FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PENNEYS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - MANDATE DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Doyle Worker Member: Mr Shanahan |
1. Union Issues:- 3% pay increase, abolition of under 18 pay rate, banded hours contracts, additional service days. Employers Issues:- new entry pay rate & scale, new Sunday premium rate, standardisation of sick pay, changes to unsocial hours premiums.
BACKGROUND:
2. The case concerns a dispute between the Company and Union in relation to various issues. The Union is seeking (a) a 3% pay increase, (b) banded hours contracts, (c) abolition of under 18 pay rate (d) additional service days.
The Company claims that it is entitled to seek concessions in relation to the Union's claims and is seeking new pay rates and scales for new entrants, new Sunday premium rate, standardisation of sick pay entitlements and changes to unsocial hours premium payments.
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 12th March, 2013 in accordance with Section (26) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 4th June, 2013.
UNION'S ARGUMENTS:
3. 1. (a)The Union is seeking a 3% pay increasewithretrospective application to July 2012 on the basis of the profitability and trading success of the Company. There have already been pay increases applied to Management grades and also in comparable employment and the Union is justified in seeking an increase for its members in this case.
(b)The Union is seeking a contractual entitlement to the hours that have applied over time to allow the workers some certainty in relation to earnings and personal planning.
(c)The under 18 pay (70% of the normal pay rate) is outdated and should be abolished as less than 1% of staff are in receipt of that rate and the cost of its removal is negligible.
(d)The Union consider it appropriate to have an additional day's service leave given to workers across all bands in recognition of their contribution in assisting in the Company's success.
MANAGEMENT'S ARGUMENTS:
3. 1. (a)The Company has applied generous pay increases in 2008 (5%) and 2010 (3.5%) without concession and pay increases to management grades were applied after a four year pay freeze. The Company is prepared to offer a pay increase but is entitled to seek concessions for the payment.
(b)The banded contracts as sought are not suitable for the sector. The Company has developed a model that is more suitable to its trading and working environment and application of this model would also give certainty to regular part-time employees who consistently work in excess of their weekly contracted hours.
(c)The Company is prepared to look at abolishing the Under 18 rate in the context of an overall agreement
(d)The Company cannot sustain the cost of the additional service leave sought by the Unionas the labour costs are already extremely high.
RECOMMENDATION:
The matter before the Court concerns the Union’s claim for the following: - (i) 3% increase in pay from July 2012, (ii) protection of established weekly/earnings (banded contracts), (iii) abolition of under 18 rate of pay and (iv) additional service leave.
In response to the claim the Company sought cost-offsetting measures, as follows:- (i) three-point pay scale to replace the current six-point scale for all new entrants, (ii) introduction of a new sick pay scheme for all new entrants, (iii) Sunday/Public Holiday premium payments of time plus a half to apply from date of agreement to new starters and to those existing staff not currently in receipt of double time payments, and (iv) adjustment of unsocial hours premium to apply from 11pm to 7am for all staff.
Having considered all aspects of the case the Court notes that the Union did not have sight before the hearing of a document which summaries the Company’s proposals on banded contracts, which the Union described as a helpful document in terms of progressing its position on this issue. The Court notes that both sides are willing and anxious to agree banded contracts for part-time staff and accordingly recommends in the context of an overall agreement on all issues before the Court that the parties should enter into further meaningful negotiations on this issue which should be completed within one month of the date of this Recommendation. The Court notes that both sides agreed that once finalised a review of the general application of the new banded contract system will take place twelve months after its initial application and further reviews will take place on an annual basis thereafter.
Taking account of all arguments before the Court, the Court recommends that pay should be increased by 3% with effect from 1stJune 2013; it recommends abolition of under 18 rate of pay; it recommends that Sunday/Public Holiday premium payments of time plus a half should apply to new starters and to those existing staff not currently in receipt of double time payments; it recommends adjustment of unsocial hours premium to apply from 11pm to 7am for all staff instead of from 11pm to 8am as currently applies; it recommends introduction of a new standardised sick pay scheme for all new entrants as detailed by the Company in its submission to the Court.
The Court does not recommend replacement of the current six-point pay scale with a three-point salary scale; and does not recommend concession of the claim for additional service leave.
In recommending the above, the Court is stating that both sides must consider this Recommendation as a composite package, in full and final settlement of all issues before the Court.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
19th June, 2013______________________
AH.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.