FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DIAGEO/GUINNESS - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Pay Mechanism Choice
BACKGROUND:
2. The Company has implemented major restructuring plans over the past ten years in order to secure the future of the business. The most recent of these plans is the Continuous Improvement Plan part of which is the Total Reward Framework (TRF) a performance related pay scheme, designed to replace the old incremental pay scale for staff. The Laboratory Analysts rejected the proposed new structures and opted to remain in the old incremental pay scheme, which was "red circled" to apply to them only, any new staff would only be offered TRF contracts. This is now disputed by the Union who wish that 2 new Laboratory Analysts be released from their TRF contracts.
The dispute could not be resolved at local 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 7th February 2007 in accordance with Section 26(1) of the Industrial Relations Act 1990. A Labour Court hearing took place on the 20th June 2007.
UNION'S ARGUMENTS:
3.1. The Union contends that the two new Laboratory Analysts should have being offered the option of choice between Total Reward Framework or incremental pay scale/national wage agreements type employment contracts, when they were offered their permanent positions.
2. The Union believes that all existing 15 Laboratory Staff have opted-out of the Total Reward Framework and that having 2 staff within the TRF will not only cause them to be isolated, but introduce a two tier system within the Laboratory.
COMPANY'S ARGUMENTS:
4.1 Since 2003 all new entrants for staff grades are only offered the Total Reward Framework type work contracts.
2. The two new Laboratory Analysts signed T.R.F. contracts which were binding on 1st March 2005, have worked under this system without grievance for over two years.
RECOMMENDATION:
The dispute before the Court concerns the pay mechanism, which should be applied to two Laboratory Analysts who were made permanent on 1st March, 2005 and who were retained on Total Reward Framework (TRF) contracts. The Union claimed that the two employees involved should be given a choice in determining their pay system, between the TRF system and the incremental pay scale/national wage agreement system.
The Company submitted that the only reward system in place since 2003 for new entrants to staff grades is the TRF system and accordingly that system applied to the two Laboratory Analysts in March, 2005.
Having considered all aspects of this case, the Court finds no grounds to find in favour of the Union's claim and therefore the Court upholds the Company's position on the matter.
Signed on behalf of the Labour Court
Caroline Jenkinson
9th July, 2007______________________
JF/JBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.