FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CG POWER SYSTEMS LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Foley Employer Member: Ms Connolly Worker Member: Ms Tanham |
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 1 November 2018 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on 4 January 2018.
UNION’S ARGUMENTS:
3. 1. The Union have pursued a pay claim since April 2016.
2. The Company had previously recognised the claim from July 2016.
EMPLOYER'S ARGUMENTS:
4. 1. An independent financial assessment was undertaken by the Company.
2. The Company offered a pay increase from 1stJanuary 2019 to expire on 31 December 2021.
RECOMMENDATION:
The Court has given careful consideration to the written and oral submissions of the parties.
The Court notes the history of pay negotiations between the parties since April 2016. The Court also notes the corporate history of the employer over that time period. It is clear to the Court that both parties have approached the challenge of securing a pay agreement in good faith at all times since April 2016. Notwithstanding that reality however, pay offers which were made but not accepted have been overtaken by events in the intervening period. As a consequence, the challenge of aligning the good faith expectations of the Trade Union with the reality of the company’s capacity to pay has increased over time.
Taking all matters into consideration and noting in particular the financial position of the employer as verified by the agreed assessment process, the Court recommends as follows:
1.The employer has made an offer of pay increases to apply as follows:- 2% with effect from 1stJanuary 2019
2% with effect from 1stJanuary 2020
2% with effect from 1stJanuary 2021.
Agreement to expire on 31stDecember 2021.
- 2% with effect from 1stJanuary 2019
2.The Trade Union has pursued a pay claim since April 2016 and has, over the period, developed a belief that a pay increase dating from 1stJuly 2016 was achievable. The Court, while accepting that the financial position of the employer is such as to mean that retrospective payment to 1stJuly 2016 is not achievable, believes that having regard to the history of pay negotiations, the expectation of the Trade Union requires to be addressed. Therefore, the Court recommends that the employer should, in resolution of the parties’ dispute as regards retrospection of this pay agreement, make a payment of €500 each to members of the Trade Union on date of acceptance of this Recommendation or as soon as practicably possible thereafter and a further €500 to each member on 1stApril 2020.
3.The employer has, as part of the above pay offer, proposed that an existing profit share / bonus scheme be abolished. The Court notes that this scheme has not benefitted employees for some time. The Court understands that the employer may have constructive proposals in respect of the operation of that scheme. The Court recommends that the existing scheme should remain in place until such time as any agreed replacement is implemented
4.The employer has offered, with effect from 2019 onwards, to increase the Christmas bonus to €300 per person. The Court recommends that this offer should be accepted.
5.The employer has offered that, on the day of the Christmas holidays, finishing time would be reduced by one hour. This would be a paid hour and would be applied to weekend workers on their last scheduled shift. The Court recommends that this offer should be accepted.
Signed on behalf of the Labour Court
Kevin Foley
LS______________________
9 January 2019Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Louise Shally, Court Secretary.