FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PRENCO MANUFACTURING LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms O'Donnell Employer Member: Mr Marie Worker Member: Mr McCarthy |
1. Pay Claim.
BACKGROUND:
2. The case before the Court concerns a dispute between the Employer and the Union in relation to the Union's claim for a pay increase and bonus payment. The Union on behalf of its members is seeking a pay increase similar to that paid to employees in 2017. 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 12th February 2018, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 4th July 2018. The following is the Recommendation of the Court:
RECOMMENDATION:
The issue in dispute between the parties arises from the Union's pay claim. The Union are seeking a similar arrangement to 2017 but with the majority of the increase done by way of basic pay increase and only a small element attached to the bonus arrangement. The Union is seeking a 2.5% pay increase for 2018 with 0.5% to be attainable via the bonus scheme. the Employer rejected this claim on the basis it could not afford it. The final position put by the Employer provided for a 1.5% basic pay increase plus a potential 1% bonus per quarter subject to a profit being recorded at quarter’s end and co-operation with ongoing change.
This proposal was rejected by a ballot of the Workers. It was their view that they have carried the risk attached to the bonus scheme in the previous years and that the risk should now transfer to the Employer. The Employer in making their submission on the day pointed out that an element of the bonus had been paid each of the previous years.
The Court having listened carefully to the party’ submissions recommends as follows:
With effect from 1//1/18, an increase of 2.25% on the basic rate of pay and 0.75 % to be payable in accordance with the bonus scheme.
With effect from 1/1/19, An increase of 2.25% on the basic rate and 0.75% to be payable in accordance with the bonus scheme.
These payments to be contingent on co-operation with normal ongoing change and no further cost increasing claims for the duration of the agreement. The pay agreement to expire on the 31stDecember 2019.
The Court so recommends.
Signed on behalf of the Labour Court
Louise O'Donnell
19th July 2018______________________
SCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Sharon Cahill, Court Secretary.