FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IRISH LIFE FINANCIAL SERVICES - AND - UNITE THE UNION DIVISION : Chairman: Mr Hayes Employer Member: Ms Cryan Worker Member: Mr McCarthy |
1. Hearing arising from LCR 20767
BACKGROUND:
2. This case concerns a dispute between Management and the Union in relation to proposed changes to terms and conditions of employment. The matter was initially heard by the Court in April 2014 (LCR 20767 refers). The Court's Recommendation which issued on the 15th May 2014 provided that the parties enter into negotiations under the auspices of the Labour Relations Commission if necessary with a view to reaching agreement within a twelve week period. Any outstanding issues could then be referred back to the Court for a definitive Recommendation.
The dispute was not resolved at local level and was the subject of further conciliation at the Labour Relations Commission. As agreement was not reached the matter was referred to the Labour Court on 25th July 2014 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 29th September 2014.
The following is the Court's Recommendation:
RECOMMENDATION:
The Court has carefully examined the submissions of both parties to this dispute. As a general principle the Court takes the view that agreements in place should be honoured by both sides until they are changed by agreement or proposed changes processed to finality through agreed procedures. In that context the Court Recommends as follows: -
Pay Claim
The Court recommends that the pay of the staff affected be increased by 2% with effect from 1 April 2014for a period of 12 months.
Increments
The Court notes that the Union is committed to engaging with the Company with a view to reaching agreement on a new pay structure for all staff. In that context the Court recommends that the Company, in line with normal practice, apply one increment to staff that have not reached the max of their current scales. Pay levels should move in line with the new agreed structure from 1 April 2015 onwards.
Profit Share Scheme
The Court notes that the Company cannot continue with the profit sharing scheme that was agreed between the parties in 1994. The Court also notes that the scheme has not been in operation since the Company was taken under the control of the Minister for Finance following the crisis that affected the Irish Financial System. Accordingly the Court takes the view that Union’s claim for a buyout of the bonus at the rate of 3 times its annual value is without merit. However some compensation for the permanent elimination of the agreed bonus is warranted. In that context the Court recommends that the Company pay the staff affected the sum of €1,500 in two moieties in full and final settlement of this matter. The payments should be made at Christmas 2014 and on 31 March 2015.
Additional Company Day
The Court recommends that the Company’s offer as outlined to the Court be accepted by the Union.
New Employees
The Court notes the Company’s assurances that the proposed terms and conditions of employment for new employees will not apply to existing staff members.
The Court makes this recommendation in full and final settlement of the matters before it.
The Court notes the Union’s and Management’s commitments to put the terms of the Recommendation to their respective principals for consideration and decision.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
3rd October 2014______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.