FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : GLANBIA CONSUMER FOODS - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Marie Worker Member: Ms O'Donnell |
1. A claim for pay parity.
BACKGROUND:
2. This case concerns a claim by the Union on behalf of 39 members for pay parity with 4 workers who are paid red-circled rates of pay.
The Union has referred this case on behalf of 39 members.
- The Employer said that there is a long established principle that a red-circling rate of pay is to the person and not the job and is done on a personal to holder basis.
On the 20th April 2016 the Union referred the dispute to the Labour Court in accordance with Section 20(1) of the Industrial Relations Act, 1969 and agreed to be bound by the Court's Recommendation.
A Labour Court hearing took place on the 10th June 2016.
UNION'S ARGUMENTS:
3. 1. In August 2014 a claim for pay parity arose with the Belgard Road employees who lodged a claim for pay parity with their 4 colleagues who had transferred from Fonthill to the depot at Belgard Road.
2. The members are performing identical work as their colleagues who transferred from Fonthill.
3. As a result they should be paid at the same rate as their four colleagues.
EMPLOYER'S ARGUMENTS:
4. 1. Following restructuring negotiations with SIPTU in 2013, the Company required a number of redundancies in the Fonthill Depot. Initially a voluntary redundancy package was offered, but this fell short by 4 workers.
2. SIPTU asked the Company to check if there was interest in the voluntary redundancy offer from employees at the Belgard Road depot and 4 staff did volunteer.
3. SIPTU requested that the 4 staff transferring from Fonthill to Belgard Road have their rate of pay red-circled. This was agreed between the Company and SIPTU.
RECOMMENDATION:
The matter before the Court was brought under Section 20(1) of the Industrial Relations Act 1969. The Union submitted a claim on behalf of 39 employees employed at the Company’s Belgard Road plant for pay parity with four employees who are paid red-circled rates of pay.
The use of "red circling" as a means of resolving industrial relations issues is not unusual, and can on occasions result in some Employees earning more income than others doing similar work. In this case the "red circling" arrangement was agreed with the Union involved as part of a voluntary redundancy programme in the Company in March 2013. The Court is satisfied that the red-circling arrangement in this case is in line with the meaning ascribed to it by this Court in AD0010, where the Court held as follows:-
- “The use of "red circling" as a means of resolving industrial relations issues is not unusual, and can on occasions result in some Employees earning more income than others doing similar work. The "red circling" is usually agreed for accepting a change of position or working arrangement. For this reason, it does not justify other employees receiving the same allowance because of any perceived anomaly arising.”
Therefore, having considered the submission of both parties the Court rejects the Union’s claim.
Signed on behalf of the Labour Court
Caroline Jenkinson
CR______________________
16th June, 2016Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.