FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DAMOVO IRELAND LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Murphy Worker Member: Mr O'Neill |
1. Hearing arising from Labour Court Recommendation 18160.
BACKGROUND:
2. In April, 2005 a dispute between the parties concerning the company's Change Agenda was the subject of a Labour Court investigation. In LCR18160 the Court recommended, inter alia, as follows:
.................."On acceptance of this recommendation the Court recommends that the parties resume discussions on the measures required by the Company and that those discussions be completed within eight weeks. In the event of final agreement not being reached in that time the matter may be referred back to the Court".
Subsequently the parties entered negotiations but agreement was not reached. On the 27th October, 2005 the Company referred the issues in dispute to the Court for recommendation. The Union was agreeable to the referral. A Court hearing was held on the 8th February, 2006.
UNION'S ARGUMENTS:
3. 1. The Union has put forward proposals on how the pay structure sought by Management can be achieved. There must be a guarantee of no loss of earnings during the transition period. There must be a guarantee of a cost of living increase at least in line with national wage increases. Additional pay related performance awards must be over and above agreed earnings and subsumed into basic pay.
2. All changes into the future must be negotiated and agreed. The workers are concerned about the future of the Company and are willing to embrace change but in so doing they seek protection for their own standard of living.
COMPANY'S ARGUMENTS:
4. 1. The Company is working to a challenging deadline to deliver on the necessary change to make the organisation viable into the future. The Company's business context requires the flexibility and the agreement of staff to respond with speed to changes in the market. The Company cannot continue to operate in an intensely competitive, fast- moving market unless it can achieve the changes outlined in the Change Agenda.
2. The Company has put forward a comprehensive new performance and reward structure which will have benefits for all stakeholders and which will be implemented on a planned, well managed and phased basis.
RECOMMENDATION:
The Court recommends that the Union should agree in principle to the introduction of a performance management system. The parties should then enter a final process of intensive negotiations on all aspects of the Company's Change Agenda. This process should be facilitated by an agreed person (or in the absence of agreement a person nominated by the Court) and should be over a fixed timeframe of not more than six weeks.
At the end of this process the facilitator should report to the Court. The Court will then issue definitive recommendations on all outstanding issues without necessarily convening a further hearing.
Signed on behalf of the Labour Court
Kevin Duffy
16th February, 2006______________________
TOD/BRChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.