FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : LUFTHANSA TECHNIK SHANNON LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Ms O'Donnell |
1. Pay claim and improvement in terms and conditions of employment.
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 18 April 2017 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 21 June 2017.
UNION’S ARGUMENTS:
3. 1. There have been no general pay increases for the Workers since 2008.
2. After years of cuts and sacrifices the Workers are seeking a substantial increase to basic pay to recover lost ground.
3. The Company has been profitable for the last four years and the Workers have contributed enormously to the turnaround in the Company.
EMPLOYER'S ARGUMENTS:
4. 1. The Company absolutely cannot afford a general pay increase on top of its current pay system.
2. The Company has made very modest trading profits over the past five years.
3. The Company wants to introduce a remuneration model where employees will have a choice over the combination of pay and benefits which best suits their needs and review the terms of the profit share scheme. This is both fair and reasonable and reflects the current financial and competitive status of the Company.
RECOMMENDATION:
The Court has given careful consideration to the extensive written and oral submissions of both parties to this dispute.
The Court finds that the Union’s pay claim has some merit. Accordingly the Court recommends that pay rates in the Company be increased, as follows:-
1. 2% with effect from 1 January 20172. 2.5% with effect from 1 January 2018
3. The Union commit to full co-operation with normal ongoing change for the duration of the Agreement
4. The Union undertake not to serve or process any other cost-increasing claims for the duration of the Agreement
5. The Agreement to expire on 31 December 2018.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
23 June 2017.______________________
MNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Neville, Court Secretary.