LCR22621

FULL RECOMMENDATION

SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990

PARTIES :

APPLE COMPUTERS

- AND -

WORKERS
(REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION)

DIVISION :

SUBJECT:

1.Pay

BACKGROUND:

2.This matter 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 matter was referred to the Labour Court on 12 May 2022, in accordance with Section 26(1) of the Industrial Relations Act 1990. A Labour Court hearing took place on 21 June 2022.

UNION’S ARGUMENTS:

3. 1. The Union submits that the Employer has offered pay increases of 45% from 2018 to non-union retail workers in the USA but only 9.05% to the Cork production operators in an equivalent 39-month timeframe.

2. The Union submits that the Employer unilaterally applied a 3% pay increase without agreement despite WRC proposals of 3% per year for 3 years being rejected at a union ballot. The members view this as disrespectful to the process of Collective bargaining.

3. At no point during the negotiations, comprising nine local meetings and four WRC conciliation conferences, did the Company claim inability to pay.

4. The Union requests the Court to recommend that the Employer implement a pay increase of 5.5% over a 12-month timeframe to be backdated to 1st October 2021.

EMPLOYER'S ARGUMENTS:

4. 1. The Employer states the 3% pay offer for one year and a commitment to further engagement on follow-on pay phases is more than reasonable and already took account of market conditions in October 2021.

2. The Employer states the Employees are already in receipt of various benefits given by the Employer including a one-once off payment of €900 to support home workspaces to all staff during the pandemic. This was also paid to Cork based Employees despite this being an on-site production environment where there was no home office requirement.

3. The Employer believes the Union's claim for a 5.5% pay increase from 1st October based on inflation is not sustainable.

RECOMMENDATION:

Background to the Dispute

The within dispute concerns a pay claim on behalf of approximately four hundred and eight Workers employed as General Operatives at the Apple manufacturing facility in Hollyhill, Cork. The most recent pay agreement in place between the Parties expired on 30 September 2021.

The Union is seeking a pay increase of 5.5% for its members to cover the period 1 October 2021 to 30 September 2022, having regard to the prevailing high rate of inflation and the general increase in the cost of living since early 2022.

The Company submits that the rate of inflation for the first half of the period covered by the proposed one-year agreement was significantly lower than 5.5%. The Company proposed and paid a 3% pay increase backdated to 1 October 2021, without prejudice to the outcome of the Labour Court’s Recommendation.

Recommendation

Having considered the Parties’ written and verbal submissions – and in particular their submissions in relation to pay settlements within appropriate comparator companies in the region and sector – the Court recommends that a further 1.25% pay increase be applied for the period encompassed by the claim.

The Court so recommends.

NOTE

Enquiries concerning this Recommendation should be addressed to Therese Hickey, Court Secretary.