FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GALCO STEEL LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Mr McCarthy |
1. Pay Claim
BACKGROUND:
2. This case concerns a dispute between the Company and Union in relation to a pay claim. The Union is seeking a 2% pay increase per year over two years. It contends that the workers have incurred significant losses of income over the past number of years and is seeking the pay increase on the basis of the Company's improved trading circumstances. Management contends that discussions did take place on pay increases and bonus payments but not on the terms as sought by the Union.
The dispute was not 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 matter was referred to the Labour Court on 16th September 2014 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 25th November 2014.
UNION'S ARGUMENT:
3 1 The Union's claim is reasonable and should be conceded. Over the past number of years the workers have incurred significant losses of earnings through the imposition of short time working and a reduction in both the Christmas and the Tonnage Bonuses that were previously paid. The Company's trading position has improved significantly and the loyalty shown by the workers over the last number of years should be acknowledged.
COMPANY'S ARGUMENT:
4 1 Management entered into negotiations with the Union on pay increases and the introduction of a performance bonus. The Company offered 3.5% over three years effective from 1st October 2014 and a €400 bonus for 2014/2015 and 2015/2016 depending on Company profitability. Unfortunately the claim as sought by the Union was excessive and could not be conceded.
RECOMMENDATION:
Having considered the submissions of both parties to this dispute the Court recommends that the Company increases its offer to 2% for 12 months with effect from 14th February 2014. The parties should engage in early 2015 on a follow-on agreement in the context of the financial and business circumstances then prevailing.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
8th December 2014______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.