FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : LACPATRICK DAIRIES LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - 73 WORKERS (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Geraghty Employer Member: Mr Marie Worker Member: Ms Tanham |
1. 'Non Implementation Of Pay Agreement & Cost Cutting Measures Implemented By The Company In November 2018'
BACKGROUND:
2. This issue concerns 73 workers who are seeking restoration of cost cutting measures which were implemented in November 2018 and the implementation of a 2018 pay agreement.
The issue 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 3 July 2019 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on 9 July 2019.
RECOMMENDATION:
The Court is of the view that much of the difficulty in this case could have been avoided if a clear line of communication had been set up to keep the workforce informed of the severe financial difficulties that occurred in the company. The absence of such a process has led to understandable distrust and suspicion.
The Recommendation set out below is an interim Recommendation.
The Court notes the report of an independent financial assessor, on which both parties made presentations to the Court. Account has been taken of that assessment in this interim Recommendation.
The Court recommends that the Employer should pay the 2.5% increase that is due from February 2017, with effect from 1 July 2019.
The Court recommends that the Employer should pay the 2.5% increase that is due from 1 February 2018, with effect from 1 December 2019.
The parties should engage immediately to enable information to be shared and reviewed on the company’s financial situation, the plans to resolve financial difficulties plus future business plans and financial projections. The parties should be prepared to avail of outside professional assistance in this exercise, as necessary.
This process of sharing information should inform parallel discussions between the parties regarding the pace at which outstanding industrial relations issues are addressed. For the avoidance of doubt, the issues to be dealt with in this parallel process are as follows;
- The retrospection due in respect of the 2.5% increase in pay agreed to apply from 1 February 2017
- The retrospection due in respect of the 2.5% increase in pay agreed to apply from 1 February 2018
- The restoration of the sick pay scheme
- The restoration of Christmas bonuses
- The restoration of the Bank Holiday premium
- The restoration of the service pay scheme.
In the event that agreement cannot be reached regarding any of these industrial relations issues, the Court notes that it is open to the parties to avail of the assistance of the Workplace Relations Commission following which, if necessary, any outstanding matters can be referred back to this Court for a final Recommendation.
Signed on behalf of the Labour Court
Tom Geraghty
DC______________________
10 July 2019Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to David Campbell, Court Secretary.