FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : FBD INSURANCE PLC (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - UNITE (AMICUS SECTION) DIVISION : Chairman: Mr McGee Employer Member: Mr Grier Worker Member: Mr Nash |
1. Maternity Top-Up
BACKGROUND:
2. FBD Insurance plc was founded in Ireland in 1970 and underwrites general insurance products for the direct market. It employs 805 staff, a majority of whom are female.
In 2005 the Union Unite (Amicus Section) initiated a claim for full maternity top-up payment (i.e. payment of the differential between full salary and statutory maternity pay for the full period of maternity leave). Following 6 months of informal discussions it was decided by the Union that a local meeting would serve no purpose.
As the dispute could not be resolved at local level it was the subject of two conciliation conferences under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 31st May, 2007, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 18th October, 2007.
UNION'S ARGUMENTS:
3. 1.The Union maintain that 4 years continuous service is required to obtain maternity benefit whereas all other Company benefits require just one year of continuous service.
2. The rate of payment offered by the Company is calculated at 66% of salary less the full rate of statutory maternity benefit. This is less than the 100% sought by the Union and the Union maintain that this effects disproportionately the lower paid with the lowest paid receiving potentially nothing at all.
3. The benefit offered by the Company applies only to the first 18 weeks of Maternity Leave and not the 26 statutory period, only half of which is paid during the leave period with the balance paid in monthly instalments commencing 3 months after the individuals return to work.
COMPANY'S ARGUMENTS:
4. 1.In September 2007 the Company announced that it planned to introduce a Maternity top-up scheme which it considered to be generous. The scheme would benefit eligible staff with 66% of gross prior year salary for 18 weeks. Nothing was or is being sought in return.
2. The company generally back fills maternity leave absences across the branch network where maternity leave is highest.Temporary resources are hired, incurring expenditure through recruitment, training and management time. The Company will now experience a doubling up on labour costs when back filling roles during paid maternity leave.
3. There is no statutory obligation on the employer to pay Maternity top-up benefit. The only other indigenous general insurer has not maternity top-up arrangement.
RECOMMENDATION:
The Court recommends that the parties should re-engage, with the assistance of an IRO of the Labour Relations Commission if necessary, to negotiate a scheme which conforms with the general norms, which should be fully compliant with Equality legislation and which should ultimately yield:-
- 100% of salary, less DSFA Benefit, for a period of 26 weeks (on a phased basis if so agreed)
- Benefit to apply after one year's service.
Signed on behalf of the Labour Court
Raymond McGee
23rd October, 2007______________________
MG.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.