FULL RECOMMENDATION
SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES: SIEMENS HEALTHINEERS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - APPROX 180 WORKERS (REPRESENTED BY UNITE THE UNION) DIVISION:
SUBJECT: 1.Industrial Relations Act 1969 Referral Under Section 20(2) RECOMMENDATION: The dispute before the Court relates to the Union’s claim for a three-year cost of living pay claim and an incremental pay scale to arrive at 100% of target pay rate by end of third year of employment. The Union are opposed to the pay matrix system being used by the Employer. It was their submission that despite asking for comparators on which the matrix was based they were not provided with named comparators. The matrix as is currently being employed is misleading as people can be in post for years and never receive 100% of the pay rate. The Union gave an example of someone who was in post for 17 years and was still not on 100% of the rate. The Unions position is that their preference is for a flat rate cost of living increase for each of the three years which they believe the Employer is financially in a position to pay. However, they did not dispute that the negotiations to date both locally and under the auspices of the WRC were in respect of the pay matrix system. The Employer submitted that the financial security of the Swords site requires a sustainable payroll model to compete in a globally mobile manufacturing environment, particularly with the launch of a new manufacturing site in China. The matrix pay system was introduced in 2018 and provides that stability. In the course of their engagement with the Union the Employer has supplied comparators. However, they are anonymised comparators from within the sector. The use of the matrix system was never challenged through the direct negotiations with the Union or in the negotiations under the auspices of the WRC. In the course of the negotiations three substantial proposals were put to the Union for consideration. The final proposal which was formulated with the assistance of the conciliation services of the WRC will add 14.6% to company pay cost over the 3-year period. Based on those proposals all Workers with seven years or more service in post at 1stJanuary 2022, will by the 1stJanuary 2024, reach 100% of the 1stJanuary 2022 target pay rate. The Employer confirmed that the proposal that emanated from the WRC discussions has at this stage been implemented for all staff. Discussion The Court notes that the three proposals that the parties engaged around prior to referring the matter to the Court were based around the matrix system and changes to same and not a flat rate increase. The Court also notes that the Employer has implemented the increases due to all staff arising from the WRC proposal, while acknowledging that it has been rejected by the Union. The Court having considered the written and oral submissions of the parties and noting that the package as a whole is weighted towards the lower paid, recommends as follows. In respect of the cohort of workers whose salary is in excess of 100% of the target pay and who qualify for the 1% lumpsum, the Court recommends that the lumpsum is increased to 2%. In terms of staff achieving 100% of target pay within seven years of service in post, the Court notes the Employer’s proposal will only bring staff to 100% of the 2022 pay rate in 2024 meaning they will still be at less than 100% of the target pay rate in 2024. The Court acknowledges that this is a first step towards achieving the goal of staff achieving 100% of target pay within seven years of in post service. Going forward the Court recommends that the Employer in negotiation with the Union strive overtime to reach a situation where staff with seven or more years’ service achieve 100% of the target rate of pay in real time, i.e. the actual year they achieve the seven years in post service, and not some later date. The Court so recommends.
NOTE Enquiries concerning this Recommendation should be addressed to Aidan Ralph, Court Secretary. |
