FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : FEDERAL SECURITY SOLUTIONS - AND - SIPTU MEMBERS (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Duffy Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. Pay Proposals For 2009, Forthnightly Pay And Alignment Of Pay Week
BACKGROUND:
2. The issue before the Court concerns the Company's wish to change the pay week from weekly to fortnightly and also to revise the pay format to bring it in line with the pay structure as established by the Joint Labour Committee for the Security Industry. In November, 2008 the Company wrote to the Union setting out their pay proposals for 2009. The Union balloted its members, the result of which was against acceptance. The Union are seeking compensation payments for employees transferring from weekly pay to fortnightly pay. It is also seeking that employees paid on a 48 hour composite or premium rate basis continue to be paid accordingly and their rates of pay be increased from the 1st January, 2009 in accordance with existing agreements.
The dispute was referred to the Labour Court on the 5th January, 2009 in accordance with Section 20(2) of teh Industrial Relations Act, 1969, and both partiesa agreed to be bound by the Recommendation. A Labour Court hearing took place on the 20th January, 2009.
UNION'S ARGUMENTS:
3. 1 In January 2007 the Union cooperated with the Company in restructuring the pay system so that all new entrants would be paid on the basis of basic pay and overtime payment separately. This decision allowed the Company to be more competitive with other companies when it came to pricing contracts. At present nearly 50% of the Company's employees are paid basic pay and overtime separately.
2 Other companies in this industry paying staff on a composite pay system and seeking to move over to payment of basic and overtime separately are doing so on the basis of employing new entrants on the new pay terms and leaving existing staff on their composite pay agreements on a 'red circled' basis.
3 The Union has no objection in principle to the proposed change from weekly pay to fortnightly pay. However, given the adverse effect of the change on those concerned, the Union is contending that they should receive a payment of in excess of one week's wages in compensation for agreeing the change.
COMPANY'S ARGUMENTS:
4. 1 With regard to the change from weekly to fortnightly pay, these changes will not result in any loss to the staff but will assist the Company in its attempt to retain and develop business and security of employment
2 These changes are of paramount importance to the Company, especially the fortnightly pay, as this will allow those involved in payroll not only to be able to devote the proper time to administering the payroll, but also to deal with additional duties that arise as part of the payroll administration.
3 In the case of the changes in calculation, the benefit is the rationalization of pay calculation so that all officers are being treated the same rather than having systems that can create issues because of their appearance of being better in certain circumstances.
RECOMMENDATION:
The Court recommends that the dispute be resolved on the following basis:-
1. The Union should agree to move to fortnightly pay. The Company should provide each employee affected with an advance of €200 repayable over 10 weeks.
2. The Company should agree to continue to apply the composite rate of pay to those to whom it currently applies
Signed on behalf of the Labour Court
Kevin Duffy
February, 2009______________________
DNChairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.