ADJUDICATION OFFICER Recommendation on dispute under Industrial Relations Act 1969
Investigation Recommendation Reference: IR - SC - 00000653
Parties:
| Worker | Employer |
Anonymised Parties | A Butcher | A Supermarket |
Representatives | Noel Murphy Cork Operative Butchers IWU | No Attendance |
Dispute:
Act | Dispute Reference No. | Date of Receipt |
Complaint seeking adjudication by the Workplace Relations Commission under section 13 of the Industrial Relations Act, 1969 | IR - SC - 00000653 | 09/09/2022 |
Workplace Relations Commission Adjudication Officer: Thomas O'Driscoll
Date of Hearing: 09/08/2023
Procedure:
In accordance with Section 13 of the Industrial Relations Act 1969 (as amended)following the referral of the dispute to me by the Director General, I inquired into the dispute and gave the parties an opportunity to be heard by me and to present to me any information relevant to the dispute.
The Employer sent in a written submission prior to the dispute questioning my jurisdiction to investigate the dispute and attended at the outset to formally submit its objections. The Employer left the proceedings and did not take part in the substantive investigation after I gave my decision that I could properly investigate the dispute.
Employer’s Preliminary Application:
The Employer’s position was (1) that it is not appropriate for the matter to be brought before the Workplace Relations Commission (WRC) under the Industrial Relations Act 1969 (hereinafter “the 1969 Act”) and (2) that if the Adjudication officer intends to investigate the issue, the Respondent formally objects to such investigation taking place and will participate in proceedings.
The Employer cites Section 13(2) of the 1969 Act where it provides: (2) Subject to the provisions of this section, where a trade dispute (other than a dispute connected with rates of payof, hours or times of work of, or annual holidays of, a body of workers) exists or is apprehended and involves workers within the meaning of Part VI of the Principal Act, a party to the dispute may
refer it to a rights commissioner.
The Employer refers to the claim in the Worker’s initial complaint form which the Employer claims is a pay claim. The Employer submits that it is clearly evident that it relates entirely to the Worker’s rate of pay, which the Employer submits, is expressly prohibited by S13(2) of the 1969 Act. The Employer submits that the Adjudication Officer is not permitted to engage in an investigation of the dispute and that the dispute is not properly before the WRC.
Furthermore, the Employer relies on S13(3)(b)(ii) of the 1969 Act which sets out inter alia that an investigation cannot be conducted by an Adjudication Officer if a party to the dispute notifies in writing their objection to the dispute being investigated. The Employer referred to a copy of this written objection. The Employer acknowledges that this written objection was delivered outside the statutory time limit provided by the 1990 Industrial Relations Act (hereinafter “the 1990 Act”). The Employer submits it was not in a position to submit the objection within the said time limit in circumstances where it did not receive the Complaint Form until it was provided to it by the WRC in or around May 2023.
Finally, the Employer submits that the dispute falls far outside the vortex of an industrial relations dispute when the Complainant has not even raised a grievance internally with his Employer in respect of this issue, which he had the ability to do in accordance with his contract of employment and Employee Handbook.
For the reasons set out above, the Employer submits that the investigation of the dispute should not proceed and further that if it does proceed the Employer elects not to engage with same.
Findings and Conclusions - Employer’s Preliminary Application:
There are two grounds which the Employer relied upon with regard to its application: (1) that a pay dispute of an individual worker cannot properly be investigated under the 1969 Act and (2) that the Employer objected to the investigation and therefore it should not go ahead. The issue with regard to the alleged non-utilisation of any grievance procedure by the Worker is a substantive issue which can be ordinarily investigated therefore I am not dealing with it as part of the Employer’s preliminary application.
Section 13(2) of the 1969 Act:
Section (2) providesas follows:
“ Subject to the provisions of this section, where a trade dispute (other than a dispute connected with rates of payof, hours or times of work of, or annual holidays of, a body of workers) exists or is apprehended and involves workers within the meaning of Part VI of the Principal Act, a party to the dispute may refer it to a rights commissioner.”
This section clearly states a trade dispute for an individual, other than a collective trade dispute involving a body of workers, can be investigated. It has well been established that the application of a collective agreement to an individual can be investigated provided it does not affect the agreement per se. I am satisfied that no collective group of workers would be affected by the outcome of this case. Therefore, I reject the Employer’s argument on this point.
Section 13(3)(b) of the 1969 Act:
The Employer claims it did not receive the original claim when the Worker first submitted the claim on 29 March 2021. The Workplace Relations Commission, when informed of this by the Employer’s representative, sent out a copy of this form to the Employer on May 18, 2021. The Employer sent a letter of objection on 24 July 2021.
Section 36 (1) of the 1990 Act provides:
(1) An objection under section 13 (3) (b) (ii) of the Industrial Relations Act, 1969, by a party to a trade dispute to an investigation of the dispute by a rights commissioner shall be of no effect unless it is notified in writing to the commissioner within three weeks after notice of the reference of the dispute to the commissioner has been sent by post to that party.
The Employer received a copy of the original claim form on 18 May 2021 but objected to a hearing on 24 July 2021 which was outside of the three weeks limit for lodging such an objection. I therefore find that the hearing can proceed.
The Employer attended at the outset of the hearing, which was heard with associated employment rights complaints. I gave my preliminary decision that the dispute was properly before me, based on the reasons outlined above. The Employer declined to attend the dispute hearing. The Hearing proceeded.
Background:
The Worker is employed as a butcher in a supermarket and claims that a regular pay increase which he received as part of custom and practice with a previous owner was stopped when the Company went into a period of receivership. The Worker is seeking compensation for the non-payment of the pay rise and that the Company would continue to pay Union rates going into the future. |
Summary of Workers Case:
The Worker entered into an agreement with the former owner of the supermarket, that he would be paid an agreed local union rate as applied in a collective agreement between his own union, and other employers. The Worker concedes that his employer was never an actual party to the collective agreement. He claims he has lost €65.39 over a period of 75 weeks and that this total loss amounts to €4,904.25. He is asking the adjudicator to recommend that the company should pay this money and that all future pay and conditions agreed through the relevant trade union/employer collective agreements are applied. The Worker submits that on 30 June 2023, he was informed in a letter from the Employer that the company was passed on to a new owner and that the Transfer of Undertakings Regulations apply from 1 August 2023. This letter thanked the employees for their "contribution to the success of the business". The Worker submits that the Employer is in a position to pay the Worker the backdated pay rise backdated to 1 March 2022. |
Summary of Employer’s Case:
The Employer did not attend. |
Conclusions:
In conducting my investigation, I have taken into account the submission presented to me by the Worker’s trade union, albeit in the absence of the Employer. I am satisfied that the Worker had within his contract a clause that stated his wage rates shall be negotiated with his employer from time to time. I also conclude that the custom and practice was that this was reflected in practice whereby, amongst other discussions, the Employer would match the percentage pay increase that was collectively bargained locally between employers and his union, albeit on an ad hoc basis recognising that the Employer was not a signatory to that collective agreement. However, the Worker did rely on it, and it became custom and practice to apply the union rates. The Employer experienced financial difficulties in 2021 and went into receivership. The receiver, who stood in the shoes of the Employer, refused to negotiate the Worker’s wage with the Worker’s designated agent, his trade union, and I am satisfied this could be implied as a breach of a contractual term. |
Recommendation:
Section 13 of the Industrial Relations Act 1969 requires that I make a recommendation in relation to the dispute.
Having considered the Worker’s submission, I recommend the following:
- That the Employer would, from the date of receipt of this recommendation apply a 10% increase to the Worker’s salary, in line with the collective agreement and that all future pay increases, as identified in the relevant collective agreement, would be applied to the Worker.
- That the Employer would pay the Worker €3000 in backpay. This is not the full sum claimed but is recognition of the fact that the employer had experienced financial difficulties during a period of receivership.
Dated: 06/09/2023
Workplace Relations Commission Adjudication Officer: Thomas O'Driscoll
Key Words:
Industrial Relations Act 1969, Individual Pay Dispute, Jurisdiction. |