Complainant

Respondent

Anonymised Parties

A General Operative

A Fire Proofing Company

Act

Dispute Reference No.

Date of Receipt

Dispute seeking adjudication by the Workplace Relations Commission under section 13 of the Industrial Relations Act, 1969

CA-00018549-001

17/04/2018

The worker was employed by the respondent as a general operative since 6th of February 2006. He is claiming he was not being paid in accordance with the Sectoral Employment Order (SEO) for the Construction Sector. He said that he is paid €15.79 per hour and the rate is €17.04.

SIPTU said that in late 2017 the worker contacted them as he had a query in relation to his rate of pay. It was established that his rate of pay was below the rate as laid out in the SEO for the construction industry enacted on the 19th October 2017. The union official took the matter up with the company and a meeting was arranged.   The company advised the worker that they were in the process of dealing with the issue. He was unhappy with the progress and referred the matter to the WRC.

The worker has now left the company. Prior to today’s hearing the company through their solicitors made an offer of a financial settlement. The worker believes that the financial offer does not fully address his loss. He believes that he should be at gross rather than nett pay. The union accepts that the calculation of the back pay is correct.

The Sectoral Employment Order for the Construction took effect onthe19th of October 2017. The Managing Director met with all the employees in November 2017 to discuss the SEO and proposed implementing it on a staggered basis with 50% of the differential taking effect immediately and a further 50% taking effect in Summer 2018 as an immediate increase would result in significant costs and hardship for the company. As a subcontractor the company was not able to renegotiate contracts that had already been negotiated.

All the employees were given an opportunity to comment on the proposals and all agreed and there was no formal exemption sought from the Labour Court pursuant to the Labour Relations (Amendment) Act 2015 for this reason.

The complaint referred a dispute about the matter to the WRC claiming that he is entitled to the hourly rate of €17.04 pursuant to the SEO category 1 worker.

In response the company, in a letter to the workers’ union, have offered to pay the rate back dated to the 19th October 2017. The letter confirmed that the sum due to the worker is €1,229.21.

During the hearing of the dispute the worker said that he disputes the rate because he should have been paid at the Grade A rate instead of the Grade B rate as he has 12 years’ experience. I note that the worker has not raised this dispute internally with the employer before this hearing. Therefore, I cannot hear this dispute.

The union concedes that there is no dispute about the figures for the back dated pay. The worker said that he rejects the sum because he believes that he should be paid the gross amount as he has now left the employment.

I recommend that the employer pay the worker the sum of €1,229.21 nett (1,942.02 gross) as it is agreed that this is the amount of the back dated pay.

I recommend the worker accept the amount. There is a legal obligation for an employer to deduct taxes from any wages paid to an employee.

I recommend the employer pay the worker €1,229.21 nett and I recommend the worker accepts same.

Industrial Relations, SEO for Construction, back dated pay nett or gross.