FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : LOUTH COUNTY CHILDCARE COMMITTEE (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr Nash |
1. Salary Scale
BACKGROUND:
2. The Worker concerned is an administrator at the Company. The Union's claim is that the method used to assimilate her from point 12 on the Local Authority/HSE Grade III payscale to point 6 on the Grade IV payscale was inappropriate. The effect of this is that she is now at a lower point on the scale. In December, 2005, the Department of Finance regularised the payscales for County Childcare Committee workers in certain positions. The pay scales of City and County Committees as at 1st December, 2005 were used. No guidance was given as to the method of assimilation to be used in deciding what point an individual should be placed on the new scale. The Company maintain that this was not a promotion, it was a regularisation of salary scales. The post is not a public service post. The Company is a limited company and as such there is no requirement to adhere to civil service pay norms.
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 14th November, 2007 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 6th March, 2008.
UNION'S ARGUMENTS:
3. 1 The worker was on a Local Authority/HSE scale and moving onto another Local Authority/HSE scale. It appears reasonable that the rules which apply to those employments be used for assimilation particularly in the absence of any other obvious method.
2 There are two methods generally used in the context for assimilation. The first normally applies when a post or post holder is upgraded. In this case, the post holder would be assimilated to the same point on the higher scale. The other method is covered by Circular 10/71 on "Starting pay on promotion". This often applies in cases other than promotion to determine the assimilation point for an individual going on to another pay scale. This circular states "An officer may enter the new scale at the point nearest but not below existing pay plus one increment". If this were to be applied in this instance, the worker would have been placed on point 7 of the new scale.
3 The employer argues that it is a limited company and Public Service rules do not apply. We accept it is a limited company, however, they entered into a freely negotiated agreement with the Union to pay Public Service Rates.
COMPANY'S ARGUMENTS:
4. 1 The Company is a private limited company that has the authority to determine their own terms and conditions of employment. While the salary scales set by the Department of Finance apply, there is no suggestion that any other term or condition, practice or custom, established anywhere in the Civil Service must also apply to this Company.
2 It is the Company's position that the salary scale was correctly applied in 2005. When the new scales were authorised, the Company moved the worker to the appropriate similar point on the new scale ensuring that this did not reduce her rate of pay. This was not a promotional situation. No aspect of the work of the position was affected by the change in grade.
3 It must also be recognised that concession of this claim has the potential for knock-on effects across all other County Childcare Committees at all of the relevant grades.
RECOMMENDATION:
The case before the Court concerns the assimilation of one worker employed as an Administrator by Louth County Childcare Committee, following the Department of Finance’s regularisation of three posts, including the post of Administrator, in County Childcare Committees on 1st December 2005. At the time the claimant was on the maximum point of Grade III and Management moved her to Grade IV to the nearest higher monetary point, i.e. point 6.
The Union sought the application of Civil Service Circular 10/71 “Starting Pay on Promotion”, which would assimilate her on the next higher monetary point, plus one increment, thereby placing her at point 7 of Grade IV. Alternatively, the Union sought the normal arrangement which applies when a post is upgraded, assimilation to the same point on the higher scale, this would result in her going to the maximum of Grade IV i.e. point 8.
Following the hearing, the Court sought additional information on how other County Childcare Committees applied assimilation following the Department of Finance’s letter dated 13th December 2005, when posts were regularised. This information confirmed that 27 out of 32 Committees assimilated staff using the same method as Louth County Childcare Committee. On that basis the Court is satisfied that the Claimant was correctly assimilated on to point 6 of Grade IV in December 2005.
Therefore, the Court does not uphold the Union’s claim.
Signed on behalf of the Labour Court
Caroline Jenkinson
28th May,2008______________________
DNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.