Labour Court Database __________________________________________________________________________________ File Number: CD87243 Case Number: LCR11247 Section / Act: S67 Parties: ECCO LTD - and - AEU;ETU;NEETU |
Dispute concerning the up-dating of an early start payment.
Recommendation:
5. The Court having considered the submissions from both parties
recommends concession of the Unions' claim that the early start
payment be up-dated by the same percentage increase as has been
applied to the basic wage rate since 1st March, 1983. The new
rate to be applied from 1st March, 1987.
The Court further recommends that the early start payment be
revised in future in line with basic pay.
Division: Ms Owens Mr Shiel Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87243 THE LABOUR COURT LCR11247
CC861859 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11247
PARTIES: ECCO LIMITED
AND
AMALGAMATED ENGINEERING UNION,
ELECTRICAL TRADES UNION AND
NATIONAL ENGINEERING AND ELECTRICAL TRADE UNION
Subject:
1. Dispute concerning the up-dating of an early start payment.
Background:
2. The Company which was established in 1966 employs
approximately 400 workers and manufactures discrete
semiconductors for U.S. and European markets. The Company, as
part of its energy conservation programme introduced a system in
1974 whereby an electrician and a fitter were required to report
for duty early to "warm-up" the machines for the 7.00 a.m. shift.
For this, the workers were paid at the appropriate overtime rate.
In 1982 following negotiations between the Company and the Unions'
an agreement was reached whereby a flat rate payment for the early
start was introduced. The payment totalled #48 a week, #12 for
Monday 6.00 a.m. start to 7.00 a.m. and #36 for Tuesday to Friday
start between 6.00 a.m. to 6.30 a.m. The payment was
retrospective to 1st December, 1981. The Unions' during
negotiations on the last couple of pay rounds sought an increase
in the early start payment. The increase was not granted by the
Company. The matter was referred to the conciliation service of
the Labour Court on 6th November, 1986. A conciliation conference
was held on 3rd February, 1987. As no agreement was possible a
referral for investigation and recommendation by the Labour Court
was received on 25th March, 1987. A Court hearing was held in
Dundalk on 19th May, 1987.
Unions' arguments:
3. (a) In 1982 as the craftsmen were reluctant to work the
shift which was of a most inconvenient nature, the
Company agreed to the enhanced early start payment.
This was in recognition of the generous savings which
would accrue to the Company.
(b) When the payment was first introduced, it represented
approximately 44% of the basic rate. The Unions' are
seeking the same percentage increase as the basic rate
increase for each pay round in order to retain the
payments relative value. (Details supplied to the
Court).
(c) In view of the high increase in electricity and fuel
bills since 1982, the savings now being effected by the
Company would be considerably more than they were in
1982.
(d) New types of machinery have been introduced which
require a warm-up period otherwise production workers
would not be able to commence production until 7.30
a.m., a situation which would not be in the best
interests of the efficiency of the Company.
Company's arguments:
4. (i) It was understood by the Company negotiators at the
time the early start payment was increased that in
view of the generous nature of the increase granted
that it would not become part of future settlements
until such time as the over-time rates for craftsmen
by-passed the payment.
(ii) The Company are resisting the Unions' claim for a
backdated increase because such an increase would no
longer make the early start payment feasible or cost
effective. Originally intended as a cost saver on
the grounds that it permitted energy conservation the
savings since 1984/1985 have not been substantial
with the boilers running round the clock to provide
heat for the night shift.
(iii) The early start payment remains considerably in
excess of the current overtime rates and as such more
than adequately compensates those craftsmen who are
required to work early.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends concession of the Unions' claim that the early start
payment be up-dated by the same percentage increase as has been
applied to the basic wage rate since 1st March, 1983. The new
rate to be applied from 1st March, 1987.
The Court further recommends that the early start payment be
revised in future in line with basic pay.
~
Signed on behalf of the Labour Court.