FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : SIAC BUTLERS STEEL LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. Appropriate rate of pay
BACKGROUND:
2. SIAC Butlers Steel (SBS), employing approximately two hundred people in the Laois area, is involved in the steel industry and was recently unionised. The dispute before the Court concerns a claim by the Union for the appropriate rates of pay for its members, employed in various skilled and semi-skilled categories by the Company.
- The Union contends that the current rates of pay are below the norm in the industry and that the system of progressing on the incremental scale is not transparent in that an objective criterion is not applied. The Union is seeking the application of Construction Industry Federation (CIF) hourly rates for its members, retrospectively to August, 2005, and the implementation of reduced incremental scales to apply on an annual basis.
Category Current Rates Claimed Rates
Craft (7 increments) €16.05 €20.39
Skilled (7 increments) €13.19 €16.34
Semi-Skilled (5 increments) €12.78 €15.33
- The Company contends that it is not a member of the CIF and the Union members do not work under the same conditions or in the same industry as workers covered by CIF rates of pay. There are two parts to the business; manufacturing and erection. CIF rates are paid for site construction workers.
- The Company contends that it is not a member of the CIF and the Union members do not work under the same conditions or in the same industry as workers covered by CIF rates of pay. There are two parts to the business; manufacturing and erection. CIF rates are paid for site construction workers.
UNION'S ARGUMENTS:
3. 1. The craft apprenticeship is subject to four years' duration. Skilled pay should be achievable within three years based on knowledge, skill and experience. Semi-skilled pay should be achievable within two years based on knowledge, skill and experience.
2. The current pay structure and its value are not in keeping with acceptable standards within the Industry and this must be resolved. The Company is extremely busy at present with substantial tonnage through the workshop and all employees are being encouraged to work significant levels of overtime.
3. The Company constitutes a newly organised employment and the Union's claim falls within the definition of the Chairman's minute from the national talks that states:Chairman's minute concerning new companies or newly organised employees in employments where no unionisation already exists.Where rates of pay are substantially below levels appropriate to the trade or industry in question, the Labour Court shall not be precluded by the provisions of the pay agreement from making recommendations on the merits of the case.
COMPANY'S ARGUMENTS:
4. 1. The Union's members in SBS are not covered by CIF rates as they do not work in the same industry or under the same conditions as those covered by CIF rates. The Union has failed to make any legitiimate argument to support its claim.
2. The Company is a top payer in the locality and its rates of pay are competitive vis-a-vis other employers in the area. Another unionised company on the same site in a similar manufacturing operation pays its semi-skilled workers €10.70 per hour.
3. The Company is in difficult trading position. Contracts are being lost to competitors from various countries due to their lower costs. To remain competitive and in business, competitive rates, which attract and retain staff, must be paid to allow the Company to tender competitively. The Company has offered an attendance and production bonus to encourage employees to contribute to their own ability to earn extra money in a way which also provides the Company with a means to part-finance the increased costs. The Union's call for CIF rates is unrealistic and takes no account of the Company's industry.
RECOMMENDATION:
Having considered the submissions of the parties, the Court recommends that the following rates of pay should apply with effect from the date of the last company increase i.e. 3rd October 2005. These rates should be inclusive of all the elements contained in the Company's final offer (as amended) including the 2.5% increase due under Sustaining Progress.
Craft €16.30 per hour
Skilled €13.40 per hour
Semi-Skilled €13.00 per hour
Signed on behalf of the Labour Court
Raymond McGee
16th May, 2006______________________
JO'CDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Joanne O'Connor, Court Secretary.