FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BROTHERS OF CHARITY SERVICES LIMERICK - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION IRISH NURSES AND MIDWIVES ORGANISATION IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Ms Ni Mhurchu |
1. Incremental Payments
BACKGROUND:
2. This case concerns a dispute between the Brothers of Charity Services Limerick and SIPTU, IMPACT and the INMO in relation to the witholding of incremental payments to employees. Management's poition is that continuing funding cuts and other financial difficulties have made it unsustainable to apply wage increments since 2008. The Unions' position is that the workers have already incurred significant pay cuts as well as the introduction of the public service pension levy. The Unions contend that further cuts to the workers would be unsutainable and in breach of the Public Service Agreement 2010-2014 which prohibits further pay reductions for the lifetime of the Agreement.
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 6th January, 2011 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 16th March, 2011.
UNION'S ARGUMENTS:
3 1 The workers are unable to sustain further pay cuts. They have already incurred significant losses through the public service penson levy and other public service pay cuts. Management's position that it's funding has been reduced does not justify a change to the contractual entitlements of workers by witholding their wage increments.
MANAGEMENT'S ARGUMENTS:
4 1 Management have a serious difficulty in applying wage increments in the current climate. There has already been a reduction in funding from the HSE and further cuts are expected. In these circumstances management have no option but to discontinue the payments of increments.
RECOMMENDATION:
It is accepted that the workers associated with this claim are covered by the Public Service Agreement 2010 - 2014. That Agreement provides that workers encompassed by its terms will not be subject to additional pay cuts beyond those imposed by the Financial Emergency Measures in the Public Interest (No.2) Act 2009.
The Court accepts that the withholding of increments amounts to a de facto pay reduction. It is therefore contrary to the spirit if not the letter of the Public Service Agreement 2010 - 2014. The court fully understands the financial difficulties in which the employer finds itself and the need to address those difficulties, however, it is incumbent on all parties to abide by the terms of the Public Service Agreement and the Court has been urged by the parties to that Agreement to uphold its terms in its recommendations. Accordingly, the Court recommends that the increments be restored with full retrospective effect.
The Court further recommends that the parties engage as a matter of urgency with a view to identifying equivalent savings in other areas.
Signed on behalf of the Labour Court
Kevin Duffy
4th April 2011______________________
AHChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.