FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : DIAGEO IRELAND LTD - AND - A WORKER DIVISION : Chairman: Mr McGee Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Alleged non payment of National Wage Agreement Payment
BACKGROUND:
2. This case concerns a dispute between the Company and the worker in relation to the alleged non-payment of increases due National Wage Agreements (NWA). The Claimant's position is that, although he availed of voluntary redundancy/early retirement from the 1st January 2006, he was entitled to receive an NWA icrease which was due for payment on that date.
The Company's position is that a severance agreement was concluded with the worker prior to the cessation of his employment which was in full and final settlement of all
claims relating to his employment with the Company. The Company further contended that the worker was graded as a team leader and as such was subject to a performance related system of pay determination. Increases under this system would be based on the Company's fiscal year (July -June) and would be applied in October each year. As the worker's employment finished with the Company on 1st Januuary, 2006, he had no entitlement to the increase.
The dispute was not resolved at local level and was referred to the Labour Court on 11th July, 2006 in accordance with Section 20(1) of the Industrial Relation Act, 1969. A Labour Court hearing took place on 5th June, 2007. The worker agreed to be bound by the Court's Recommmendation.
UNION'S ARGUMENTS:
3 1 As the worker was in the employment of the Company on 1st January 2006, an entitlement existed to receive wage increases negotiated at national level which were due for payment on that date.
2 Other employees who availed of the voluntary redundancy/early retirement were paid national wage increases.
COMPANY'S ARGUMENTS:
4 1 The worker in question ceased in his employment and signed a comprehensive agreement that there would be no further claims taken against the Company and that all payments received were in full and final settlement in relation to the cessation of employment.
2 The worker in question was a Team Leader and was subject to a performance related pay system of pay determination. This resulted in a annual review carried out in line with the Company's fiscal year and subsequent increases retrospectvely paid to January each year. As the worker was not employed at the time of the review there was no entitlement to the retrospective pay increases.
3 Other workers who were paid national wage increases were a different grade and not subject to a system of performance related pay.
RECOMMENDATION:
Having considered the submissions made by the parties and in particular the terms of the agreement between the Company and the team leaders, the Court does not consider that there is merit in the claimant's case and does not recommend that it be conceded.
Signed on behalf of the Labour Court
Raymond McGee
3rd July 2007______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.