FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IMPERIAL HOTEL (CORK) LIMITED TRADING AS IMPERIAL HOTEL (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. Sick Pay Scheme - Hotel's proposal to reduce sick pay entitlements.
BACKGROUND:
2. This dispute concerns the Hotel's proposal to change the terms of the sick-pay scheme. The current scheme is not financially viable as the hotel is experiencing trading difficulties in common with others in the sector. 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 the31st January, 2014, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 26th March, 2014.
UNION’S ARGUMENTS:
3. 1.The sick pay scheme as it currently stands is not abused.
2. The amount of money the Company would save by changing the scheme would be insignificant.
3. The Union asks the Court to recommend continuation of the status quo.
COMPANY'S ARGUMENTS:
4. 1. The Company can no longer afford the sick pay scheme in its current form.
2. The Company has endeavoured, without success, to negotiate a revised sick pay scheme.
3. Failure to agree a revised sick pay scheme will threaten the security of employment of staff.
RECOMMENDATION:
Having considered the submissions of both parties to this dispute the Court finds that the current financial and trading circumstances of the Company necessitate significant adjustments to the cost base including a restructuring of the current sick pay scheme.
In that context the Court recommends that the parties engage, under the auspices of the LRC if necessary, with a view to reaching agreement to substantially reduce the cost of the scheme.
All matters outstanding after six weeks from the date of this Recommendation should be referred back to the Court for a definitive Recommendation.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
3rd April, 2014______________________
CCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ceola Cronin, Court Secretary.