FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : MCCORMICK MCNAUGHTON (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AGEMO DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr Nash |
1. 1. Parity Pay Claim 2. Redundancy Terms
BACKGROUND:
2. The Union's claim is in regard to two issues; parity of pay for its non-craft members and redundancy terms. The Union are claiming parity of pay for its members with the crafts people who received a 9% increase in 2007. The Union argues that its members have been proactive in embracing change and played a major role in the growth and development of the Company. The Company contends that the pay increase for craft persons was in recognition of the fact that the Company's rates were out of line with their competitors. The second of the Union's claim is for an improved redundancy package. The Company argues it has made the best deal possible in it's current circumstances.
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 27th June, 2008 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court Hearing took place on the 17th July, 2008
UNION'S ARGUMENTS:
3. 1 The Union's members have always been proactive in embracing change within the Company, and played a major role in the growth and development of the Company. Company's profits have greatly increased over the past number of years. The Union believe that the Company is now omitting its members from sharing in its improved profitability.
2 The Union are seeking an improved redundancy package of Statutory redundancy plus three weeks pay per year of service with no cap. The members concerned have contributed to the unprecedented growth of the Company over the past number of years.
COMPANY'S ARGUMENTS:
4. 1 The increase in pay for craft persons was given firstly to bring them in line with the Company's comparators. Secondly, the Company recieved productivity improvements in return for the increase. The rate of pay for all other staff has been benchmarked and is in line with or above market rates.
2 The Company has made the best redundancy offer it can under its current circumstances. The Company have made substantial losses to date in the first six months of this year. The Company must take cognisance of this fact when making any offer for redundancy.
RECOMMENDATION:
Having considered the oral and written submissions of both parties on two issues referred, the Court recommends the following:
Claim for an increase of 9% in rates of pay for non-craft grades
- The Union submitted a claim for an increase of 9% in the rates of pay for non-craft grades, in line with the increases paid to craft grades. The Company stated that the increase granted to the craft grades was part of a package which recognised that these rates were out of line with their competitors and secondly was paid in return for a number of necessary productivity measures.
Having examined the case the Court is not satisfied that there is merit in the Union’s claim and consequently rejects the claim.
- The Court notes that the Company has offered to pay two weeks pay per year of service (subject to a cap of €600.00 per week) plus the statutory redundancy payments. The Union sought an improvement in the terms to three weeks pay per year of service, with no cap plus the statutory redundancy payments.
The Court upholds the Company's redundancy offer with the removal of the cap of €600.00 per week on the exgratia terms. Accordingly, the Court recommends that the redundancy terms should be two weeks pay per year of service (no cap) plus statutory redundancy payments.
Signed on behalf of the Labour Court
Caroline Jenkinson
5th August, 2008______________________
DNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.