FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : FERRERO IRELAND LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Ms Tanham |
1. Pay Increase
BACKGROUND:
2. This dispute concerns a claim by the Union for a pay increase for its members. 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 28th June, 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 3rd October, 2012.
UNION’S ARGUMENTS:
3. 1. In February 2009 the Employer informed the Union of a twelve-month pay freeze.
2. In Summer of 2010 the Union served a pay claim on the Employer
3. The proposal was put to their members and was rejected by a secret ballot.
EMPLOYER'S ARGUMENTS:
4. 1. The Union have rejected numerous offers from the Employer
2. Costs have increased and there was a drop in pre-tax profits.
3. The Irish plant has to compete with the other plants worldwide and has lost product lines and machinery to those plants.
RECOMMENDATION:
The Court notes the extensive written and oral submissions of both parties to this dispute.
The Court recommends that the dispute settled on the following terms
Pay :-
The Court recommends that the Company increase it offer to provide for a 3.5% increase in pay over 24 months. The Court further recommends that the increases be phased in as follows
•An increase of 1.75% for 12 months with effect from 1 July 2011•A further pay increase of 1.75% for 12 months with effect from 1 July 2012
Lump Sum :-
The Court recommends that the Company’s offer of €1,200 lump sum be accepted by the Union. The Court further recommends that it be phased as follows:
•€700 gross lump sum at Christmas 2012•Additional vouchers to the value of €250 at Christmas 2012
•A final payment of vouchers to the value of €250 in June 2013
Duration
The Court recommends that the agreement continue for 24 months and expire on 30thJune 2013.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
CR______________________
16th October 2012Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.