Salary linking and indexing in 2022 - 2023 under the transition mangement

The collective labour agreement principle of indexation has always been to index pay scales and to give an employee who is paid above the pay scale only the right to the index flat rate on their pay scale, unless other practices apply across the company.

In 2022, a number of employees may have earned a little or a lot more than the scale, but there were also employees who may have moved from the current scale rate of €12.92 to the new category 1 classification due to the new jobs classification system.

The principle: an employee must receive indexation on their current pay scale (as of 31/12/2022).

A few examples:

1. A driver who is currently on the gross hourly rate of €12.92 in line with their job, but, under the new classification, finds themself in Category 1: they keep their current salary (the classification may not result in a pay cut) and should receive €12.92 + the indexation on €12.92, i.e. €1.416. So their new rate goes up to €14.336 (the scale rate is €13.85)

2. A driver who is currently on a gross hourly rate of €13 in line with their job, but, under the new classification, finds themself in Category 1 or 2: they should receive €13 + the indexation on €12.92€, i.e. €1.416 as a set index sum. See the collective labour agreement indexation, i.e. €14.416.

3. A driver who is currently on a gross hourly rate of €13 in line with their job, but, under the new classification, finds themself in Category 3: they should receive €13 + the indexation on €12.92€, i.e. €1.416. Given that this amount is lower than the new pay scale salary for Category 3, the rate accorded must be raised to €14.5025, i.e. the new minimum sector pay for this class.

4. A driver who is currently on a gross hourly rate of €13 in line with their job, but, under the new classification, finds themself in Category 4: they should receive €13 + the indexation on €12.92€, i.e. €1.416. Given that this amount is lower than the new pay scale salary for Category 4, the rate accorded must be raised to €14,6690.

5. A driver who is currently on a gross hourly rate of €16,92 in line with their job, but, under the new classification, finds themself in Category 1: they should receive €16,92 + the indexation on €12.92€, i.e. €1.416, which gives a new rate of €18,336

6. A driver who is currently on a gross hourly rate of €16,92 in line with their job, but, under the new classification, finds themself in Category 2: they should receive €16,92 + the indexation on €12.92€, i.e. €1.416, which gives a new rate of €18,336.

7. A driver who is currently on a gross hourly rate of €16,92 in line with their job, but, under the new classification, finds themself in Category 3: they should receive €16,92 + the indexation on €12.92€, i.e. €1.416, which gives a new rate of €18,336. This amount being higher than the new pay scale for Category 3, no further adjustment need be made.

8. A driver who is currently on a gross hourly rate of €16,92 in line with their job, but, under the new classification, finds themself in Category 4: they should receive €16,92 + the indexation on €12.92€, i.e. €1.416, which gives a new rate of €18.336. This amount being higher than the new pay scale for Category 4, no further adjustment need be made.

9. The current rate is €13.50, 100% of the company index, which gives €14.9796. They fall into Category 3 (Category 3 pay scale = €14.5025). They will continue to be paid their current indexed rate (higher than the pay scale).

10. The case of an employer paying a bonus on top of the scale. Example: all their drivers of 15 tonnes or more are on a pay scale rate of €12.92 and their ADR drivers receive an individual bonus/extra pay of €1 per hour. The €1 bonus must not be indexed (unless it is customary to do this across the company) and must remain an individual bonus if this is a vested right.