FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ST AIDAN'S DAY CENTRE (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SIPTU, PNA, INMO AND IMPACT DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Ms Tanham |
1. Non- Payment of Incremental Credit.
BACKGROUND:
2. St Aidan's Services Gorey is a voluntary organisation founded in 1968 by concerned parents and friends. It provides comprehensive services for people with a wide range of disabilities, children with special needs and Day Care for the older person. Funding for St Aidan's Services is mainly provided by the HSE through Section 39 of the Health Act 2005 by way of a grant based on a Service Level Arrangement. A token sum of money compared to the costs of running the Service is raised through fundraising each year. St Aidan's currently employs approximately 130 staff. Management are claiming inability to meet the financial requirement to pay increments due since June 2010 due to cuts in funding. The Unions are seeking the payment of wages due and the reinstatement of all increments due in the coming years.
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 November 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 5th December, 2012..
UNIONS' ARGUMENTS:
3. 1. The Unions are aware of the financial difficulties that the Company is facing, but since the 2004 benchmarking exercise all Employees are on pay rates equivalent to the appropriate grades in the public sector where there has been no freeze on increments.
2. The financial challenges facing the Company does not absolve its responsibility to pay increments and to honour their contractual obligations.
COMPANY'S ARGUMENTS:
4. 1. In 2008 the Service's Section 39 grant was cut by 1%, while in 2009 it was cut by a further 2%. The following years saw cuts of 5.75% 1.8% and 3.7% in total 14.25%. This does not include cuts in the CSP Scheme funded from Pobal.
2. The Company acknowledges that there is an alignment between their pay scales and those of the Department of Health and Children and staff are entitled to their increments. However the payment of increments will result in staff losing their jobs and all Unions need to be aware of this.
RECOMMENDATION:
There is no dispute concerning the fact that the Centre is receiving a reduced level of funding from the HSE and is being required to provide the same level of service as hitherto. Nor is there any dispute concerning the fact that the staff associated with this claim are aligned for pay purposes with HSE staff. HSE staff continue to receive increments and it follows that those who have pay parity with them are also entitled to receive the same increments.
The Court has considerable sympathy for the Centre which finds itself in a wholly unsatisfactory situation not of its own making. It does not have any control over its level of funding nor does it have de facto control over pay levels of its staff. Yet it is not being provided with sufficient funds to meet its obligations to its staff. Nevertheless, having regard to the pay alignment already referred to the Court has no option but to acknowledge the entitlement of the staff concerned to increments and to recommend concession of the Unions’ claim.
Signed on behalf of the Labour Court
Kevin Duffy
10th January, 2013______________________
JFChairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.