FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PROCTOR & GAMBLE LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Marie Worker Member: Mr McCarthy |
1. Loyalty Payment
BACKGROUND:
2. This dispute concerns the Worker's claim for a loyalty payment. This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 25th of May, 2016, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 15th of August, 2016.
UNION'S ARGUMENTS:
3.1. The Employer is a global multinational that could easily afford to make a satisfactory once off gratuity to it's Nenagh staff to acknowledge their contribution.
2. Members feel that €2,500 per year of service is a fair loyalty payment from the Employer.
EMPLOYER'S ARGUMENTS:
4.1 Employee's loyalty has already been rewarded over the years.
2. There is no contractual or statutory entitlement to a one-off loyalty payment for staff in a transfer situation, nor is there a custom, practice or policy in the history of Proctor & Gamble.
RECOMMENDATION:
The Court notes the profound effect on the workforce of the proposed transfer of ownership of the business. The Court also notes the need for full co-operation by the workforce to efficiently bring about that transfer. Finally the Court notes the precedent established in the 2008/09 "Downsizing Agreement" in which compensation for co-operation with change was conceded by the Company.
In that context and in return for full co-operation with the transfer of the business to the new owners the Court recommends that the Company pay the following amounts to the affected workers
Staff with less than five years’ service €5,500
Staff with five but less than 15 years’ service €8,000
Staff with 15 or more years’ service €12,500
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
31st August 2016______________________
JKDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jason Kennedy, Court Secretary.