LCR22995

PARTIES:

DIVISION:

SUBJECT:

Removal of Grade Rate

BACKGROUND:

This dispute could not be resolved at local level and was the subject 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 11 April 2024 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 11 June 2024.

UNION’S ARGUMENTS

1. The Higher Grade was merited given increased activity in the planet, leading to a larger workload and increased responsibilities for the Workers.
2. The change to the Higher Grade was approved by the Workers’ manager.
3. The pay-rate the Workers availed of under the Higher Grade should be reinstated.

EMPLOYER’S ARGUMENTS

1. The Higher Grade is only merited in circumstances where Workers take on a role that requires additional skills, which did not take place in these Workers’ circumstances.
2. The approval by the Workers’ manager was given in error.
3. The Employer is not seeking any reimbursement of wages paid in error and has offered compensation for the Workers’ removal from the Higher Grade.

RECOMMENDATION:

The Dispute

This is a claim on behalf of three Workers for the re-instatement of a grade differential pay rate which was ceased on 22 August 2022.

The Workers are Powder Operators at the Kerry Dairy Ingredients plant in Listowel. They had been in receipt of a Grade 5 rate of pay from in or around December 2021. The current differential between Grade 4 and Grade 5 is 76 cent per hour. The Workers work a forty-two hour week.

The Union’s Submission

The Union submits that the Worker’s merited the grade uplift applied to them in December 2021 having regard to the increased level of activity in the plant and the additional workload and level of responsibility they assumed as a consequence. The Union further submits that the uplift was approved by the Workers’ manager but was subsequently removed from them without consultation or explanation.

The Company’s Submission

The Company submits that grade uplifts are applied only in circumstances where a worker assumes a role that requires additional skills. It further submits that the Plant Manager in granting the grade uplift to the Workers in December 2021 did so in error and without authorization or prior approval. The Company is not seeking a reimbursement from the Workers of the additional payments they received during the period that the grade uplift was applied and has offered to compensate them for the removal of the uplift at the established rate of 1.75 times their annual loss. The Company’s representative confirmed that this offer remains live.

Recommendation

The Court recommends that the Workers, in full and final settlement of the within dispute, accept the Company’s offer to compensate them for the removal of the Grade 5 rate of pay.

The Court so recommends.

	Signed on behalf of the Labour Court
	Alan Haugh
CN	______________________
9th July 2024	Deputy Chairman

NOTE

Enquiries concerning this Recommendation should be addressed to Cathal Nerney, Court Secretary.