LCR22965

PARTIES:

DIVISION:

SUBJECT:

Pay Claim of 8% over 24 months concerning general operatives.

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 22 March 2024  in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 9 May 2024.

UNION'S ARGUMENTS:

1. The Union says that they members who are on a low wage have suffered through a cost of living crisis where the employer has cut their working hours to 3 days per week on an almost continuous basis since April 2022.

2. The members lodged a reasonable pay claim for 8% over 24 months

EMPLOYER'S ARGUMENTS:

 1. The Company operates in a deeply competitive marketplace where labour costs constitute a significant element of all overheads.

2. The Company is very concerned about the level of pay increases being claimed by SIPTU which are according to it very unrealistic and raise serious concerns over the extent to which the Union and its members fully understand the challenges facing the site.

RECOMMENDATION:

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

The dispute between the parties arises from the rejection of the employer’s offer of an increase in pay of 3% with effect from July 2023 with negotiations to take place to address pay movement with effect from July 2024. The trade union seeks a two year pay agreement incorporating a 4% pay increase with effect from July 2023 and a further 4% pay increase with effect from July 2024. The previous pay agreement of the parties provided for increases in the three years prior to July 2023 in the amount of 1.5% in each of those three years.

The Court has carefully considered the outline given by the employer of the financial position of the company and the consideration being given presently to its future direction by its owners. Similarly, the Court has carefully reflected upon the trade union’s outline of the situation of its members following on a period of three-day week working.

The Court notes that the trade union has been afforded access to the ‘books’ of the company.

The Court Recommends that

• The parties, having engaged to resolve this matter for many months, should agree that the 2023 pay round should be settled now. There can be no value to either party in continuing to contest the amount of pay increase that should apply from July 2023.
• In a spirit of pragmatism and realism, pay should be adjusted by 3.5% with effect from July 2023
• Negotiations to conclude an agreement on pay movement with effect from July 2024 should take place in a timely manner with a view to reaching an agreement on that matter in a reasonable timeframe.

The Court so recommends.

	Signed on behalf of the Labour Court
	Kevin Foley
CC	______________________
14 May 2024	Chairman

NOTE

Enquiries concerning this Recommendation should be addressed to Ceola Cronin, Court Secretary.