FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : THERMO KING GALWAY (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - UNITE DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Marie Worker Member: Ms Tanham |
1. Pay Increase
BACKGROUND:
2. This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 25 July 2016 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 12 October 2016.
UNION’S ARGUMENTS:
3. 1. The company is extremely profitable achieving record growth rates over the last number of years.
2. Significant levels of labour cost savings without any loss to output on key product lines.
EMPLOYER'S ARGUMENTS:
4. 1. During a time when other companies were not implementing pay increases, the company continued to improve pay.
2. The company are challenged to retain market share against improving external competition.
RECOMMENDATION:
The matter before the Court concerns the Union’s claim for an increase in pay of 7% per annum over three years commencing on 1stApril 2016. The Union maintain that the company which is part of the Ingersoll Rand multinational group is profitable, and the Galway plant has achieved record growth levels in sales over the last number of years and has achieved significant levels of labour cost savings without any loss to output on key product lines.
The Company rejected the claim, stating that it had continued to pay increases during the course of the recession and that concession of the Union’s claim could jeopardise the future of the plant, as the Company was facing a number of challenges and it was imperative that it remains competitive to ensure the sustainability of the plant. It held that the job security of all employees was dependent on its ability to continue to complete successfully against other sites in the Ingersoll Rand group.
Negotiations have been ongoing between the parties on a number of items including (i) amalgamation - the removal of 22 departmental boundaries within production to create three main value streams and three support areas; (ii) start times – the creation of one single start time for employees and (iii) job evaluation – union representatives sought updating of the current Job Evaluation system. The issue of a pay increase was added to the negotiations due to the impending expiry of the pay agreement. This resulted in a recommendation from the Workplace Relations Commission to improve pay plus a lump sum payment once amalgamation and the new early start times were implemented. However, the proposals were not balloted upon as the workers objected to the matter of a pay increase being included with the original three items.
The Company offered 6% over three years, as follows:
- •6 month pay pause from 1stApril 2016
•2% from 1stOctober 2016
•2% from 1stOctober 2107
•2% from 1stOctober 2018 to expire on 31stMarch 2019
•30 minute unpaid break on evening shift
•Combining of trade union Convenor and Secretary roles
Having considered the submissions of both parties the Court recommends that pay should be increased as follows:-
- 2% effective from 1stApril 2016 for 12 months
2% from 1stApril 2017 for 12 months
2% from 1stApril 2018 for 12 months
The Court notes that further negotiations are underway between the parties on the Company’s change agenda, and as confirmed by the Union, there is a pay claim attached to these negotiations. The Court recommends that the two matters included in the Company’s proposals above should form part of those negotiations, namely (i) 30 minute unpaid break on evening shift and (ii) combining of trade union Convenor and Secretary roles.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
LS______________________
1 November 2016Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Louise Shally, Court Secretary.