FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ROSDERRA IRISH MEATS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Foley Employer Member: Mr Marie Worker Member: Ms Tanham |
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 28 February 2017 in accordance with section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 17 May 2017.
UNION’S ARGUMENTS:
3. 1. A wage increase is justified without the requirement to increase productivity.
2. The Company has enjoyed the benefits of a pay freeze and cost reduction for the past eight years.
3. The Union is seeking a pay increase of 8% over a 24 month period made retrospective to February 2016.
EMPLOYER'S ARGUMENTS:
4. 1. The Company faces an extremely difficult trading environment, in particular with the UK’s decision to leave the European Union.
2. The Company has not reduced basic pay or full standard productivity bonus during the recession years.
3. A pay increase without any element of self-financing would be detrimental to the business.
RECOMMENDATION:
The Court has given very careful consideration to the written and oral submissions of the parties.
The Court notes the fact that pay rates have been at the current level without alteration since 2008. The Court also notes the concerns of the company as regards site effectiveness and competitiveness. The Court has not been provided with detailed analysis as regards the financial operation of the site or the impact of wage costs on the overall cost structure of the facility and its competitive position.
Taking account of all of the circumstances of the matter the Court recommends that pay increases should apply as follows:
An increase of 2% should be applied with effect from 1stJanuary 2017,
and
a further increase of 2% should apply with effect from 1stJanuary 2018.
Separately, and in the interest of overall site efficiency and competitiveness the parties should engage to find agreement if possible on matters associated with the afternoon break, overtime working with particular reference to Friday afternoon working, the introduction of a four day work pattern and annual leave at Christmas. Wherever agreement can be found on such matters the financial value of the change should be shared between the parties separately to the increases outlined above.
The Court so recommends.
Signed on behalf of the Labour Court
Kevin Foley
22 May 2017______________________
MNChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Neville, Court Secretary.