FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : ST RAPHAEL'S GARDA CREDIT UNION LIMITED (REPRESENTED BY PHILIP CARNEY) - AND - A GROUP OF WORKERS (REPRESENTED BY UNITE) DIVISION : Chairman: Mr Hayes Employer Member: Ms Doyle Worker Member: Ms Ni Mhurchu |
1. Non payment of 'Towards 2016 - Transitional Agreement'.
BACKGROUND:
2. The 'Towards 2016 Transitional Agreement' was negotiated and agreed by the social partners in October 2008 and was endorsed by the Irish Congress of Trade Unions and IBEC.
Under Clause 5.2 of Unite members' contracts of employment it is stated that adjustment of salaries will be in line with national pay agreements. It is an express term recorded in the written contracts and it has operated as a clear, recurring and uninterrupted practice over many years.
In February 2009 the Unions' members requested their entitlement by writing to the Assistant Manager requesting payment of the first phase of 3.5% pay increase due retrospectively from 1st October, 2008. This request was acknowledged by the Board of Directors.
Following a number of meetings the Company indicated to the Union that it was willing and ready to pay out the once it was established that the agreement was still in place. The Company stated that from what it had been able to establish the Agreement was either suspended, cancelled, postponed or even 'dead'.
The dispute could not be resolved at local level and the parties then agreed to refer the dispute to the Labour Relations Commission without prejudice to their respective positions. Following two conciliation conferences under the auspices of the Labour Relations Commission agreement was not reached and the dispute was referred to the Labour Court on the 17th December 2009, in accordance with Section 20(2) of the Industrial Relations Act, 1969, with both parties agreeing to be bound by the recommendation of the Labour Court. A Labour Court hearing took place on the 12th March, 2010.
UNION'S ARGUMENTS:
3. 1. The Union maintains that all the contracts of employment of all the staff represented by the Union indicate that all pay agreements will be paid in full.
2. The Union contends that the T2016 Transitional Agreement was endorsed by the social partners and the Irish League of Credit Unions. The Union sought the Credit Union to abide by the agreement.
3. Following the first meeting with the Conciliation Officer in October 2009 the Credit Union offered 3% with no retrospection. This was rejected by the Unions' members.
COMPANY'S ARGUMENTS:
4. 1. The Credit Union maintains that the vast majority of employers in the sector have not paid the T2016 Transitional Agreement.
2. The Credit Union maintains that the 3% offer still stands but that in light of the last budget it may be more prudent to review the offer with a view to securing either cost savings or productivity improvements.
RECOMMENDATION:
There was a Transitional National Agreement in place when the last pay round expired for the staff of the Credit Union and the Union sought payment of the first phase on behalf of its members. The Employer was contractually committed to honouring the terms of the National Agreement and accordingly should have met the claim in accordance with the terms of the agreement. This would have meant that the Credit Union either paid the 3.5% to the staff from the due date or exercised its option to plead inability to pay in accordance with the provisions of the agreement. The Credit Union did not avail of the inability to pay provisions and consequently is required to pay the first phase to the staff from the due date i.e. October 2008.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
19th March, 2010______________________
MG.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.