FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ATHY INTERNATIONAL CONCENTRATES (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Grier Worker Member: Ms Ni Mhurchu |
1. Pay Parity
BACKGROUND:
2. This case concerns a dispute between Athy International Concentrates and SIPTU in relation to pay parity. The issue in dispute concerns a transfer of workers from the Company's Drogheda plant, which is due to close shortly to its Athy plant. The Union is claiming that the Drogheda workers are paid a higher rate of pay and that these rates
should be applied to workers in the Athy plant.
Management's position is that the rates of pay applicable in the Athy plant are set by examinig analogous rates of pay and have been in excess of National Wage Agreements in recent years. Management also contendthat applying the Drogheda rates will effectively make the Athy plant non viable into the future.
The dispute was 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 matter was referred to the Labour Court on 22nd April, 2008, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearingtook place on 19th June, 2008.
UNION'S ARGUMENTS:
3 1 Workers transferring from the Drogheda plant are in receipt of other terms and conditions of employment of Athy workers such as Pension and Sick Pay entitlements. It is reasonable to seek the additional rates of pay for workers employed at the Athy plant as the work carried out is comparable.
2 The agreement concluded in the past was an interim arrangement. Workers were led to believe at the time of the agreement that pay parity would apply in the Athy plant. This has not happened.
COMPANY'S ARGUMENTS:
4 1 Concession of the Union's claim will result in the non viability of the Athy plant into the future. The excessive costs of operating the Drogheda plant is a major contributoy factor in its closure.
2 The Union is party to an agreement on the calculation of wage rates and the process which periodically reviews the pay rates. It is unacceptable to be party to an agreement on these issues and then seek further increases in rates of pay which is at variance to the terms of the agreement.
3 Wage increases negotiated in recent times have been in excess of increases negotiated under National Wage Agreements.
RECOMMENDATION:
Having considered all of the points made by the parties to this case, the Court can find no grounds to recommend concession of the Union's claim.
Signed on behalf of the Labour Court
Raymond McGee
27th June 2008______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.