FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CAHERCALLA COMMUNITY HOSPITAL AND HOSPICE - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Haugh Employer Member: Mr Murphy Worker Member: Mr McCarthy |
1. Restoration of 3% Pay Cut and Resumption of Incremental Increases.
BACKGROUND:
2. The case before the Court concerns a dispute between the Employer and the Union on behalf of its members in relation to restoration of pay and incremental increases.The 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 9th February 2017 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 10th May 2017.
RECOMMENDATION:
Background to the Dispute
The Community Hospital experienced financial difficulties in 2013. With the assistance of the then Labour Relations Commission (“LRC”), Management and the Union reached an Agreement to implement cost reductions. As part of the agreement, the Workers accepted a 3% reduction in basic pay rates with effect from 1 January 2014. They also agreed to a freezing of increments from that date. The Agreement provided for a reversal of the pay cuts from 1 January 2016.
The Union has attempted on a number of occasions to engage with Management since January 2016 with a view to agreeing a timeline for the restoration of the pay cuts and the resumption of increments, as per the terms of the 2013 LRC Agreement. A number of meetings took place under the auspices of the Conciliation Service of the WRC in the course of which Management agreed to allow Ms Lorraine Mulligan of SIPTU conduct a financial audit of its accounts with a view to assessing the Hospital’s ability to fund the restoration of pay to the Workers. Ms Mulligan concluded that “the company’s finances are in an adequate position to accommodate pay restoration on a gradual basis through negotiation”. Management made a number of offers of phased partial restoration of pay each of which was rejected by the Union and met with a counter-offer. In any event, the Parties failed to reach agreement at Conciliation and the matter was referred to the Court.
Recommendation
The Court, having carefully considered the Parties’ submissions, is of the view that pay restoration element of the Agreement entered into by the Parties in 2013 must be honoured. The Court notes the Union’s willingness to accept that that restoration can be implemented over a reasonable period of time.
The Court, therefore, recommends:
•Pay restoration in 3 stages – 1% as and from 1 July 2017; 1% as and from 1 January 2018; & 1% as and from 1 July 2018;•Resumption of increments with effect from 1 January 2019;
•Payment of a once-off voucher of €200.00 for full-time employees (pro-rata for part-time employees, as per the formula previously used at the hospital) at Christmas 2017.
The Court so recommends.
Signed on behalf of the Labour Court
Alan Haugh
19th May 2017______________________
SCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Sharon Cahill, Court Secretary.