FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GLANBIA - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms O'Donnell Employer Member: Mr Marie Worker Member: Ms Treacy |
1. Pay Parity
BACKGROUND:
2. The case before the Court concerns a dispute between the Employer and the Union on behalf of its members employed in the Company's Lough Egish plant. The dispute relates specifically to a request from the Union for efforts to be made on behalf of the Company to take steps toward pay parity for Workers in Lough Egish in comparison with other plants owned by the Company. As agreement was not reached, the dispute was referred to the Labour Court on the 5th December, 2017 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 25th January, 2017. The following is the Recommendation of the Court:
UNION'S ARGUMENTS:
The Union informed the Court that higher rates of pay for General Operatives existed in the Company's plants in Virginia, County Cavan, Ballyragget, County Kilkenny and Ballytore, County Kildare. In light of the Company's profitability, the Union argued that it would not be unreasonable for efforts to be made on behalf of the Company to take steps to address the disparity in pay between it's Lough Egish plant and the other, aforementioned sites. The Union also stated that it believes the work being done in Lough Egish to be similar in nature to the comparator plants in Virginia, Ballyragget and Ballytore.
COMPANY'S ARGUMENTS:
The Company stated that the Lough Egish plant is a new venture for the Company and that, since it's opening in 2014, it has faced various challenges such as low orders and slow take off. As such, the Company informed the Court that it does not believe it is in a position to increase it's cost base through a pay increase until the business has achieved profitability.The Company also informed the Court that it has been implementing the pay increases afforded to all Workers in the Company through national negotiations, this national agreement came into effect in 2015 with increases totalling 15% scheduled up to and including January 2019.
RECOMMENDATION:
The issue in dispute between the parties is that the Union are seeking pay parity between general operative staff working in the Glanbia Lough Eglish plant and general operative staff working in the Glanbia site based in Virginia Co Cavan. There is currently a five euro an hour gap between the rates. The Union are seeking to close the gap on a phased basis. Management have rejected the claim on the basis that a national pay agreement is in place for the Glanbia group.
Union position
Glanbia opened the Lough Eglish plant in 2014. The rates of pay inclusive of shift pay are significantly lower than other Glanbia plants. In 2017 the Union raised this issue with the Company and asked that they consider an increase in pay to begin closing the gap. The Union acknowledges the national pay agreement but this does not assist in closing the pay gap that exists. The Union are looking to engage with the employer to close the pay gap over time.
Employer’s position.
The Lough Eglish plant is a new venture that is trying to establish its self in a tough market environment. Although it is part of the Glanbia family each business unit is expected to be self-sufficient and it cannot rely on the wider group to fund a plant specific pay rise. It is the employer’s position that until such time as the business achieves profitability it is not tenable for them to increase their cost base any further. However, they would be prepared to explore a mechanism for recognising enhances performance and reward.
Discussion
The Employer accepts that there is a differential in the rate but they stressed that there is no national agreed rate for general operatives in the Glanbia group. They pointed to the fact that in the Union submission they had highlighted four different rates in four different plants. The Employer stated that they would be open to engaging on an enhanced performance reward system when the company had built a track record of performance. The Union indicated that their aim is to reduce the pay gap over time and that they were not opposed to exploring an enhanced performance reward system.
The Court having considered the detailed submissions of both parties and the oral submissions made on the day recommends that parties engage in discussions in relation to an enhanced performance reward system. These discussions should be conducted locally in the first instance and if necessary through the Workplace Relations Commission (WRC) thereafter and focus on how best to address the requirements of the Lough Eglish plant and the aspirations of the Union to close the pay gap with other plants could be achieved under such a system. In the event that the parties cannot reach agreement on specific elements of such an system within 6 months from the date of this recommendation the parties may, following engagement at the WRC, refer those elements back to the Court for final determination.
The Court so recommends.
Signed on behalf of the Labour Court
Louise O'Donnell
JD______________________
5 February 2018Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Deegan, Court Secretary.