of S.I. No. 76 of 2004 the Union, on behalf of its members in the Company, submitted a list of claims to the Labour Relations Commission. Following discussions at the Advisory Service, a number of issues were resolved and the remaining issues were referred to the Court :- hourly rates of pay, pay scales, sick pay scheme and pension scheme.
Having considered the views of the parties expressed in their oral and written submissions, the Court recommends, as follows: -
Hourly Rates Of Pay and Pay Scales
The Court recommends that the current rates be adjusted as follows:-
Transport Fitters Cutters GO’s
During Probation : €8.75 €8.50 €8.00 €7.65
(6 months)
12 months thereafter: €9.35 €9.10 €8.85 €8.10
12 months thereafter: €9.95 €10.20 €9.70 €8.70
12 months thereafter: €10.55 €11.30 €10.30 €9.30
12 months thereafter: €11.15 €12.40 €11.40 €9.90
12 months thereafter: €12.00 €13.00 €12.50 €10.50
These rates will be further increased in line with the provisions of any new wage agreement agreed at national level with effect from 1st April, 2006.
Sick Pay Scheme
The Court recommends acceptance the Company’s offer to introduce a sick pay scheme made at the Advisory Service. The offer was outlined, as follows:
Service Duration of Benefit
0 – 1 year no benefit
1 - 2 years 5 days benefit
2 - 3 years 10 days benefit
3 - 4 years 15 years benefit
4 + years 20 days benefit
No payment for the first three days of illness, thereafter, net pay less social welfare benefit will apply. Furthermore, the Court recommends that medical certification must be submitted to the Company after three days' illness and on a weekly basis thereafter. Employees should ensure that the Company is notified of any absence within one hour of normal starting time.
The Court has reviewed the sick pay document handed in by the Union at the hearing. This document was prepared by the Company and includes many references, which the Court considers are inappropriate, to the application of a sick pay scheme as offered by the Company, and outlined above.
Instead the Court recommends that the Company should apply the recommended terms outlined above in accordance with well recognised norms and practices in the administration of such schemes.
In the event that there is a significant increase in the absenteeism levels as a result of the introduction of the sick pay scheme, then the scheme should be reviewed at that time.
Pension Scheme
The Company has a PRSA in place and has given a commitment that it will consider making employer contributions to the scheme for all contributing employees from mid 2007. The Union informed the Court that this commitment was acceptable to their members. Accordingly, the Court recommends in favour of this commitment in respect of the claim for a pension scheme.
Implementation
The recommendations herein, save where otherwise appears, should be implemented within one month from the date of this Recommendation.
Signed on behalf of the Labour Court
Caroline Jenkinson
28th April 2006______________________
TOD/BRDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.