FULL RECOMMENDATION
PARTIES : LAKELAND DAIRIES DIVISION :
SUBJECT: 1.(1) Pay Claim (2) Increase In The Shift Allowance For Night Working 2. The Union is seeking an increase in the shift allowance from 25% to 33% for night shift workers. The parties re-engaged with the assistance of the WRC in May 2022, where the union indicated that it was willing to recommend a pay proposal of an 11% increase over a three-year period if the company met its claim for a 33% shift premium. As the differences between the parties could not be resolved, the parties agreed to a joint referral to the Labour Court. At the Court hearing the Union submitted that it was now seeking a 14.75% increase in pay to apply over a three-year period as follows: 1. 2.75% increase effective from 1 April 2021. 2. 6% increase effective 1 April 2022. 3. 6% increase effective 1 April 2023. It submits that the claim is reasonable given the performance of the Company and given increasing inflation levels, as its members face significant increases in living costs and a reduction in living standards. The Union also seeks an 8% increase on the current night shift premium of 25%, which its members believe is reasonable given the arduous nature of night working.It seeks that the Court recommend that the company proposal be amended to bring the night shift premium to 33%. The Employer submits that the pay, terms, and conditions of employment for employees are attractive. It rejects the Union’s claim on pay and submits that wage inflation has significantly outperformed real inflation over the lifetime of previous pay agreements. The company is a low margin business and its capacity to absorb additional costs at this time is extremely difficult. It seeks that the WRC pay proposal of April 2022 be recommended by the Court, which it says is fair to employees and viable for the business. The Company proposed to increase the current night shift premium rate from 25% to 28% which it submits is a fair and reasonable proposal, particularly as the Union failed to meaningfully engage in discussion of any cost-offsetting measures. Any further increase in the shift premium for night working is not justified. On 8 April 2022, the WRC Conciliation Officer put forward proposals to increase pay as follows:- 2.75% increase effective from 1st April 2021. This will include payment of €500 in June 2022 through the Small Benefit Tax Exemption Voucher Scheme. A minimum guarantee of €500 will apply to qualifying employees. Employees who do not wish to avail of the Small Benefit Tax Exemption Voucher Scheme may make this known to the company through the normal HR channels. 3.5% increase effective 1st April 2022. 3.5% increase effective 1st April 2023. 2. There will be continued co-operation with normal ongoing change The Court has given careful consideration to the oral and written submissions made by the parties. Having regard to all of the circumstances, the Court recommends the following: Pay The WRC proposals on pay dated 8 April 2022 should be accepted as outlined with the following amendment:- 3.75% increase effective 1st April 2022. Shift Allowance for Night working The Court recommends that the company proposals dated 12 October 2021 should be accepted as outlined with the following amendment:- A 30% premium for night working to apply effective 01 September 2022. The Court so recommends.
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