FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : SIEMENS HEALTHCARE DIAGNOSTICS MANUFACTURING LIMITED (DX) SWORDS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - UNITE THE UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. Pay offer for 2012-2014 rejected by ballot.
BACKGROUND:
2. The parent Company is a global corporation which has operated in Ireland for over eighty years providing engineering and technological expertise to generating power plants, large-scale transportation projects and medical imaging systems to hospitals. The Company was established in Swords in 1966 and employs 320 workers there. Following the demise of the national agreement, improvements were introduced so that pay rates would remain aligned with the upper quartile for workers in that sector. The basis for a collective pay increase agreement was proposed by the Company but was rejected at ballot by Union members.
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 23rd November, 2012, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 4th February, 2013.
UNION'S ARGUMENTS:
3. 1. There has been no collective pay agreement in place since the National Wage Agreement expired in January 2010. The Union endeavoured to find a pay agreement that provided for an equal value award for all employees but one that did not jeopardise the future competitiveness of the Company.
2. The Union is seeking a pay structure / formula to be the same for all Employees otherwise whatever is proposed by the Company may also be rejected in another ballot.
COMPANY'S ARGUMENTS:
4. 1. The Company has proposed a formal scheme on collective pay increases which is consistent with Company practice and priorities and complies with the IBEC and ICTU Protocol for the Orderly Conduct of Industrial Relations and Local Bargaining in the Private Sector.
2. The Company's proposal are realistic, reasonable, pragmatic and will maintain the Swords site as a sustainable entity within the Siemens Corporation.
RECOMMENDATION:
The Court has carefully considered the submissions of both parties to this dispute.
Without prejudice to either side’s position on the substantive issue the Court recommends that:-
- In respect of 2012 the Company pay all staff, whose pay is at or above the upper quartile pay range as measured by the standard process used by the Company, a lump payment sum payment equal to 2% of the annual value of their pay. The lump sum should be applied in the manner outlined by the Company in its submission to the Court.
The rate of pay of staff below that level should be increased by way of a 2% rate adjustment with full retrospection to January 2012 separately from any adjustment to pay that may arise out of the application of the market adjustment scheme in operation in the Company.
In respect of 2013 the Company should increase the pay rates of all staff by 2% with effect from 1st January 2013.
In respect of 2014 the Court recommends that the parties engage over the remainder of the year to agree an appropriate pay adjustment commensurate with developments in relevant comparable companies.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
19th March, 2013______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.