Labour Court Database __________________________________________________________________________________ File Number: CD87626 Case Number: LCR11402 Section / Act: S67 Parties: JOHNSTON, MOONEY AND O'BRIEN - and - FWUI;BFWAU;BFWAU |
Loss of earnings formula.
Recommendation:
5. The Court having carefully considered the submissions made by
the parties, recommends that the Company and the unions should
accept the ceiling for loss of earnings contained in the
Industrial Relations Officer's proposals of 16th June, 1987.
Division: Mr Fitzgerald Mr Shiel Mr O'Murchu
Text of Document__________________________________________________________________
CD87626 THE LABOUR COURT LCR11402
CC861896 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11402
PARTIES: JOHNSTON, MOONEY AND O'BRIEN LIMITED
(Represented by the Federated Union of Employers)
and
BAKERY AND FOOD WORKERS' AMALGAMATED UNION (B.F.W.A.U.)
FEDERATED WORKERS' UNION OF IRELAND (F.W.U.I.)
Subject:
1. Loss of earnings formula.
Background:
2. In 1986 the Company sought various changes in the
confectionery bakery and bread bakery operations arising from a
deteriorating trading environment. These changes included
redundancies and changes in work practices which in some instances
would result in a loss of earnings. As agreement could not be
reached at local level the matter was referred to the conciliation
service of the Labour Court on 17th November, 1986. Following a
series of Labour Court conciliation conferences in January, 1987,
settlement proposals were formulated. The Unions did not find
these proposals to be fully acceptable however and further
conciliation conferences were held on 24th March, 1987, and 16th
June, 1987. In a document dated 16th June, 1987, the Industrial
Relations Officer of the Court set out final settlement proposals.
These were accepted by the Unions with the exception of the
formula for compensation for loss of earnings. This provided for
compensation of 18 times the weekly loss in certain instances and
39 times the weekly loss in certain other instances. The ceiling
for loss of earnings payment would be #3,000 (gross) plus 10% of
any amount over #3,000. The Unions objected to the imposition of
a ceiling. The No. 1 branch of the B.F.W.A.U. took industrial
action on 5th and 6th July, 1987. Following a meeting with
management it was agreed to refer the matter to a full hearing of
the Labour Court. The hearing took place on 24th August, 1987.
Unions' arguments:
3. (i) The Unions consider that the concessions already made
constitute major on-going savings for the Company and
substantial loss of overtime earnings to the
employees.
(ii) The Unions do not accept that a ceiling should be
imposed on loss of earnings payments and are seeking a
substantial improvement in the offer.
(iii) A rationalisation programme in 1985 following
investigation and recommendation by a Rights
Commissioner did not include any such ceiling on loss
of earnings payments.
Company's arguments:
4. (a) The bakery industry is experiencing the worst trading
period of its history. The Company has sustained
substantial losses necessitating redundancies and
changes in work practices.
(b) The Company has made substantial concessions
concerning loss of earnings compensation in the
interest of reaching agreement on the total package.
The costs of funding the package are substantial. The
Company originally stated that compensation for loss
of earnings should not exceed the minimum redundancy
sum of #1,500. It was hoped that a #3,000 ceiling
would secure a settlement on the total package.
(c) The industrial action taken had no regard to the
critical trading situation and the adverse
consequences which such action could have. It did in
fact cause substantial losses and adversely affected
customer goodwill. It also ignored normal industrial
relations procedure.
(d) Because of the Union's rejection of the loss of
earnings proposal and the industrial action taken the
Company is withdrawing the offer of 10% of loss above
#3,000.
RECOMMENDATION:
5. The Court having carefully considered the submissions made by
the parties, recommends that the Company and the unions should
accept the ceiling for loss of earnings contained in the
Industrial Relations Officer's proposals of 16th June, 1987.
~
Signed on behalf of the Labour Court
10th September, 1987 Nicholas Fitzgerald
A.K./P.W. Deputy Chairman