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 : BAYFIELD SUPPLIES LTD (REPRESENTED BY MCNULTY BOYLAN & PARTNERS, SOLICITORS) - AND - MANDATE TRADE UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Murphy Worker Member: Mr O'Neill |
1. Union application under the Industrial Relations (Amendment) Act, 2001, as amended by the Industrial Relations (Miscellaneous Provisions) Act, 2004.
BACKGROUND:
2. The Company operates a chain of stores selling low cost items. It employs approximately ninety workers mostly on a part-time basis. The issues in dispute which concern a number of workers who are union members are as follows:
Rates of Pay
Sunday/Public Holiday Premium.
Sick Pay.
Christmas Bonus.
Pay Slips.
Health and Safety
Redundancy.
The Union wrote to the Company in February, 2005 seeking a meeting to discuss these issues. The Company did not respond. The Company declined to engage at the Labour Relations Commission under the Enhanced Code of Practice on Voluntary Dispute resolution (SI 76 of 2004). Subsequently the Union referred a complaint to the Labour Court under 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 28th July, 2006.
UNION'S ARGUMENTS:
3. 1. The Company's rates of pay are below those of wage rates paid by companies in the same category. The Union is seeking an incremental pay scale with movement on an annual basis, regardless of hours, as follows:
Year 1 €8.08
Year 2 €8.36
Year 3 €8.66
Year 4 €8.90
Year 5 €9.55
Year 6 €10.53
Post of Responsibility + 7.5 % i.e. €11.32
The Union is also seeking a 7.5 % increase on the top point of the scale for Posts of Responsibility.
2. The normal payment for Sundays and Public Holidays is time plus one half for hours worked. The Union is seeking this premium for workers.
3. A Sick Pay Scheme does not exist in the Company and the Union is seeking the establishment of a Sick Pay Scheme of 4 weeks for workers, with part-time workers to be paid on a pro-rata basis. Workers should become eligible for benefit after one year's service.
4. Most organised employments in the Retail Sector pay a Christmas Bonus equal to one weeks' gross pay. The Union is seeking this payment for workers.
5. Workers in the employment have sought pay slips without success. These should be provided as a matter of course.
6. The Union seeks that the Company take steps to provide proper facilities for workers as provide for under health and safety legislation.
7. The norm in redundancy situations that have taken place is for the payment to workers of six weeks' pay per year of service inclusive of statutory entitlements. In the event of the Company closing or laying workers off, the Union is seeking this payment.
COMPANY'S ARGUMENTS:
4. 1. The Company pays workers in excess of the National Minimum Wage and treats its staff well. The Company is experiencing a significant drop in sales and with a substantial increases in costs. It is under severe pressure from the major multiples and anticipates closing a number of outlets in the near future as a result.
2. The Company has implemented a premium of time plus one half in respect of Sunday working.
3. Because of its financial situation the Company is not in a position to introduce a Sick Pay Scheme.
4. The Company is not in a position to pay Christmas Bonus because of its financial situation.
5. The Company will provide pay slips to workers with immediate effect.
6. The Company will comply with its obligations under health and safety legislation.
7. The Company is not in a position to consider the Union's claim in relation to redundancy payments as such a situation does not exist in the Company at this time.
RECOMMENDATION:
This dispute was referred to the Court pursuant to Section 2(1) of the Industrial Relations (Amendment) Act, 2001, as amended(the Act). The Court is satisfied that the conditions specified at Section 2(1) (d) of the Act are fulfilled in this case and that the dispute is properly before the Court for investigation and recommendation.
The Union supplied the Court with information concerning the rates of pay and other conditions of employment which were established by collective bargaining in respect of shop assistants employed in the distributive trade through local town agreements. The veracity of this information was not questioned by the Employer although it did dispute the appropriateness of the comparators relied upon by the Union. Whilst the Court accepts that the Employer in this case is engaged in a different type of retail activity than many of the stores cited by the Union, the rates of pay and conditions quoted by the Union are a reliable indication of what could be regarded as reasonable for the type of work in respect of which the present claims are made.
Having taken account of all relevant considerations the Court recommends as follows:
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% |
Sunday/ Public Holiday Premium.
The Court was advised by the Employer's representative that they have implemented a premium of time-plus-one -half in respect of Sunday working. The Court recommends that the Employer proceed accordingly. This premium should also apply in respect of working on Public Holidays, in addition to statutory entitlements.
Sick Pay.
The Court recommends that the Company introduce a sick pay scheme providing for four weeks sick leave at full pay less social welfare. All sick leave should be covered by a medical certificate. The scheme should apply to all employees who have completed one year's service. The scheme should not operate in respect of the first 3 days of any illness.
Christmas Bonus.
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 employees' average earnings for the time worked in the preceding 13 weeks.
Pay Slips.
The Court recommends that the Employer provide employees with a pay slip in the form required by the Payment of Wages Act, 1991.
Health and Safety.
The Court recommends that the employer comply fully with all statutory requirements relating to safety, health and welfare at work.
Redundancy Payments.
It is noted that this issue does not arise at this time. Accordingly the Court does not consider it appropriate to address the Union's claim for ex-gratia redundancy payments as part of this recommendation.
Implementation.
Save where otherwise appears these recommendations should be implemented within one month of the date of issue.
Signed on behalf of the Labour Court
Kevin Duffy
10th August, 2006______________________
todChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.