FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : ATLAS ALUMINIUM (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Grier Worker Member: Mr O'Neill |
1. Non payment of Sustaining Progress - Phase 2.
BACKGROUND:
2. The dispute relates to the Union's claim on behalf of craftworkers for the payment of Phase 2 of the Sustaining Progress Agreement (SP). The Company maintains that during discussions in 2004 an agreement was reached between the Company and the Union which provided for the payment of all phases of SP and that no further payments are due under that agreement. The Union rejected the Company's claim. Discussions at local level were not successful and following a ballot of the Union's membership, industrial action took place on the 8th May, 2006. It was suspended on the 12th May, 2006, following the intervention of the Labour Relations Commission. A conciliation conference was held but agreement was not reached. The dispute was referred to the Labour Court on the 12th May, 2006 in accordance with Section 20(2) of the Industrial Relations Act, 1969. Both parties agreed to be bound by the Court's recommendation. A Court hearing was held on the 26th May, 2006.
UNION'S ARGUMENTS:
3. 1. The Agreement of 2004 included the payment of the two 2% increases under Phase 1 of SP. There was no reference to Phase 2 in the discussions that took place at that time. There was no question of any increases being paid under Phase 2.
2. The Company paid the increases under Phase 2 to members of another Union, following the issue of a Labour Court recommendation in December, 2005 (LCR 18436 refers).
3. The Union is seeking the payment of the Phase 2 increases from the due dates.
COMPANY'S ARGUMENTS:
4. 1. The Agreement of 2004 provided for maximum increases of 24.85% for craftworkes when compared to 12.5% that was due under SP 1and 2. Such benefits outweigh the increases that other workers in the Company received over the course of the SP Agreement.
2. The Agreement of 2004 states that "all entitlements under the SP Programme are now exhausted". The Union unanimously accepted the Agreement of 2004, that secured for the majority of its members increase over and above the terms of SP. The Company has consistently confirmed this position to the Union.
RECOMMENDATION:
The case before the Court under Section 20(2) of the Industrial Relations Act, 1969 relates to an interpretation of the wording of an agreement reached between the parties on 25th November 2004, in relation to the payment/non-payment of Sustaining Progress II.
The Company maintained that the agreement reached and accepted by the Union on behalf of the members exhausted all entitlements due under the Sustaining Progress Agreement, i.e. both Parts I and II.
Whereas, the Union held the view that the agreement only involved Sustaining Progress Part I and that no payments under Sustaining Progress Part II have been made by the Company. Consequently, the Union sought application of Sustaining Progress Phase II from the due dates.
The Court notes that the details of the agreement state that it will expire on 1st January 2006; that the Union in a private letter, confirmed that all entitlements under the programme for Sustaining Progress were exhausted, and that there would be no cost increasing claims made on the Company during the lifetime of the agreement.
No evidence has been produced by either side to uphold their respective positions. Therefore the Court must interpret the agreement based on the submissions of both parties.
Having considered the matter, the Court interprets the agreement to exclude the Union submitting any cost increasing claims on the Company during the period from 1st October 2004 up to 1st January 2006. Therefore, the Court cannot find in favour of the Union’s claim for the application of Sustaining Progress Phase II to take effect during this period. However, the Court is of the view that the application of Sustaining Progress Phase II increases may commence with effect from 1st January 2006 for a period of 18 months.
This decision of the Court is brought under Section 20(2) of the Industrial Relations Act, 1969 and is binding on both parties.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
1st June, 2006______________________
TODDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.