FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CELTIC MEDIA GROUP (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - UNITE DIVISION : Chairman: Mr Hayes Employer Member: Ms Cryan Worker Member: Mr Shanahan |
1. Cost Reduction Programme
BACKGROUND:
2. This dispute arose from the Company's wish to implement cost reduction measures and from the Union's rejection of the Company's proposal to achieve savings by cutting 10% from its members' rates of pay. This 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 12th December, 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 30th March, 2012.
UNION'S ARGUMENTS:
3 1 The Union contends that its members have gained little from the fact that the Company has been highly profitable.
2 Temporary changes agreed in the LRC and a substantial staff reduction (from 2009 restructuring) had produced and were still producing savings which should be acknowledged so that their earnings should not be targeted for reduction given the very unsocial hours being worked by this group of workers.
3 Management had safeguarded themselves and high-ranking executives from sharing pain thereby protecting their own pensions while Workers lost a large portion of their pension entitlements and might not have a large enough fund to provide an adequate pension in retirement.
COMPANY'S ARGUMENTS:
4 1 The Company was in a very challenging position which necessitated some temporary reductions in payroll.
2 Bonuses had been all but done away with, overtime had been cut back and management had taken a 10% pay cut since 2009.
3. The Company is now monitored by a bank-appointed consultant whose approval of measures could not be taken for granted.
RECOMMENDATION:
The Court has carefully considered the submissions of both parties to this dispute.
The Court recommends that the parties engage with a view to agreeing productivity measures equivalent to 5% of payroll costs for this group. The Court further recommends that the parties conclude such discussion within six weeks of the date of this recommendation.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
25th June, 2012______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.