LCR22992

PARTIES:

DIVISION:

SUBJECT:

Inequality of the Remuneration Package paid to New Entrants of the Maintenance Team.

BACKGROUND:

This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 3 May 2024 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 7 June 2024.

UNION'S ARGUMENTS.

1. No two similarly qualified Craftpersons conducting identical work should be paid different rates of pay and afforded different benefits.
2. There are no other sites within the Tirlan Group where this two tier system of pay exists.

EMPLOYER'S ARGUMENTS.

1. The new craft rate of pay was agreed with the Union in 2015. The company acknowledges that this rate can be reviewed and a new rate agreed
2. This rate of pay must be a fair and sustainable rate of pay for both employees and the business.

RECOMMENDATION:

The Dispute

This is a pay claim brought on behalf of thirteen Craft Workers (‘the Workers’) employed by Tírlán (‘the Company’) in the maintenance department of its plant at Ballyraggett, Co. Kilkenny.

In 2008, a restructuring of the maintenance department in Ballyraggett took place that gave rise to a number of redundancies and red-circling of the terms of conditions of existing maintenance staff retained in employment at that time. These are referred to as Craft 1.

The Workers who are the subject of this dispute are referred to as Craft 2/New Entrants, having commenced employment with the Company from 2015 onwards pursuant to a collective agreement entered into between the Company and the Trade Union at that time. The terms and conditions of the Craft 2 Workers are less favourable in a number of respects than those of the Craft 1 group although both groups perform the same work.

The Union is seeking a 22% wage increase for the Workers, over four years, in order to go some way to eliminate the wage gap between Craft 1 and Craft 2 Workers. The Company has offered a 6% pay increase.

The Union’s Submission

The Union submits that the current two-tier wage structure that is in place for craft workers – all of whom have the same qualifications and perform the same work – has created disharmony and bitterness amongst colleagues in circumstances where there is now a 31% pay differential between the two groups. The Union further submits that it has modified its position in the course of local discussions and through the conciliation process, moving from an initial claim of 28% to 22% whereas the Company has only moved 2% from its initial offer of a 4% pay rise.

The Company’s Submission

It is submitted on behalf of the Company that the rate of pay enjoyed by the Craft 1 (red-circled) group is an inflated rate and that it is not sustainable to reintroduce this rate for all Craft Workers, particularly in the light of the challenges facing the dairy industry. It is, it says, open to introducing a new rate of pay for Craft 2 Workers that works for both Parties. The Company informed the Court that there are company-wide pay talks ongoing and the Workers who are the subject of this dispute will also benefit from any increase agreed in that context.

Discussion and Recommendation

The Court recommends concession of a pay increase of 10% in total to the Workers concerned, in full and final settlement of the within dispute, phased as follows:

• 7% with effect from 1 February 2024; and
• 3% with effect from 1 October 2024.

The Court so recommends.

	Signed on behalf of the Labour Court
	Alan Haugh
AR	______________________
25 June 2024	Deputy Chairman

NOTE

Enquiries concerning this Recommendation should be addressed to Aidan Ralph, Court Secretary.