FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : LIAM RICE LTD - AND - A WORKER (REPRESENTED BY UNITE THE UNION) DIVISION : Chairman: Mr Hayes Employer Member: Ms Cryan Worker Member: Ms Ni Mhurchu |
1. Retrospective pay rates.
BACKGROUND:
2. This dispute concerns the Worker's claim that the Company has failed to increase his wages in line with National Wage Agreements. The Worker referred this case to the Labour Court on 21st February, 2012, in accordance with Section 20(1) of the Industrial Relations Act, 1969, and agreed to be bound by the Court's Recommendation. A Labour Court hearing took place on 6thFebruary, 2013, which the Company declined to attend.
UNION'S ARGUMENTS:
3. 1.The Company enjoyed significant profits while at the same time refusing to increase the Worker's wage in line with National Wage Agreements.
2.The Worker's wage should have increased by c.21.5% since 2005, per the terms of National Wage Agreements.
3.The Worker should be compensated accordingly.
RECOMMENDATION:
For reasons submitted to the Court, the employer in this case decided not to attend the hearing into the dispute. The Court respects the employer’s decision but takes the view that the investigation into the dispute would have been greatly assisted had a representative of the employer been available to engage with it on the issues under consideration.
Having reviewed the extensive written and oral submissions made by Unite on the applicant’s behalf, the Court finds that there is merit in the Union's case. In particular it notes that the worker concerned was entitled to have the terms of successive National Wage Agreements applied to his rate of pay. The employer’s refusal to do so over many years has deprived the worker concerned of cumulative increases amounting to 21.5% over a period of 8 years. The worker concerned is properly entitled to have this shortfall addressed by way of an adjustment in pay and compensation for the income lost to him as a result of the employer’s refusal to apply the terms of successive Pay Agreements.
However the Court notes that at present the Company is facing extremely difficult trading circumstances resulting in extreme pressures on it capacity to remain in business.
Accordingly the Court recommends that, as soon as the financial and trading circumstances permit the Company increase the workers rate of pay to bring it into line with the rates of pay of similar workers employed in comparable employments.
The Court further recommends that the parties enter discussions at that time with a view to agreeing a compensatory lump sum in discharge of the cumulative amounts owed to the worker as a result of the employer’s failure to apply the terms of successive National Agreements to the pay of the worker concerned.
In the interim the Court recommends that the Company take steps to restore the worker to full time work as business levels improves.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
12th March, 2013______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.