FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : AURIVO DAIRY INGREDIENTS (BALLAGHADERREEN) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms O'Donnell Employer Member: Mr Marie Worker Member: Ms Tanham |
1. Pay Enhancement.
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 4 October 2017 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 21 March 2018.
UNION’S ARGUMENTS:
3. 1. The affected members are time served qualified craft persons bar one who has received extensive certified technical training. The rate of pay for the craft grade does not adequately represent this grade and lags behind comparators and competitors.
2. The affected members are claiming parity with the electricians on site.
3. The claim for parity with the electrician members is fair and reasonable.
EMPLOYER'S ARGUMENTS:
4. 1. The Company submits that the offer made under the auspices of the WRC was fair and reasonable.
2. If SIPTU had accepted the terms of this offer coupled with the application of the company's 2% general pay increase for January 2018 the group of workers could have benefitted from a 14% increase to their basic pay over a nine month period from April 2017 to January 2018.
3.The proposed enhancements to fitters pay ratesstand up well in comparison with similar roles in other unionised regionally based companies.
RECOMMENDATION:
The issue in dispute is the rate of pay for maintenance fitters in Dairy Ingredients. It was agreed by both parties that this issue while still coming under the scope of the main pay agreement would be dealt with as a separate issue. The parties under the umbrella of the WRC advisory service engaged in a process which produced a number of outcomes one of which was a proposal to enhance pay for the maintenance team members linked to achieving efficiencies in the Department.
The proposal put forward by the company subject to agreement on maintenance metrics was that the basic hourly rate would be increased in two phases;
Phase 1 by €1.20 per hour from the date of the agreement (April 2017) to 15.50 per hour
Phase 2 subject to review in performance in January 2018 a further increase of 50 cent per hour bringing the rate up to €16.00 per hour.
This proposal was balloted on and rejected by the Unions members.
Union’s case
The members have engaged with the maintenance improvement process and training which commenced in November 2016. They believe this should be reflected in any pay increase. It is their contention that their pay rate lags significantly behind craft rates locally and in support of that contention they cited a number of comparators. They are seeking pay parity with the electricians on site who are also craft workers. The electricians current rate is €19.38 per hour which would equate to an increase of €4.80 per hour.
Employer’s case
The Employer acknowledges that the workers have engaged positively with the changes. They believe the proposal put forward was reasonable and, coupled with the 2% general pay increase in January 2018 if it had been accepted would have provided a 14% increase in their hourly rate. The Company operates in a high volume/low margin commodity industry where pay comparisons made to other Dairy companies with different product mix are irrelevant.
The Company identified a number of comparators which they believe demonstrate that their rates stand up well in comparison with similar roles in other unionised regionally based companies. The increases proposed come at significant cost and any greater enhancement could have a knock on effect across the wider group.
The Court having considered the submissions of both party and listened carefully to the oral submissions on the day recommends a phased increase in the hourly rate as follows;
- Phase 1 an increase of €1.50 on the hourly rate with effect from 1stApril 2017
Phase 2 an increase of 70 cent on the hourly rate from 1stJanuary 2018
The Court so recommends.
Signed on behalf of the Labour Court
Louise O'Donnell
9 April 2018______________________
MNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Neville, Court Secretary.