FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TESCO PORTLAOISE (REPRESENTED BY TESCO IRELAND) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Ms Doyle Worker Member: Mr Shanahan |
1. Payment by Direct Debit - Compensation
BACKGROUND:
2. This case concerns a dispute between Tesco (Portlaoise) and SIPTU in relation to salary payments. The dispute concerns management's intention to pay all staff by Electronic Fund Transfer (EFT) as opposed to cash. As an interim measure the Company have been paying certain staff by cheque which are then cashed in store. Management contends that these practices are outdated and cannot continue. Management further contend that all staff must be paid by EFT in future.
The Union's position is that some staff do not have Bank Accounts and that the current practice of being paid in cash or by cheque could continue without any difficulty. The Union further contends that if payments by EFT are unilaterally introduced, workers should, at the very least, be compensated for the change.
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 20th July, 2011. A Labour Court hearing took place on 9th November 2011, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3 1 There is a collective agreement in place that obliges management to enter into discussions prior to implementing significant change. In this case if changes are to be unilaterally implemented, the workers should be compensated accordingly.
2 Some workers involved in this case do not have bank accounts and heretofore have been paid by cash and more recently by cheques which are cashed in store. In all the circumstances, the Union contends that these practices could continue without difficulty.
COMPANY'S ARGUMENTS:
4 1 The new store in Portlaoise does not have the facility to pay by cash into the future. Many other stores have converted to EFT payments and no issues have been raised. In addition management's interim measure of paying by cheque cannot continue as a two tier system of payment is totally inappropriate and unsustainable.
2 It is now a general condition of employment across all sectors that staff are paid by EFT. In such circumstances it is not appropriate to compensate workers for co-operating with such standard arrangements.
3 Concession of this claim will inevitably lead to repercussive claims by other staff in the future.
RECOMMENDATION:
The Court has carefully considered the submissions of both parties in this case.
Payment of wages by Electronic Funds Transfer is ubiquitous in Irish Industry and is the norm now in employment contracts.
However, the Court notes that there is a collective agreement in place between the parties governing this matter that provides for payment by cash or cheque in certain circumstances.
No agreement is immutable and it is common practice to update agreements in line with developments in industry generally.
Accordingly the Court recommends that the parties meet to discuss the terms on which they might vary the agreement to bring it into line with modern practices.
The Court so recomends.
Signed on behalf of the Labour Court
Brendan Hayes
24th November 2011______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.