FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DEBENHAMS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - MANDATE DIVISION : Chairman: Mr McGee Employer Member: Mr Grier Worker Member: Ms Ni Mhurchu |
1. Commission Pay
BACKGROUND:
2. Following Debenhams acquisition of Roches Stores, the Roches Stores staff who transferred over to Debenhams maintained their terms and conditions under transfer of undertakings. As Roches Stores' Henry Street store was its only store where commission pay applied, this has led to a two tier system where Debenhams pays these former Roches Stores staff on a basic plus commission basis. Debenhams now wishes to integrate these former Roches Stores staff into its pay scales.
This dispute could not 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 28th March, 2008, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 25th June, 2008.
UNION'S ARGUMENTS:
3. 1. The Henry Street store has been a commission store since the early 1970s, and when it was taken over by Debenhams in 2006 all terms and conditions were guaranteed.
2. Guaranteed commission had to apply because the Company was unable to calculate commission as it had applied to staff on a departmental basis.
3.Although the restructuring of the store impacted on sales and profits, the Union argues that the proposed redevelopment of the Henry Street area will increase sales and profits.
COMPANY'S ARGUMENTS:
4. 1. The Company, like all retailers in the current economic climate needs to control its costs. These proposlas allow the Company to control costs without resorting to redundancies.
2. The Company wants to introduce consistency in how its 2,000 staff are paid in its 11 department stores.
3.The current scheme is not a commission scheme as per the retail sector norm as staff receive a guaranteed payment that is not sales-related.
RECOMMENDATION:
Having considered the submissions of the parties, the Court recommends that the proposals made on 19th December 2007 should be accepted by the Union but that discussions should take place between the parties aimed at improving, for this particular group, the present one-in-six ratio of Saturdays off.
Signed on behalf of the Labour Court
Raymond McGee
24th July, 2008______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.