FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : KILKENNY GOLF CLUB - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Mr Nash |
1. Inability to pay – Towards 2016
BACKGROUND:
2. The issue before the Court concerns a claim by the Union on behalf of its members for a pay increase in accordance with the Towards 2016 National Agreement. In January, 2009 Management informed the workers concerned that it was not in a position to pay any increases and would be implementing a pay freeze due to a down turn in revenue. The Union disputed Management's claims over the financial position of the club. Following discussions at local level and a Conciliation Conference at the Labour Relations Commission, an independent assessor was appointed. The Union's position is that they were disappointed with assessor's and dispute his findings. The Union are seeking a 3.5% increase in basic pay effective from 1st November, 2008 and an additional 2.5% increase effective from 1st April, 2009.
The issues could not be resolved at local level. The parties referred the case to the Labour Court on the 5th October, 2010, in accordance with Section 20(2) of the Industrial Relations Act, 1969 and agreed to be bound by the Court's recommendation. A Labour Court hearing took place on the 24th May, 2011.
UNION'S ARGUMENTS:
3. 1 The assessor met with teh Union for approximately 30 minutes and no copies of the clubs accounts were supplied. He provided no information on 2007, 2008 or 2009. A reference was made to the club making a revenue loss in 2006.
2 The Union are satisfied the club cannot claim inability to pay given the surplus of money that was available to apply the increases. The total cost of this claim is less than €9,000 annually.
COMPANY'S ARGUMENTS:
4. 1 Due to the decline in revenue strict control must be maintained on all expenditure in order to underpin the club's long-term financial viability and secure employment at the club. Administration and Bar staff agreed to a pay freeze and Management expects similar co-operation from Green-Keeping staff.
2 The current remunerative package for the workers concerned is competitive and is enhanced by a number of job benefits. This was noted by the assessor in his report.
RECOMMENDATION:
It is noted that in 2009 the Club pleaded inability to pay the terms of the Towards 2016 National Agreement. That plea of inability to pay was upheld by the assessor appointed under the terms of the Agreement. In effect the substance of the Union's claim is that the assessor came to the wrong conclusion.
In circumstances where a plea of inability to pay is upheld in an independent assessment the onus is on the party disputing the accuracy of the findings to fully make out their case.
On the information before the Court there is nothing which could undermine the findings of the assessor. Accordingly there is no basis upon which the Court could recommend concession of the Union's claim
Signed on behalf of the Labour Court
Kevin Duffy
13th June, 2011______________________
DNChairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.