FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : ARGOS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - A WORKER (REPRESENTED BY MANDATE) DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. Appeal of Rights Commissioner's Recommendation R-119093-IR-12/SR.
BACKGROUND:
2. The case before the Court concerns the Employer's appeal ofRights Commissioner's Recommendation R-119093-IR-12/SR. The dispute relates specifically to the Union's claim that the Employer has breached the terms of a Pay Agreement reached between the Company and the Union in 2007. The Union contends that the Employer is acting in breach of the terms of the Agreement by altering the methods of calculating and applying Long Service Increments. The Employer rejects the Union's claim and agreement could not be reached.
The matter was referred to a Rights Commissioner for investigation and recommendation. On the 20th June, 2012 the Rights Commissioner issued his Recommendation as follows:
"I see considerable merit in the claim and it is upheld in full. I recommend that the Claimant's Long Service Increment should be paid or applied to him based on the anniversary of the start or commencement date of his employment with the Employer.
I so recommend".
On the 30th July, 2012, the Employer appealed the Rights Commissioner's Recommendation to the Labour Court in accordance with Section 13(9) of the Industrial Relations Act 1969. A Labour Court hearing took place on the 21st November, 2012.
UNION'S ARGUMENTS:
3. 1. It is standard Company practice to award pay increments on the annual anniversary of an employee's commencement date.
2. It was agreed between the Company and the Union that the new Long Service Increment would apply at the commencement of year six and not on completion of year six.
3. The Employer is acting in breach of the terms of the Company/Union Agreement.
EMPLOYER'S ARGUMENTS:
4. 1. The Employer is of the view that it has fully complied with the terms of the Agreement.
2. The Employer contends that since 2008 it is an accepted Company-wide practice to award Long Service Increments when an employee has completed the required six or nine years' service.
3. The Employer is not in a position to revert to the former practice of applying Long Service Increments prior to 2008.
DECISION:
The Court has carefully considered the submissions of both parties to this dispute. The Court has also given consideration to the correspondence supplied subsequent to the hearing.
The Court finds that a plain reading of the wording of the 2007 Agreement supports the Union's position. However, the Court also notes that the Agreement that has been implemented across the Company since 2007 on balance supports Management's position.
Clearly, therefore, the parties are not ad idem on what they agreed in 2007. Furthermore, the Court notes that the parties have not collectively engaged with each other regarding the substantive issues in dispute.
Accordingly, the Court, on an exceptional basis, decided that the Claimants in the Longford Store are entitled to rely on the wording of the Agreement and upholds their claim for payment of the first LSI with effect from the commencement of their sixth year of service with the Company.
The Court also decided that the parties should, without delay, engage, with a view to resolving the issues.
Furthermore, all staff should now be notified of the procedures in place to address the substantive dispute.
No further actions to advance their respective positions should be taken by either side until the procedures governing the resolution of disputes between the Company and the Union have been completed.
The Court so decides.
Signed on behalf of the Labour Court
Brendan Hayes
21st December 2012______________________
SCDeputy Chairman
NOTE
Enquiries concerning this Decision should be addressed to Sharon Cahill, Court Secretary.