FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : MUSGRAVE RETAIL PARTNERS IRELAND - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. Pay increase.
BACKGROUND:
2. This case concerns the Union's claim, on behalf of Salaried Distribution Team Members (SDTMs) in the Company's chill distribution centre at Fonthill, Clondalkin, Dublin 22, for the full pay terms of the 'Towards 2016 Review and Transitional Agreement' (Towards 2016). The Union referred this case to the Labour Court on 14th May, 2010, in accordance with Section 20(1) of the Industrial Relations Act, 1969. The Union agreed to be bound by the Court's Recommendation.
A Labour Court hearing took place on 16th June, 2010.
UNION'S ARGUMENTS:
3. 1. The Company is a very profitable enterprise and cannot plead inability to pay the terms of Towards 2016.
2. The Company is, however, attempting to terminate unilaterally a national pay agreement.
3.The Labour Court has previously recommended that profitable companies should honour the terms of Towards 2016.
COMPANY'S ARGUMENTS:
4. 1. The Company's turnover and profits continue to fall.
2. It is now an accepted fact thatthe pay elements of Towards 2016 no longer apply.
3.The Company is currently engaged in discussions with staff on pay and conditions and concession of this claim would undermine these discussions.
RECOMMENDATION:
The Court has considered the submissions of both parties to this dispute. The issues of pay and change/modernisation are inextricably linked in this Company and cannot be dealt with in isolation of each other. Accordingly the Court recommends that the parties re-engage with each other, either at local level or at the LRC, and agree a comprehensive resolution of all issues in the context of the Company's need to increase the efficiency of its operations to compete in the present market environment and protect employment and the Union's aspirations on job security, pay and conditions of employment. These discussions should be completed by 31st July 2010 and the issues put to ballot. Either party may apply to the Court for an extension of this period should it deem it necessary to do so.
In the event that the parties cannot reach agreement within this timescale the parties may refer the outstanding items back to the Court for a definitive Recommendation. The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
29th June, 2010______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.