FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TOYOTA LOGISTICS SERVICES IRELAND (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Ms Doyle Worker Member: Ms Tanham |
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 2.5% pay increase for 12 months retrospective to January 2014 on the basis that there has been no increase in pay since 2009 despite the increased flexibility of the workforce over the last number of years and co-operation with the ongoing development of the Company. Management's position is that it cannot afford the cost of the Union's claim as it has significantly increased bonus payments in recent times and cannot agree to an increase that will erode its cost competitiveness.
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 22nd September 2014 in accordance Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 18th November 2014.
UNION'S ARGUMENT:
3 1 The workers have not received a pay rise since 2009 despite ongoing co-operation with management across all levels of the Company's operations. In addition management initiated other cost caving measures across the Company and refused to honour pay increases due under National Wage Agreements. The 2.5% pay increase being sought was due to be paid in 2009 and reflects the final phase of the Towards 2016 National Wage Agreement prevailing at that time.
COMPANY'S ARGUMENT:
4 1 The earnings of the workers have increased significantly over the past number of years as management has significantly increased Kaizen bonus payments. The Union's claim for a 2.5% increase in basic pay is currently unsustainable from a cost perspective. In an attempt at resolution management has offered a pay increase of 0.8% which was rejected.
RECOMMENDATION:
Having carefully considered the extensive written and oral submissions of both parties to this dispute the Court recommends that the Company increases the basic pay of the workers concerned by 2% for a period of 12 months with effect from 1 January 2014.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
17th December 2014______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.