LCR23072

PARTIES:

DIVISION:

SUBJECT:

Referral under Section 20(1) of the Industrial Relations Act 1969

BACKGROUND:

The Union referred this case to the Labour Court on 11 July 2024 in accordance with Section 20 (1) of the Industrial Relations Act, 1969 and agreed to be bound by the Court’s Recommendation.

A Labour Court hearing took place on 14 November 2024.

RECOMMENDATION:

SIPTU, on behalf of 22 members, referred a complaint to the Labour Court in accordance with Section 20(1) of the Industrial Relations Act, 1969 and agreed to be bound by the Court's Recommendation. 

The complaint before the Court arises from the introduction of performance related pay model for salaried staff in 2020.

SIPTU submits that a new performance related pay model was introduced unilaterally for salaried staff without discussion or agreement, despite SIPTU having collective bargaining rights for all union members on site. It seeks that the Court recommend the re-introduction of an opt-out arrangement so that members who choose to opt -out are awarded pay increases in line with warehouse colleagues, as happened in the past.

The Employer informed that Court that it does not recognise SIPTU for collective bargaining purposes in respect of salaried employees and for that reason declined an invitation to attend the conciliation services of the Workplace Relations Commission. It attended the hearing out of respect to the Court.

Its position is that there is no rationale for the provision of an opt-out clause, given that the performance-related pay process is in place for four years and none of the employees encompassed by the complaint to the Court have been negatively impacted by its introduction. It further submits that, notwithstanding a company letter in 2021 referencing opt-out options, no such arrangements were ever made available to employees. 

The Court has given careful consideration to the oral and written submissions of the parties.

In response to questions from the Court, SIPTU said that a trust issue has arisen with the company because of the way the new pay model was introduced, and that its members have concerns around a lack of security around performance related pay increases into the future. 

The redress sought by SIPTU, on behalf of its members, is the introduction/reintroduction of an opt-out arrangement. It confirmed that to date no salaried staff in SIPTU membership have been negatively impacted by the new pay model since it was introduced in 2020. 

The Courts function is to hear the parties and give its opinion on how a workplace dispute might be resolved. Having considered the views of the parties expressed in their oral and written submissions, and without prejudice to either party’s position, the Court is of the view that there is no recommendation it can make in relation to this matter, at this time.

The Court so recommends.

	Signed on behalf of the Labour Court
	Katie Connolly
FC	______________________
28th November 2024	Deputy Chairman

NOTE

Enquiries concerning this Recommendation should be addressed to Fiona Corcoran Court Secretary.