FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BURNSIDE HYDRACYL (BALLYMOON) LTD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Doyle Worker Member: Mr Shanahan |
1. Pay Claim.
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 23 May 2017 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 27 June 2017.
UNION’S ARGUMENTS:
3. 1. The Union is seeking a 7% increase for their members over two years.
2. The Union contends that the Company can afford to pay the increase sought.
3. The members feel that their contribution towards the introduction of LEAN manufacturing merits this type of increase.
EMPLOYER'S ARGUMENTS:
4. 1. The Company wage bill is currently running at 33% of turnover where it needs to be around 28%.
2. The Company did not implement any pay reductions during the course of the recession and has implemented pay increases from November 2013.
3. It is essential that the company gets full co-operation in the LEAN development programme.
RECOMMENDATION:
The issue before the Court concerns the Union’s claim for an increase in pay of 7% over two years. In response to the claim the Company offered 2% from 1stJanuary 2017, 1½% from 1stJanuary 2018 and 1½% from 1stJanuary 2019, conditional on full co-operation with previously agreed productivity deals and LEAN developments. The details of its offer were outlined in a letter from the Company to each employee dated 13March 2017. This offer was rejected by the Union, however, it confirmed its commitment to fully co-operate with the productivity/LEAN developments sought.
Having considered the submissions of both parties, the Court recommends that the Company’s pay offer as outlined in the letter dated 13March 2017, should be increased to 2% from 1stJanuary 2017, 2% from 1stJanuary 2018 and 2% from 1stJanuary 2019, and the parties should jointly agree to engage further on the most efficient means of ensuring that the productivity/LEAN system works to the maximum effect by all in the Company which it is accepted is in everyone’s interest.
The Court so Recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
17 July 2017______________________
MNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Neville, Court Secretary.