LCR22397

1.Pay.

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 8 February 2021 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place in a virtual setting on 21 April 2021.

RECOMMENDATION:

Summary of Union arguments.

The last pay agreement expired on 31 March 2020. It was agreed that the parties would meet in Quarter 1, 2020 to discuss future pay.

The Union seeks that lowest paid members have their pay brought up to the living wage of €12.30 per hour, an increase of 15%, and that other members receive equivalent increases. The Union accepts that these increases can be achieved over time.

The company facility in Clonmel is highly profitable, in March 2020 the accounts show net profits of €6.1m and the company paid a dividend to the parent company of €32.8m.

Pay rates in the company compare unfavourably with others in the sector.

Productivity reached record levels in 2020.

The Union seeks a pay increase from 1 April 2020.

Summary of Employer arguments.

The company’s financial performance has been impacted by the pandemic and Brexit, resulting in reduced profits, (details provided to the Court).

The Employer seeks a postponement of any pay discussions until June 2021 to assess how the market recovers as there is continued uncertainty.

The Employer is not in a position to give commitments about what might be possible at that time.

Increases in production volumes at the plant were due to work being transferred there from elsewhere in the company rather than to expanded activity.

Employees were rewarded through annual productivity bonuses and once off Covid appreciation payments at a cost of 9.4% of pay.

The dividend referred to by the Union is the first that has ever been paid to the parent company in 14 years.

The Employer engaged with the Union regarding a cost of living increase but never understood that it was being asked to engage on the broader issue of the living wage, a matter that is appropriate for consideration at national rather than company level.

Recommendation

The absence of any meaningful engagement between the parties on the substantive issue of a pay claim has resulted in insufficient clarity to enable the Court to make a recommendation in respect of pay that could assist in resolving this matter.

The Court sees no value in proper engagement between the parties being delayed further and notes that the Employer is not citing an inability to pay any increase to its workers.

The Court notes that the Employer is willing to share its financial information with the Union and that this can help to inform the parties in any engagement regarding the Union’s claim to have pay increases that would take effect from 1 April 2020.

The Court recommends that the parties engage immediately, with the assistance of the WRC, if necessary; that the Employer shares all relevant financial information with the Union and that the Union clarifies in clearer detail the exact pay increases being sought.

If the parties are unable to reach full agreement by the end of July, the Court recommends that any outstanding matters be referred back to the Court for final recommendation in line with normal procedures.

	Signed on behalf of the Labour Court
	Tom Geraghty
TH	______________________
22 April 2021	Deputy Chairman