FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ADVANCED ENVIRONMENTAL SOLUTIONS LIMITED TRADING AS (AES WASTE MANAGEMENT IRELAND) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. Harmonisation of pay rates and Conditions of Employment
BACKGROUND:
2. This case concerns a dispute between the Company and Union in relation to the harmonisation of pay rates and conditions of employment. The Union contends that its members are in receipt of lower pay rates and less favourable conditions of employment than other employees. Management's position is that it cannot sustain the cost of the Union's claims given its increased operating costs, reduced margins and its current loss making situation.
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 the Industrial Relations Act, 1990. Labour Court hearings took place on 26th March 2015 and 18th September 2015
UNION'S ARGUMENT:
3 1 It is unacceptable that the Company's employees are treated significantly less favourably than other employees. The Union considers its claims for the harmonisation of pay rates and other conditions of employment to be fair and reasonable and in line with comparable employments.
COMPANY'S ARGUMENT:
4 1 The Company is experiencing a further deterioration in its trading circumstances, its costs have increased and its margins have reduced significantly. In the current circumstances management cannot sustain the costs associated with the Union's claim. It has put forward proposals to resolve the dispute despite its worsening financial position but cannot concede the claim as presented.
RECOMMENDATION:
The Union submitted a claim for harmonisation of rates of pay and conditions of employment following the Company’s takeover of a number of similar operations in accordance with theEuropean Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003. Due to the protection granted under the Regulations to those employees involved in the takeovers, this has resulted in AES employees having different rates and terms and conditions of employment to some of their co-workers.
The Union sought the following:-
- •Rates of pay, retrospective to 26thFebruary 2014:-
- •Articulated Driver: €14.50 per hour
•Rigid Truck Driver: €14.00 per hour
•Truck Helper: €11.00 per hour
•Yard Helper: €10.00 per hour
- •Articulated Driver: €14.50 per hour
The Company stated that it was in a loss-making situation and is facing a number of additional challenges, among which are new regulations, due to take effect in July 2016. It submitted to the Court that it is not opposed to harmonisation of pay rates, however, it could only do so if it did not add additional costs to its payroll. Proposals were submitted by the Company to address the Union’s claim, however, these were not accepted by the Union. The Company sought to “park” claims for the introduction of pension and sick pay schemes due to the financial difficulties facing its business.
Having considered all aspects of this claim the Court recommends the following :-
- •Rates of pay, effective from 1stJanuary 2016:
- •Articulated Driver: €13.50 per hour
•Rigid Truck Driver: €13.00 per hour
•Truck Helper: €10.25 per hour
•Yard Helper: €9.75 per hour
- •Articulated Driver: €13.50 per hour
Signed on behalf of the Labour Court
Caroline Jenkinson
8th October 2015______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.