FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DOSCO LTD IRISH BUSINESS AND EMPLOYERS' CONFEDERATION - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Grier Worker Member: Mr Nash |
1. 1. Inclusion Of O/T In Holiday Pay Calculations 2.Improvement To Sick-Pay Scheme
BACKGROUND:
2. The Claim brought by the Union before the Court is for the inclusion of regular and rostered overtime in holiday pay calculations and for improvements to the current sick pay scheme. The Union believe that the current scheme is out of line with the norms of the industry. In October 2006, the Union raised the issues with the Company. The Company rejected the Union's claims. The Company states that overtime is limited and is excluded from pay calculations for annual leave under the terms of the Organisation of Working Time Act, 1997. An offer was made to improve the sick pay scheme by the Company which included an increase in contributions from both the Company and its workers. This was rejected by the Union.
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 26th April, 2007. A Labour Court hearing took place on the 30th November, 2007.
UNION'S ARGUMENTS:
3. 1 The Union is seeking to have regular and rostered overtime included in calculations for holiday pay. The Union does not believe it is unreasonable that extra hours provided by employees to assist the Company cater for extra demands and duties on a regular basis should be excluded in holiday periods when employees need it most.
2 A survey of many industries in the Cork area shows sick pay schemes ranging from 4 full weeks plus 4 half weeks to 12 weeks in general. The Union believes that the Company has a duty of care to its employees, to provide a reasonable sick pay scheme giving some level of cover against loss of earnings should a worker fall sick. The Union does not feel that the 4 weeks plus 4 half weeks being sought is unreasonable or would lead to increased absenteeism.
3 Workers who fall sick will be at a serious loss of income.
COMPANY'S ARGUMENTS:
4. 1 The sick pay scheme is jointly funded by the Company and the members of the scheme. There is a shared responsibility in monitoring payments. The percentage of absenteeism in the Company is above the national average. The Company has a very real fear that any move away from a jointly funded contributory scheme will significantly increase absenteeism and therefore threaten the viability of the operation.
2 The Company is showing a willingness to cushion the benefit impact for employees. At Conciliation the Company indicated that the base figure for Company sick pay weekly amount would be increased from €12.70 to €80. This would be funded by equal adjustments to the weekly contributions of both the Company and Employee rising from €0.24 per week to €1.00.
3 Overtime is specifically excluded from pay calculations for annual leave under the terms of the Organisation of Working Time Act, 1997. The claim for the inclusion of overtime earnings in the calculation of annual leave pay is cost increasing and therefore is outside the terms of "Towards 2016" Agreement and should not be allowed.
RECOMMENDATION:
Inclusion of average overtime in holiday pay
The Court does not recommend concession of this claim.
Sick pay scheme
The Court recommends that a sick pay scheme be introduced which provides for the following:
- 4 weeks full pay.
- 4 weeks half pay.
- Social Welfare payment to be returned to Company.
- No payment for the first 3 days of any absence.
- One years service requirement to qualify.
The scheme should be introduced from the 1st January, 2008 and any question of abuse should be dealt with through the Company/Union Disciplinary procedure.
Signed on behalf of the Labour Court
Raymond McGee
17th December, 2006______________________
DNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.