FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PERMANENT TSB (FINANCE) - AND - UNITE DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Cryan Worker Member: Ms Tanham |
1. Payment of Bonus
BACKGROUND:
2. This case concerns a dispute between the Company and Union in relation to the application of bonus payments due to staff employed in the Administration Department of the organisation. The Union is claiming that the 2008 bonus due for payment in March 2009 was reduced by 75% for administrative staff but that sales staff were paid 100% of their bonus entitlements at the end of the 2008 calendar year. Management's position is that the reduced payment of the administration bonus in March 2009 was a matter of timing and that sales staff were traditionally paid their bonus payments at the end of each quarter. Administration staff, however, had their bonus payments calculated at year end and paid the following March. Management further contends that a pay freeze was introduced in the Company and restrictions imposed by the Department of Finance has resulted in payments other than salary requiring sanction from the National Treasury Management Agency.
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 11th October 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 19th January, 2012.
UNION'S ARGUMENTS:
3. 1 Sales staff and management staff were paid their 2008 bonus in full. This is unacceptable as the administration staff had their bonuses for the same period reduced by 75%
2 It is not accepted that this issue forms part of the 2009 Agreement concluded at the LRC. The issue of the bonus payments is a stand alone issue and should be treated as such.
COMPANY'S ARGUMENTS:
4 1 Sales staff over many years had bonus payments paid at the end of each quarter. Some managerial staff opted for the same facility. Other management staff opted for the yearly calculation and lost 75% of the bonus as well as the administrative staff.
2 The current financial difficulties being experienced by the Bank make it unsustainable to concede the Union's claim or to pay any bonus payments whatsoever. In addition these issues all formed part of the 2009 Agreement which was agreed by the parties at the Labour Relations Commission.
RECOMMENDATION:
The matter before the Court concerns a claim by the Union on behalf of 64 employees in the Administration Department of Permanent TSB Finance for payment of 100% of the Performance Related Bonus due in respect of the year 2008. Payment of the bonus has normally been paid to employees in the Administration Department at the end of March each year; however, due to a pay freeze imposed in the Irish Life and Permanent Group as a whole, only 25% of the bonus was paid to the Administration employees. The Union sought payment of the remaining 75%.
Having considered the submissions of both sides the Court notes the “Placing Agreement” imposed on the Company by the Minister for Finance from June 2011 which is legally binding and specifically prohibits the Company from making any performance bonus payments, no matter when such bonuses were earned.
In these circumstances, the Court is debarred from considering any matters related to bonus payments.
The Court cannot recommend in favour of the Union’s claim.
Signed on behalf of the Labour Court
Caroline Jenkinson
10th February 2012______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.