LCR22833

1.Pay Claim

BACKGROUND:

2.This dispute could not be resolved at local level and was the subject of a number 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 9 May, 2023 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 22 September, 2023.

RECOMMENDATION:

The dispute before the Court relates to a two-year pay claim by SIPTU on behalf of 257 general operatives.

Following the expiry of a pay agreement on 31 March 2022 discussions on a successor agreement were delayed in order to resolve other matters arising from the establishment of the company as a new legal entity. The company was created as a new legal entity in April 2022 following the spin-off of the diabetes care manufacturing site in Dun Laoghaire from its former parent company. It now forms part of a separate global structure.

SIPTU contends that the delay in pay discussions has resulted in a prolonged period with no pay increase for its members during a cost-of-living crisis. It seeks a two-year pay deal that will bring its members in line with average pay increases secured by SIPTU elsewhere within the Pharmaceutical, Chemical, and Medical Devices sector. SIPTU acknowledges that there were certain difficulties regarding the company offer of a 2% pay increase proposed for 2022, however, it submits that there is a disparity between the company offer made to the SIPTU group in 2023, and the increases applied to other groups on the site.

The Company’s position is that the 2022 budget was closed when delayed pay discussions began, and that the offer of a 2% increase in pay for 2022 was the average pay increase applied to other staff groupings on site. A 3.55% increase in pay was applied to other staff groupings for 2023, and that salary budgets are dependent on company performance, volume demand, future volume forecasts, inflation rates, and running costs. As the site has the highest wage cost within the Group, and has experienced a reduction in volume demand, it must manage its costs tightly.

The parties have provided comprehensive written and oral submissions to the Court, which the Court has carefully considered.

The Court notes that a Company proposal to increase in pay by 3.8% was recommended for acceptance by the SIPTU committee but this was subsequently rejected in a ballot by members.

SIPTU was clear in expressing to the Court the dissatisfaction of its members regarding increases in pay applied to other groups of employees on site. It is accepted that pay increases for general operatives are determined differently to other groups of employees, who have their pay is determined by reference to performance levels and length of service. The Company’s position is that theaverageincrease applied to other groups was 3.55%.

The Court notes that the Company made a revised offer at conciliation providing a 3.85% increase in pay for general operatives for 2023.

Having regard to all of the circumstances, the Court recommends that the Company amend its proposal to provide as follows:

• • • 01 April 2022 2%
    
    • 01 April 2023 3.85% (inclusive of a 0.3% concession of a shift top up)
  
  
  • 
    • A tax-free voucher payment consistent with Revenue rules in the amount of €350 to be made to each general operative.

The Court so recommends.

	Signed on behalf of the Labour Court
	Katie Connolly
SOC	______________________
9 Oct 2023	Deputy Chairman