Labour Court Database __________________________________________________________________________________ File Number: CD8718 Case Number: LCR11141 Section / Act: S67 Parties: MILOKO CO-OP - and - ATGWU |
Claim on behalf of 15 plant operators for a competency payment.
Recommendation:
5. In view of the fact that the payments of the competency
allowances at Ballyragget are themselves anomalous within the
overall pay structure in the creamery industry the Court does not
recommend concession of this claim.
Division: Mr O'Connell Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD8718 THE LABOUR COURT LCR11141
CC861764 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11141
Parties: MILOKO CO-OPERATIVE SOCIETY
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of 15 plant operators for a competency
payment.
Background:
2. The Society which is based in Carrick-on-Suir is part of the
Avonmore Group. It is engaged in milk processing and the
production of casein. The Group has a similar plant at
Ballyragget, Co. Kilkenny. Certain categories of employees at the
Ballyragget plant are paid a competency payment in addition to
their wages, in respect of various operations for which they are
responsible. The allowance is paid at varying levels, 18%, 22%,
or 25%, of gross wages, depending on the level of skill and
responsibility involved. The Union, claims that the workers
concerned at the Miloko plant perform tasks similar or identical
to those at Ballyragget, and are therefore entitled to be paid the
competency allowance which obtains there. The Society rejected
the claim on the grounds that the workers at Miloko were being
paid the correct rate for the job. It contends that an anomaly
exists in the rates for operators at Ballyragget, and that
discussions are currently under way with a view to discontinuing
the allowance. Agreement could not be reached at local level, and
on 30th October, 1986, the matter was referred to the conciliation
service of the Labour Court. A conciliation conference took place
on 18th December, 1986. No agreement was reached and on 6th
January, 1987, the matter was referred to the Labour Court for
investigation and recommendation. A Court hearing took place in
Clonmel on 7th April, 1987.
Union's arguments:
3. (i) The Union's argument hinges upon the fact that 15
workers at Miloko are doing similar or identical work
to that being carried out at Ballyragget, where 18%,
22% and 25%, competency allowance is in operation. It
should be noted that no level of supervision is
required at Miloko due to the competency of the plant
operators.
(ii) When Miloko first became part of the Avonmore Group,
inequalities were discovered between the workers' wages
and those of other employees in the Group. Parity was
sought with the Ballyragget workers, but the Society's
position was that parity would first be given with
operations other than Ballyragget. This has now been
achieved, and the Union, on behalf of the workers, is
seeking like pay for like work with their counterparts
in Ballyragget.
Society's arguments:
4. (a) The historical method of payment for operators at
Ballyragget factory catered for "competency," a
percentage allowance being a factor in arriving at a
rate for the job, plus the basic general employee rate
(grade 3). This resulted in an excessive rate for the
job relative to the generally accepted rates applying.
This payment is an anomally, and the Society is seeking
its discontinuance.
(b) Excessive rates of pay have not helped the Society's
competitiveness in the market place. The operators in
Miloko are being paid the appropriate rate as detailed
and agreed in the Irish Co-Operative Organisation
Society (I.C.O.S.) grading structure.
(c) The Society is currently going through a very difficult
and competitive period. A substantial loss was
recorded in 1986 (details with Labour Court). The
markets for dairy products are very sluggish and the
discontinuation of intervention for butter and skim
milk powder is imminent and may occur at any time in
the next three to four months. When this happens the
market prices for these products will be reduced,
particularly butter which represents 50% of the value
of a gallon of milk. This will most likely result in a
further reduction in the milk price to farmers. The
price has already been reduced 1p per gallon in
January, 1987.
(d) There are technical reasons why the operation at Miloko
is not strictly comparable with that at Ballyragget,
and this removes any justification for increasing the
current rates of pay (details with Court).
(e) The operators in Miloko must appreciate that they are
being paid the correct rates for the job, and that it
is unrealistic to aspire to the anomalous rate existing
in Ballyragget. The Society cannot offered to pay in
excess of the going rates and must regain viability and
competitiveness, otherwise many jobs could be lost.
For the mutual benefit of all concerned, the Society
requests the Court to recommend in favour of its
position.
RECOMMENDATION:
5. In view of the fact that the payments of the competency
allowances at Ballyragget are themselves anomalous within the
overall pay structure in the creamery industry the Court does not
recommend concession of this claim.
~
Signed on behalf of the Labour Court
John O'Connell
_______________________
Deputy Chairman
30th April, 1987
P.F./J.C.