Labour Court Database __________________________________________________________________________________ File Number: CD87209 Case Number: LCR11216 Section / Act: S67 Parties: WATERFORD CRYSTAL LTD - and - NEETU;ETU |
Claim for compensation payment for upgrading of skills resulting from the introduction of Natural Gas to the Company.
Recommendation:
6. The Court, having considered carefully the extent of the
upgrading of skills, considers that it is already within the level
of competence and skill for which these craftsmen are paid.
The Court does not therefore recommend concession of the claim.
Division: CHAIRMAN Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD87209 THE LABOUR COURT LCR11216
SECTION 67 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11216
Parties: WATERFORD CRYSTAL LIMITED
and
NATIONAL ENGINEERING & ELECTRICAL TRADE UNION
ELECTRICAL TRADES UNION
Subject:
1. Claim for compensation payment for upgrading of skills
resulting from the introduction of Natural Gas to the Company.
Background:
2. This claim arises from the change by the Company to the use of
Natural Gas. It is made on behalf of 20 fitters, 5 electricians,
4 carpenters and 1 painter. In October, 1986 the Unions lodged a
claim for compensation for upgrading of the workers' skills
arising from the conversion to Natural Gas. The Unions later
quantified the claim as being for a once off compensation payment
of #4,000 per annum. The Company rejected the claim.
3. No agreement was reached through local negotiations and on 9th
December, 1986 the matter was referred to the conciliation service
of the Labour Court. A conciliation conference was held on 29th
January, 1987 but no agreement was reached. On 16th March, 1987
the case was referred to the Court for investigation and
recommendation. A Labour Court hearing was held on 15th April,
1987 in Waterford.
Union's arguments:
4. (i) The workers had to acquire additional skills and
knowledge in order to maintain the machinery which is
now using Natural Gas. To obtain these new skills the
workers received special training. This has been
provided by a short course given by representatives of
the Company who installed the new system and by special
courses set up by AnCO to familiarise the workers with
the maintenance of machinery and equipment which has
been transferred from other sources of energy to Natural
Gas.
(ii) A settlement was negotiated through the ESB Industrial
Council for compensatory payments when the Poolbeg
Generating Station transferred from Oil to Natural Gas.
Settlements have also been reached in private
industries.
(iii) The Company has stated that savings in the region of
three quarters of a million pounds over a period of time
will result from the introduction of Natural Gas.
Unless the installation and maintenance of Natural Gas
in every plant is carried out with the utmost skill it
can have disastrous results.
Company's arguments:
5. (a) General work on Plant and Equipment to include
commissioning, installation and line maintenance, are and
have been an integral part of a craftsman's normal duties
as per his designated apprenticeship.
(b) The maintenance of gas pipelines is already an
established norm within the terms of reference of any
craftsman in the Company's employment, through years of
experience, acquired on the maintenance of Town and
Propane Gas pipelines.
(c) Maintenance of Natural Gas required up to four (4) days
familiarisation training only. The Company, played a
supportive role and provided considerable financial
investment to enable the training to be carried out
systematically.
(d) In a substantial number of companies no specialised
training in skills or knowledge was required or
implemented as a result of the introduction of Natural
Gas in manufacturing processes. Only one of these
companies found it necessary to provide formal training
on a formal basis, and in this case only one and a half
days was deemed necessary. None of these companies made
any special payments for the introduction of Natural Gas.
(e) In its Recommendation No. 1555 of March 12th, 1986, the
ESB Industrial Council rejected a claim by ESB General
Operatives, arising from the conversion to gas.
(f) Craftsmens' earnings in the Company are substantially
higher than those achieved by the Craftsmen in the ESB.
Selective isolated concessions made to ESB craftsmen
fitters only (electricians excluded), and for those
employed in a particular year only, is not a justifiable
basis for serving a parity claim on the Company.
(g) Concession of this claim would create anomalies with
other categories of workers and would also result in a
serious anomaly arising between fitters and electricians.
(h) Concession of this claim would not only create anomalies
with other categories of employees but would result in a
more serious anomaly arising between Waterford Crystal
Fitters and Electricians, who on their own admission have
always maintained parity with each others' category as no
differential is sought or recognised by either the
Company or the Union in respect of electrical or
mechanical pay rates.
(i) The Company's manufacturing cost reduction programme is
not designed to create involuntary redundancies or loss
of earnings to the craft workers. It has become
necessary to maintain volume sales abroad on a
competitive basis.
(j) The Company's products must compete abroad in open
markets, unlike the ESB which has a solely sound and
protected home market. Comparisons with selective
special payment made within the context of ESB pay
structures and the pay structure of the Company are not
justifiable, especially on the basis of the concession
made to the fitters in Poolbeg.
Recommendation:
6. The Court, having considered carefully the extent of the
upgrading of skills, considers that it is already within the level
of competence and skill for which these craftsmen are paid.
The Court does not therefore recommend concession of the claim.
~
Signed on behalf of the Labour Court
John M. Horgan
----------------
26th May, 1987
TO'M/PG Chairman