Labour Court Database __________________________________________________________________________________ File Number: CD87679 Case Number: LCR11570 Section / Act: S67 Parties: THERMO KING (SHANNON) LTD - and - ITGWU |
Claim for an increase in pay on behalf of 9 service parts attendants.
Recommendation:
5. The Court notes that this is not a claim for upgrading and
that the Company, the Union and the IPC have found that there is
only a small increase in the points value of the job, and there is
no provision in the agreed scheme for intermediate rates in the
grades.
In these circumstances the Court does not recommend concession of
the claim.
Division: CHAIRMAN Mr Heffernan Mr Devine
Text of Document__________________________________________________________________
CD87679 RECOMMENDATION NO. LCR11570
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: THERMO KING EUROPE
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for an increase in pay on behalf of 9 service parts
attendants.
BACKGROUND:
2. The Company is a manufacturer of transport refrigeration and
exports its products all over Europe, the Middle East, Africa and
Scandinavia. The Company was established in 1976 in Galway and
later opened a service parts warehouse at Shannon in 1981.
Approximately 20 people are employed at Shannon of whom 12 are
employed as service parts attendants. Their job is to receive and
ship spare parts which are required in the field by the Company's
customers. The rate of pay for service parts attendants was
established in 1982 following a study by the Irish Productivity
Centre (IPC). The job scored 60 points and the attendants were
placed on grade 6. In 1986 the Company introduced new work
practices involving the use of an online computer. It was agreed
under the 25th wage round that the job would be re-evaluated in
the light of the changes and that if there was any rate change it
would be effective from 9th December, 1985. The Company carried
out the re-evaluation and while the job scored extra points (63)
it was insufficient to warrant a grade increase (under the job
evaluation system a score of 70 points is needed in order for the
job to be regraded from grade 6 to grade 7). Following
representations from the Union two evaluation exercises were
carried out by the IPC and the Union's industrial engineer which
resulted in the job scoring 65 and 68 points respectively. The
Union made a claim for an increase in wages because of the changes
introduced. The Company rejected the claim. The matter was
referred to the conciliation service of the Labour Court on 24th
February, 1987. Conciliation conferences were held on 7th May and
19th August, 1987. At the first conference it was agreed that a
job evaluation exercise be carried out by the IPC. As a
resolution was not possible both parties agreed to refer the issue
to the Labour Court for investigation and recommendation. A Court
hearing was held in Limerick on 27th October, 1987.
UNION'S ARGUMENTS:
3. 1 The Union's claim is for an increase in wages because of
changed work practices and not for an upgrading. The
stores attendant grade is the only operative grade working
in Shannon. Concession of the claim would not have any
repercussive effects.
2 The rated value of the job has increased from 60 to
somewhere between 63 and 68 points. This in itself shows
that the operation as it is now carried out is of a higher
value than when the previous method of working was in
operation. It is this increase in value which the Company
must address.
3 The applicability and suitability of the job evaluation
scheme at Shannon must be brought into question. Given
that the Shannon plant conducts negotiations as a separate
entity and that only one grade, and therefore one rate of
pay exists, questions the validity of the evaluation. The
whole purpose in an evaluation exercise is to quantify the
differences between jobs - which is obviously difficult if
only one job exists.
COMPANY'S ARGUMENTS:
4. 1 The IPC found that there were no grounds for an upgrade.
The rate for the service parts attendant was established by
the IPC and accepted by the Union in 1982. The IPC at the
time evaluated the service parts attendant's job against
other jobs in the Thermo King Company in Galway. There has
never been a problem in relation to this grade since the
start of the warehouse facility in Shannon.
2 The job evaluation scheme has been in operation in the
Company since 1979 and continues to operate successfully.
The break points between the different grades were
established in 1979 and have not been altered in any way
since that time. Jobs are only upgraded when they exceed
the break point.
3 The Union's argument that there should be some recognition
when the points total has increased would create chaos in
the Galway system where there are 40 jobs involved in
total. If the principle of giving payments where jobs have
moved two or three points was conceded by the Company in
Shannon, the repercussions for the Galway job evaluation
scheme would be very serious indeed. The whole wage
structure in the Galway plant would be undermined.
RECOMMENDATION:
5. The Court notes that this is not a claim for upgrading and
that the Company, the Union and the IPC have found that there is
only a small increase in the points value of the job, and there is
no provision in the agreed scheme for intermediate rates in the
grades.
In these circumstances the Court does not recommend concession of
the claim.
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Signed on behalf of the Labour Court
4th December, 1987 John M Horgan
MD/PG Chairman