FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DAA SHANNON AIRPORT - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Claim for revised pay scale.
BACKGROUND:
2. The Dublin Airport Authority (DAA) Shared Services Centre (SSC) was established in 2002. The service is located at Shannon Airport. Its primary function is to provide effective and efficient centralised financial and other transaction processing services to Dublin, Shannon and Cork airports using the latest technology and best practice processes.
As of November 2007 the SSC has been operational for more than five and a half years and currently employs 34 staff of which 24 were recruited externally and 10 were recruited from other areas of the Company. All 24 external recruits have been paid on the new scale. The other 10 who transferred from other parts of the Company are paid either on a red circled basis or opted to be placed on the SSC scales.
The issue before the Court is a claim by the Union for a revised and agreed pay scale for newer employees of the SSC at Shannon Airport.
The Union position is that the appropriate benchmarks are the scales applying elsewhere in public sector employments. The Union is seeking a 9 point scale which would benefit employees with longer service.
Management rejected the Union's claim and told them that their comparitors differed greatly from the private sector comparitors used by the Company.
The dispute could not be resolved at local level and was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour court on the 14th May, 2007, in accordance with Section 26(1) of the Industrial Relations Act,1990. A Labour Court hearing took place on the 27th November, 2007.
UNION'S ARGUMENTS:
3. 1. The Union states that they have co-operated fully with the implementation from concept to reality of the SSC. The Union and it's members gave the Company the time as requested to bed down the SCC and allow fixed term contract staff develop before pursuing it's claim.
2. The Union maintains that they have compared in their claim to a similar like for like semi state companies and service providers in the public service.
3. The Union maintains also that the Company is in breach of the original agreement by introducing a salary scale without agreement.
COMPANY'S ARGUMENTS:
4. 1.The Company claims that the SSC was a new operation and this entitled the Company to devise appropriate pay scales for it.
2. The Company maintains that the SSC team members annual remuneration package is competitive when benchmarked against equivalent positions in other commercial organisations.
3. The Company has committed to review SSC pay scales based on regular comparisons with external benchmarks. In addition, all rates are increased in line with increases provided for under national wage agreements.
RECOMMENDATION:
The matter before the Court concerns the Union’s claim for the introduction of an agreed pay scale for newer employees of the Shared Services Centre at Shannon Airport. The Centre was set up in 2002, existing employees were transferred over on red-circled rates and management introduced a four-point scale, currently ranging from €27,355.78 - €31,700.67 for new employees. As there was no agreed scale, the Union submitted a claim for a 9-point scale ranging €27,355.78 to €41,943.89 effective from 1st October 2007, with retrospective adjustments back to 1st January 2004 and a lead in payment of €2,500.
The Union submitted that the appropriate benchmarks for a new scale were those applying elsewhere in public sector employments, whereas Management maintained that the scale in place had been benchmarked against comparable type operations and best practice and took account of its key principles of cost effectiveness and savings. The remuneration package also includes a performance related element whereby staff members can earn an additional amount (up to 10% of basic salary) based on performance against agreed objectives.
In addition to the pay claim, the Union expressed their dissatisfaction with the operation of the performance related element of pay and sought further discussions on the scheme.
Having considered the position of both sides, the Court recommends that a new scale should be introduced with the following points:
- €27,355
€28,562
€29,769
€31,700
€33,631
€35,562
The Court recommends that this scale should be deemed to be inclusive of three phases of “Towards 2016”, however, the Court recommends that it should be paid without “Towards 2016” adjustment retrospective to January 2007. The final phase of “Towards 2016” - 2.5%, should be applied to the above scale from 1st April 2008.
Furthermore, the Court recommends that the Company should provide greater transparency and clarity on the performance related element of pay and provide feedback in terms of individual achievements levels. The Court does not recommend in favour of a lead in payment.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
11th December, 2007______________________
MG.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.