Fórsa, Siptu and Unite members at Ervia / Irish Water have backed new pay proposals which will increase basic pay, by an average of 2.5% per year, up to March 2020.
Union members backed the proposals by a margin of 59% to 41%. Ervia employs just over 1,600 staff in what was formerly Gas Networks Ireland (Bord Gais) and Irish Water.
The multi-year deal provides for base pay increases, equivalent to market movement, in addition to increased performance-related awards plus an increase in annual leave for lower grades (F and G grades) represented by Fórsa.
Under the terms of the new deal, basic pay will rise by:
- 2.5% from 1st January 2018
- 2.5% from 1st January 2019
- 0.67% from 1st January to 31st March 2020.
In his report, independent facilitator Joe McDermott recommended that the company arrange immediate payment of the pay increases for 2018 following formal acceptance by the group of unions.
The newly agreed pay model replaces the review of 26 comparator companies with a new assessment that looks at the average pay movement from three established pay surveys.
The surveys are the IRN-CIPD annual survey, the Ibec annual survey and the Willis Towers Watson general industry survey.
In order to ensure the company's pay remains in line with market movement, the deal provides that, in the event of greater than forecast pay trends (plus or minus more than 0.1%), this will be reflected fully in subsequent years, after March 2020. In addition, the pay progression process will continue to be subject to an annual affordability test.
Assistant general secretary Johnny Fox said the new pay model, by agreement, maintained a performance-related approach. “The new agreement ensures pay stays in line with average pay movement across the economy, while also boosting the potential to deliver, particularly for the F and G grades represented by Fórsa.
“Securing an improvement to standard annual leave, in addition to performance awards, for these grades is another important breakthrough, and while we’ve ensured that pay improvements are consistent with economic trends, the deal provides for this to be addressed post-2020 in the event that pay movement is much greater than forecast,” he said.
The full set of proposals is available HERE.