Labour Court Database __________________________________________________________________________________ File Number: CD87606 Case Number: LCR11510 Section / Act: S67 Parties: HEITON MCFERRAN - and - ATGWU |
Payment for handling new products.
Recommendation:
5. The Court finds that the handling of the new products is
within the terms of existing agreements and recommends that they
be handled without additional compensation.
Division: CHAIRMAN Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD87606 THE LABOUR COURT LCR11510
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11510
PARTIES: HEITON MCFERRAN LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Payment for handling new products.
BACKGROUND:
2. In response to trading difficulties over the past number of
years the Company has changed its trading policies in order to
maintain its viability. The nine workers here concerned are
employed in the Waterford branch of the Company. That depot
secured a distributorship for fertilizers in the South-East area.
When the workers were advised of the Company's intention to
distribute fertilizer the Union submitted a claim for a 10%
increase on the basic rate for the handling of new products. The
Company rejected this claim. No progress could be made at local
level discussions and the matter was referred to the conciliation
service of the Labour Court. No basis for a settlement was
reached at a conciliation conference held on 23rd April, 1987 and
on 4th August, 1987 the matter was referred to the Labour Court
for investigation and recommendation. A Court investigation into
the dispute was held in Waterford on 14th October, 1987.
Union's arguments:
3. (i) The handling of fertilizers is a totally new departure
for the Waterford depot, which has always been treated
separately by the Company. That depot is essentially
a builders' providers and a supplier of decor material
and products to the DIY enthusiast.
(ii) The present agreement does not suit the Union side.
It was negotiated at a time when no diversification of
products/markets was foreseen.
Company's arguments:
4. (a) The seriousness of the Company's position cannot be
overemphasised (details supplied to the Court). The
enormous financial losses incurred over the past years
must be understood and recognised by all. Management
has a responsibility to do all in its power to return
the business to profitability, thus protecting the jobs
of those currently employed by the Company in
Waterford. Any moves to frustrate these efforts can
only result in serious consequences.
(b) It is true to say that the Company is a provider to the
building and construction industry but it is also a
supplier to the engineering, agricultural and fisheries
industries apart from involvement in the D.I.Y. market.
The Company has always been conscious of the necessity
to secure new lines, new products, new materials and
indeed throughout the years there has never been the
slightest difficulty in the introduction of these to
any or all sales outlets.
(c) Many of the Company's competitors are already involved
in the handling of fertilizers as a normal stock line.
(d) In order to manage the business in a professional
fashion the Company must have the right to determine
what products or materials are stocked or sold by the
Company at any time. The Company/Union house agreement
states that:
" All employees agree to handle/document and
familiarise themselves with all materials and products
stocked or sold by the Company at present or in the
future."
(e) This issue is not limited to fertilizers: it involves
management's responsibility to decide what
products/materials will be stocked/sold now or at any
time in the future; and that an employee will handle
all goods as part of normal work within the parameters
of basic pay.
(f) The Company has undertaken to introduce a self-funding
bonus scheme once the branch returns to profitability.
RECOMMENDATION:
5. The Court finds that the handling of the new products is
within the terms of existing agreements and recommends that they
be handled without additional compensation.
~
Signed on behalf of the Labour Court.
John M Horgan
4th November, 1987. --------------
R. B. / M. F. Chairman.