FULL RECOMMENDATION
PARTIES : KYTE POWERTECH DIVISION :
SUBJECT: 1.(1) Pay Claim, (2) Union Committee. 2. The Union request the Court recommend the Christmas bonus to be increased to €500. 3. The Union request the Court to recommend that the Union Committee not be unreasonably capped at less than 7 representatives.
4. 1. The Employer proposes a pay increase of Year 1 = 3% basic pay increase plus 1% increase based on operational efficiencies; Year 2 = 2.75% basic pay increase plus 1% increase based on operational efficiencies and Year 3 = 2.75% basic pay increase plus 1% increase based on operational efficiencies. That the Welder role receive a once off pay increase of 1.5% excluded from the 4% increase. 2. The Employer proposes the an addition to the Christmas bonus of - Year 1 = €150; Year 2 = €100 and Year 3 = €100. 3.The Employer propose the the Union Committee comprise of 7 representatives to be inclusive of Shop and Deputy Shop Stewards and that the selection should be sufficiently representative of the areas and categories covered in the collective bargaining arrangements.
Local discussions commenced in October 2021, but as no agreement could be reached the issues were referred for conciliation. Three conciliation conferences took place, following the final conciliation conference on the 12th ofApril 2022 a proposal was put out to ballot but was rejected by the SIPTU membership. Following a further engagement, the parties agreed to refer the following two items to the Court 1) pay claim and 2) Union Committee member’s release The SIPTU submission to the Court contained a claim for 6% a year for the three years but it was accepted that, that claim had not been to conciliation and therefore could not be heard by the Court. SIPTU agreed to proceed with the Union’s original claim of 4% a year for three years which had been through the conciliation process and formed part of the agreed joint referral to the Court. The Union submitted that they are seeking a 4% per year increase for three years, applied from 1/1/2022. In respect of welders, they are seeking an additional 1.5% on 1/1/22 to allow for skill retention. They are also seeking that the Christmas bonus be increased to €500 per year. The Union submitted that the members had rejected the original proposal as they had concerns with the operational efficiency model linking a percentage increase to output. The main areas of concern are that some of the metrics such as the quantum of overtime and the number of staff are outside of the Worker’s control. The Union submitted that its members felt that the inbuilt review system as set out could lead to delays in payments being made even if the failure to meet the metrics arose from exceptional circumstances and or circumstances outside the control of the Worker’s. In respect of the Union Committee the issue relates to the number of people that the Employer is prepared to release for meetings. The Union submitted that it was important that members of the committee were released and that the number should not be unreasonably capped at less than seven representatives. The Employer submitted that they were originally prepared to offer 6% over three years and that in respect of the welders they were prepared to offer an additional 0.5% for each of the three years. They were also proposing to introduce an exceptional individual performance bonus scheme. Following local engagement with the Union and engagement under the auspices of the WRC they had proposed the following: Year 1 2022 3% base pay plus 1% increase based on operational efficiencies to apply from acceptance of the offer Year 2 2023 2.75% base pay plus 1% increase based on operational efficiencies Year 3 2024 2.75% base pay plus 1% increase based on operational efficiencies The Employer submitted that retrospection for year one would be dealt with by adding €150 to the existing Christmas voucher scheme in year one, and an additional €100 to the Christmas Voucher scheme in year 2 and 3. An additional 1% efficiency payment in each year would be available and would be self-financed by operational efficiencies on the basis set out at conciliation. In respect of the welders as an exceptional measure the Employer was proposing an additional 1.5% for year 1. On the issue of release of committee members in line with the existing arrangements, management had originally put forward a proposal of five. The Employer submitted that the proposals they had put forward represented a significant additional cost to the business. The construction of their pay proposals on the basis of a base rate and an operational efficiencies rate is critical to the ability of the Employer to sustain the levels of increase proposed and essential to the long-term viability of the factory in Ireland. In respect of the Christmas bonus, it currently stands at €323 and moves in line with pay increases, The Employer are not proposing any changes to that. The Court having considered the submissions of the parties both oral and written recommends the following: With effect from 1st January 2022, 3% increase on basic pay With effect from 1st January 2023 3% increase on basic pay With effect from 1st January 2024 3% increase on basic pay In respect of welders an additional increase of 1.5% increase with effect from 1st January 2022. For the avoidance of doubt the Court is recommending that retrospection be paid back to 1/1/2022. The Court further recommends that the Christmas bonus vouchers be increased to €400 with effect from Christmas 2022. On the issue of release for Union Committee members the Court recommends that this number should be capped at 7. The Court notes that the parties have made good progress in their earlier discussions on the proposed operational efficiencies scheme which provides for an additional 1% in each of the three years subject to certain metrics being achieved. The Court notes the concerns of the Worker’s as expressed by the Union at the hearing and recommends that the parties re-engage locally and or with the assistance of the WRC if required, over the next eight weeks to see if they can reach an outcome that would assuage those concerns. The eight weeks to run from the date of issue of this recommendation. If the parties are unable to resolve the issue within that timeframe, this specific issue can be returned to the Court for a final recommendation. The Court so recommends.
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