FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : MARKS AND SPENCER (IRELAND) LIMITED (M&S) - AND - MANDATE SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Ms Cryan Worker Member: Mr Shanahan |
1. Hearing Arising From LCR 20663
BACKGROUND:
2. This is a Labour Court hearing arising from LCR20663. The parties are in dispute in relation to proposals tabled by Management that are designed to achieve cost savings across its business operations. Management proposed changes to the pension scheme, the Christmas Bonus and the number of staff employed as section managers. It also proposed the standardisation of Sunday and Public Holiday premium payments.
The Unions acknowledge the difficult trading position of the Company and the economic climate but cannot accept reductions to their members established terms and conditions of employment.
The dispute was not resolved at local level and was the subject of a number of conciliation conferences under the auspices of the Labour Relations Commission. As agreement was not reached the matter was referred to the Labour Court in accordance with Section 26(1) of Industrial Relations Act, 1990. A Labour Court hearing took place on the 10th February 2014.
UNIONS ARGUMENTS:
3 1Pension Scheme:The Unions are seeking compensation for the loss of the DB Scheme. They are also seeking a higher employer contribution to the Defined Contribution Scheme.
2Christmas Bonus:-The Unions do not accept that the Christmas Bonus should be discontinued. It is paid to reflect the additional work and performance of the workforce at the busiest time of the year. They argue that the removal of the bonus as proposed would seriously reduce their members incomes at a very expensive time of the year.
3 Reduction in Number of Section Managers:The Unions are seeking to have the reduction in the number of Section Manager posts achieved on a voluntary basis. It further argues that those wishing to remain in employment should be facilitated in doing so and redeployed within the organisation.
4Sunday/ Public Holiday Premium Payments:- The Unions object to the proposed changes. They argue that a minority of the workforce are in receipt of the higher premium for working on Sunday and that the cost of the proposed changes to those members of staff is disproportionate.
MANAGEMENT'S ARGUMENTS:
41Pension Scheme:The Company has offered generous additional funding to the DB Scheme and is advised that its proposals for the DC scheme are very competitive.
2 Christmas Bonus and Sunday/ Public Holiday Premium Payments:The Company recognises the losses that will be incurred through the changes to Premium Payments and loss of the Christmas Bonus but it can no longer meet the additional costs associated with these payments. In an attempt to resolve the matter Management has offered very generous compensation packages in return for the changes proposed.
3Reduction in Number of Section Managers:Management contends that voluntary redundancies will apply but if oversubscribed seniority in the location will be used to achieve the required savings
RECOMMENDATION:
Having carefully considered the extensive written and oral submissions of both parties to this dispute the Court, mindful of their commitment to the preservation of sustainable employment, recommends as follows:
Pension Scheme
The Court recommends that the Union accept Management’s proposals as outlined to the Court.
Christmas Bonus
The Court recommends that the Christmas Bonus for 2014 be reduced by 50% for all categories of staff. The Court further recommends that the parties meet in March/April 2015 to review the trading and business circumstances of the Company with a view to protecting employment levels and reaching an agreement on bonus arrangements for 2015 and subsequent years.
Sunday Premium
The Court recommends that staff members that are contractually committed to work on Sunday should retain their current premium payment.
The Court further recommends that all other staff should accept Management's proposals as outlined to the Court.
Reduction in Number of Section Managers
The Court recommends that the Company and the Union engage with a view to reaching agreement on a process by which the number of Section Managers will be reduced by 37 through a voluntary redundancy process that includes provision for re-deployment and reassignment in order to guarantee continued employment for those who wish to remain at work while at the same time meeting the business and operational needs of the Company.
Public Holiday Premium
The Court recommends that Management’s proposals as outlined to the Court be accepted by the Unions concerned.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
14th March 2014______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.