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Bord Gáis pay system brokered

Date Released: 22 March 2013

The introduction of a performance- related pay system for new workers in Bord Gáis has been agreed between unions and the semi-state’s management.SIPTU Sector Organsier, Oliver McDonagh, told Liberty: “This type of pay system had been rejected previously by union members.

“Existing employees were on an incremental scale and would not change.

“The new Bord Gáis proposal affects new entrants only – existing members will only be affected if they apply for promotion. Existing employees may opt into the scheme voluntarily if they wish.”

The salary range for new employees will be based on market research figures provided annually by Towers Watson. The union will have the right to put forward an alternative with the final outcome negotiated.

Potential for further salary increases can be achieved through individual performance. The matrix will range from 0% to 3%.

Existing employees who wish to cross over to the new pay system can retain their present pay rate. After that, increases will depend on market movement and performance-related pay. Those on the top of their scale who cross over will also receive 50% of national wage or other forms of collective agreements. The scheme provides for an individual performance bonus at the end of the year, based on individual, business

unit, and corporate performance.

Oliver McDonagh added: “The company had approached the union seeking a €9.6m reduction in pay roll. The new scheme will deliver the savings required,

“The union, although dubious about performance-related pay schemes, welcomes the fact that there will be no job losses and no decrease in the earnings of our present members.

“The union also welcomes the fact that 58 people on fixed-term contracts will be made permanent, retaining their present salary and future increases will be based on market movement and individual performance.”

A defined contribution pension scheme for new starters will be introduced.

Present employees and those on fixed-term contracts will remain in the defined benefit pension scheme. The deal was brokered over many days at the Labour Relations Commission, and was accepted by ballot. An additional one-off payment of €1,000 per employee is to be paid on acceptance.


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