FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : KILKENNY LIMESTONE (REPRESENTED BY CONSTRUCTION INDUSTRY FEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Haugh Employer Member: Mr Marie Worker Member: Ms Treacy |
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 the 6thApril 2018 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 16thAugust 2018.
UNION’S ARGUMENTS:
3. 1. SIPTU wrote to the Company regarding a pay rise for 2016 and 2017. The Company undertook to produce a 5-year plan.
2. SIPTU welcomes the harmonisation of the terms and conditions within the three quarries but are faced with issues regarding long service payments to workers. 47% of the workforce will not quality for the bonus payment.
3. SIPTU are seeking a further 2% pay increase for workers for the years 2016 and 2017. 3% for 2018 and 3% for 2019.
EMPLOYER'S ARGUMENTS:
4. 1. The Company outlined that when the new owner took over the three quarries, one of them was in receivership in order to boost morale employees were given an 11% pay increase.
- 2. An outstanding Labour Court recommendation from 2011 was renegotiated with the new owners and SIPTU. In 2014 employees received an 8.5% to 10.5% pay increase, dependent on grade, 5 paid sick days and increase of 1 days annual leave.
3. The Company states that it is suffering financial loss and that the only proposal it can make at this time is the harmonisation of benefits between the three quarries. A presentation made to the employees in 2017 received a positive response. Harmonisation would cost €74,000 across the three quarries which is the equivalent to a 2.5% pay increase to all workers.
RECOMMENDATION:
Background to the Dispute
There are three elements to the within claim submitted to the Court by the Union on behalf of its members employed across the Respondent’s three quarries (Old Leighlin Limited, Kellymount Limited and Holdenstrath Limited) Those claims are: (i) a pay claim of 2% for 2016; 2% for 2017; 3% for 2018 and 3% for 2019; (ii) a claim for the inclusion of premium payments in the calculation of overtime payments for 28 Workers who work shift in Kellymount and Old Leighlin; and (iii) what the Union characterises as ‘Bad Weather Days payment’ to cover three days on which member were placed on temporary lay-off due to inclement weather during the Winter of 2017-18.
(i) The Labour Court issued a comprehensive Recommendation (LCR21364) dated 12 December 2016 which was accepted by both Parties and which addressed pay rates, shift patterns and shift rates, and allowances of the Workers concerned. Nevertheless, there remained certain aspects of the Workers’ terms and conditions that had not been harmonised across the three quarries: service pay, pension, death in service and sick pay schemes. The Respondent formulated its Harmonisation Proposal with a view to addressing those discrepancies during the course of 2018. It has costed the implementation of that proposal at 2.5% of total payroll costs. The Company’s regards the harmonisation of Workers’ terms and conditions across its three sites as a priority and should take precedence over any general pay claim.
(ii) The Respondent submits that concession of this claim would put the majority of its Workers at a disadvantage as they would continue to receive overtime payments calculated on the basic rate whereas the 28 workers who would benefit from the measure would be in receipt of a higher rate of pay for doing the same work at the same time.
(iii) This claim relates to the extreme weather events, associated with Storm Emma, that occurred between 28 February and 2 March 2018. All the Respondent’s Workers were placed on temporary lay-off on Thursday 1 March and Friday 2 March 2018. Some Workers had attended for work on Wednesday 28 February but were sent home as the quarries were closed from 11.00 a.m. Those who turned up for work were paid in full for the day. Workers due to attend on the evening shift that day were placed on temporary lay-off that day. The Respondent submits that it is established custom and practice in the industry that temporary lay-off is unpaid.
Recommendation
The Court does not recommend concession of claims (ii) and (iii).
The Court is cognisant of the costs currently being incurred by the Respondent in implementing its Harmonisation Proposal. Therefore, the Court, does not recommend a general pay increase during 2018. The Court does, however, recommend that an increase of 3% be applied to the Workers’ basic pay with effect from 1 January 2019.
The Court so recommends.
Signed on behalf of the Labour Court
Alan Haugh
8 October 2018______________________
THDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Therese Hickey, Court Secretary.