FULL RECOMMENDATION
SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : AN POST - AND - GROUP OF WORKERS (REPRESENTED BY COMMUNICATION WORKERS UNION) DIVISION : Chairman: Mr Foley Employer Member: Mr Murphy Worker Member: Ms O'Donnell |
1. Parcel Productivity Allowance.
BACKGROUND:
2. This matter relates to the payment of a Parcel Productivity Allowance to certain Managers in the Company who in the past worked in the former parcel service of SDS. The Company contend that these Managers retain the Allowance in error. The Communication Workers Union is seeking the retention of the Allowance on a personal-to- holder basis for all staff that were in receipt of the payment after they were promoted.
On 23 December 2016, the Union and the Company jointly referred the dispute to the Labour Court in accordance with Section 20(2) of the Industrial Relations Act, 1969 and agreed to be bound by the Court's Recommendation.
A Labour Court hearing took place on 10 March 2017.
UNION'S ARGUMENTS:
3. 1. The Labour Court has found in favour of the claim for one worker that has since retired.
2. The existing Managers already in receipt of the Allowance should retain it.
3. All Managers that had the payment withdrawn should have it restored retrospectively.
EMPLOYER'S ARGUMENTS:
4. 1. The Company is attempting to regularise treatment of the Allowance for its Managers.
2. It is important for the Company to maintain its adherence to fundamental starting pay regulations. The Company accepts that errors occurred resulting in overpayment to certain Managers but believes that correct procedures should be the foundation of any standardisation.
3. The Company offered to buy out the Allowance in the normal way and is not intent on recovering any monies owed from the Managers in receipt of the allowance.
RECOMMENDATION:
The matter before the Court has been the subject of considerable engagement between the parties over an extended period of time.
The Court notes that the normal approach to promotion arrangements in An Post is the standard Public Service ‘starting pay on promotion’ methodology. The Court notes that there has been a less than consistent approach taken in relation to the Allowance at issue in this case but the Court cannot support a deviation from the standard Public Service ‘starting pay on promotion’ arrangements.
Noting that it was agreed at a conciliation conference in 2009 that the matter would not be pursued and noting that retention of such payments on promotion is ‘non-standard’, the claim to restore the payment to all Managers previously in receipt of it is not accepted by the Court.
The Court recognises that An Post has been attempting to regularise matters for a considerable period of time.
The Court recommends that the Allowance being paid to eleven Managers should be bought out on a compulsory basis. In the exceptional circumstances of this case the buy-out should be at the rate of 2.5 times the annual value of the Allowance.
This buy-out of the Allowance in this manner is limited to those Managers who are currently in receipt of the Allowance and is in full and final settlement of all claims associated with cessation of the Allowance for Managers.
Signed on behalf of the Labour Court
Kevin Foley
30 March 2017______________________
MNChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Neville, Court Secretary.