Labour Court Database __________________________________________________________________________________ File Number: CD87550 Case Number: LCR11466 Section / Act: S67 Parties: WELLMAN INTERNATIONAL LTD - and - ITGWU |
Claim, on behalf of approximately 180 four-shift operatives, for a restructuring on their pay system.
Recommendation:
5. The Court, having considered the submissions made by the
parties, recommends that the shift allowance should be maintained
as at present. The Sunday Allowance should be spread over the
working week. The effect of this change on Sunday attendance
should be reviewed jointly at six-monthly intervals and if the
attendance levels fall below existing levels, then the Company
shall be free to revert to the present system.
Division: Mr Fitzgerald Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87550 THE LABOUR COURT LCR11466
CC86907 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11466
PARTIES: WELLMAN INTERNATIONAL LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION (CAVAN BRANCH)
Subject:
1. Claim, on behalf of approximately 180 four-shift operatives,
for a restructuring on their pay system.
Background:
2. The claimants' working pattern is 4 x 12 - hour shifts and 3 x
12 - hour shifts on alternate weeks (48 hour and 36 hour week
respectively). They are paid the same sum of money each week,
assuming full attendance, which is the equivalent of the average
of the two weeks' earnings. The following is a breakdown of
earnings (grade 4 operatives) -
36 hour week 48 hour week
#138.59 - hours x #3.8498 - #184.79
22.00 - shift allowance (14.28%) - 22.00
16.96 - Supplementary hours allowance - 16.96
46.20 - Sunday Allowance (12 hours)
#223.75 #223.75
Sunday is part of the working week on alternate weeks and carries
a plus payment of #46.20 as described above. There is no plus
payment for Saturday working. The shift allowance is considered
to be the equivalent of 34.28% of basic pay, made up of two
constituent parts - 14.28% of basic pay and 12 hours pay (i.e.
Sunday allowance). The Union's claim is that the shift allowance
should be identified as a separate entity at 34.28% of basic pay.
It should not include any payment related to Sunday working.
Sunday, in turn, should be treated as a normal day. The Company
rejected the claim on the basis that as the plant was required to
be in continuous operation, a special Sunday premium was necessary
to ensure an adequate staffing level on that day. Local level
discussions failed to resolve the issue and on the 19th March,
1987, the issue was referred to the conciliation service of the
Labour Court (originally referred in June, 1986, but withdrawn
because of the danger of impeding progress on the 1986 wage
claim). No progress was made at a conciliation conference held on
the 24th June, 1987, (earlier dates unsuitable to the parties) and
the matter was referred to the Labour Court for investigation and
recommendation. A Court hearing was held on the 24th September,
1987 - the earliest date suitable to all parties.
Union's arguments:
3. (a) It is clear that the twelve hours' plus payment on
Sunday is intended to be an incentive to the staff to
report in to work. Should a worker miss a Sunday, he
will lose twelve hours' normal pay, twelve hours'
Sunday pay plus two supplementary hours (total
#109.36).
(b) Workers in other grades who are on similar 4 - shift
systems enjoy the system which the workers concerned
are claiming. There is no reason why the claimants
should be treated less favourably than other grades
within the Company.
(c) The Union is not seeking to undermine the Company's
need for proper attendance at the week-end but it is
satisfied that the existing system is intrinsically
unfair. There is a Perfect Attendance Bonus payable
every two months and, by the Company's own admission,
the number of beneficiaries has exceeded expectations.
Therefore, there is a keen awareness among all
employees of the need to maintain a full and proper
attendance at work and the proposed change in the wage
system would not in any way be crucial or detrimental
to attendance figures.
(d) The existing system, which splits the shift allowance
into two distinct parts, is contrary to established
practice throughout industry. Regardless of whether
the system is a 2, 3 or 4 - shift pattern, the
calculation of shift allowance is a straight
percentage of basic rate.
(c) A further anomaly in this system is that if Sunday is
taken as part of one week's annual holidays, it counts
as one shift. Yet, if it is taken as an individual
day/shift it is counted as two shifts. The Union
sought special consideration of this aspect of the
matter and again the Company refused to make any
alteration in the system.
Company's arguments:
4. (i) The effect of the Union's claim would be to remove the
double time payment for Sunday working and have
payment made based on actual hours worked, resulting
in payment of wages for 48 hours worked in one week,
followed by a lower payment for 36 actual hours
worked, in the alternate week.
(ii) The proposed change would lead to a serious escalation
of absenteeism on Sundays. Current level of
absenteeism (July '86/July '87) is as follows -
Monday - Friday (inclusive) - ranges between 4.5% &
6.8%
Sundays - ranges between 1.8% and 2.7%.
(iii) If the Company was to concede, then it follows that it
would suffer absenteeism levels in excess of current
week-day levels, which could not be tolerated.
(iv) The double time premium paid for Sunday working has
proved to be an incentive to entice employees to come
to work on Sundays.
/....
RECOMMENDATION:
5. The Court, having considered the submissions made by the
parties, recommends that the shift allowance should be maintained
as at present. The Sunday Allowance should be spread over the
working week. The effect of this change on Sunday attendance
should be reviewed jointly at six-monthly intervals and if the
attendance levels fall below existing levels, then the Company
shall be free to revert to the present system.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
15th October, 1987 --------------------
D.H./P.W. Deputy Chairman