LCR22548

FULL RECOMMENDATION

SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990

PARTIES :

PINEWOOD HEALTHCARE LTD
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)

- AND -

200 WORKERS
(REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION)

DIVISION :

SUBJECT:

1.Pay (Referral arising from LCR22397).

BACKGROUND:

2.This dispute could not be resolved at local level and was the subject of Conciliation Conferences under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 24 November 2021 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 16 December 2021.


UNION’S ARGUMENTS:

3. 1. Workers have experienced several pay freezes over a fourteen-year period that has left them amongst the lowest paid workers within the Pharmaceutical, Chemical and Medical Devices sector.

2. The Employer’s profit leaves them in a strong position to meet the pay increases sought by Workers.

EMPLOYER'S ARGUMENTS:

4. 1. The Employer has not seen their hoped for improvements to their business and its markets following the disruption caused by Brexit and the ongoing Covid-19 pandemic.

2. Without these improvements the Employer is limited in the additional labour costs that they can occur.

RECOMMENDATION:

Background to the Dispute

The within dispute relates to a pay claim by the Trade Union for a 5% pay increase for each year in the period 1 April 2020 to 31 March 2023. The Trade Union submits that the Company’s financial reports demonstrate that it is extremely profitable, recently paid a significant dividend to its parent company and has increased its cash reserves. The Union also submits that the Company’s pay rates are notably lower than the average rates paid in the pharma/medical devices sector.

The Company’s counteroffer made in the course of Conciliation and which remains on the table is as follows:

 1 April 2020 to 31 March 2021: €250.00 voucher;

 1 April 2021 to 31 March 2022: 2% increase;

 1 April 2022 to 31 March 2023: 2.5% increase.

The Company submits that Brexit and the ongoing pandemic have had a disproportionally detrimental impact on its business and on its key markets in Ireland and the United Kingdom. It further submits that the business is highly leveraged and doesn’t have financial reserves to draw on.

Recommendation

The Court recommends that the Union accepts the following terms in settlement of the within dispute:

 1 April 2020 to 31 March 2021: €350.00 tax-free voucher;

 1 April 2021 to 31 March 2022: 2% increase;

 1 April 2022 to 31 March 2023: 2.5% increase.

The Court so recommends.

NOTE

Enquiries concerning this Recommendation should be addressed to Cathal Nurney, Court Secretary.