FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : LOUTH LEADER PARTNERSHIP (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION DIVISION : Chairman: Mr Hayes Employer Member: Ms Cryan Worker Member: Ms Tanham |
1. Pay Cut %
BACKGROUND:
2. The Partnership (Pobal funded) provides services in areas of community development, education, family support and back to work initiatives in the County Louth area. Due to a severe reduction in funding Management have proposed a number of redundancies and a 10% cut in pay. The Union have no mandate to engage in pay cuts but have proposed alternative methods of cost saving which could impact on front line services to clients. The dispute could not be progressed and both parties agreed that third party involvement would be necessary.
The dispute could not be 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 dispute was referred to the Labour Court on the 16th April, 2012, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 8th May, 2012.
UNION'S ARGUMENTS
3. 1. Members are being asked to shoulder an unreasonable financial burden, for example in 2009 there were 6 redundancies and increments were frozen.
COMPANY'S ARGUMENTS
4. 1. The priority is not to cut front line services but with an accumulative reduction of 34% in funding it seems inevitable that a pay cut will be necessary in order to break even in 2012.
RECOMMENDATION:
The Court has carefully considered the submissions of both parties to this dispute.
The Court recommends that the parties re-engage with a view to reaching agreement on the issues in dispute in the following context.
- The parties agree to generate payroll savings of €84,000 in the current financial year
- The parties agree to achieve this through one or a combination of the following measures.
- Voluntary Redundancy at a rate to be agreed between the parties
- Unpaid leave in a form that most effectively facilitates the organisation meet its client's needs (this might include, but not confined to, any number of the following options, a job sharing scheme, a scheme modelled on term time working, alternate four and five day working)
- A shorter working week
- A flat or progressive salary related reduction in pay.
The Court so Recommends.
Signed on behalf of the Labour Court
Brendan Hayes
8th May, 2012______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.