Labour Court Database __________________________________________________________________________________ File Number: CD88755 Case Number: LCR12150 Section / Act: S67 Parties: TECH INDUSTRIES LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS UNION |
Claim by the Union for compensation for loss of earnings on behalf of 3 workers in the metallising department and 3 workers in the spraying department.
Recommendation:
5. Having considered the submissions from parties, the Court does
not recommend concession of the claim.
Division: Ms Owens Mr Collins Mr Walsh
Text of Document__________________________________________________________________
CD88755 RECOMMENDATION NO. LCR12150
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: TECH INDUSTRIES LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claim by the Union for compensation for loss of earnings on
behalf of 3 workers in the metallising department and 3 workers in
the spraying department.
BACKGROUND:
2. The Company is engaged in the manufacture of closures for the
cosmetic industry and employs 125 workers at its plant in
Waterford. Many of the Company's orders relate to the Christmas
period and are in production in the high season from April, to
September. The months from September to April each year see a
substantial drop in production. In September, 1986, the Company
introduced a new timetable for metallising which involved a
reduction in workload of 10%. As a result 2 operators lost 25
hours overtime per week and 1 operator lost 20 hours. In May,
1987, a further change occurred when the workload increased by 10%
on the pre-September, 1986, levels. The Union claims that between
September, 1986, and August, 1988, the overall loss of earnings
for the 3 operators concerned was #9,159 (details supplied to the
Court). In the spraying department there was a drop of 10% in the
workload from September, 1986, to May, 1987, resulting in a total
loss between the 3 operators concerned of #2,392. The Company
rejected the Union's claim for compensation and on 8th December,
1987, the dispute was referred to the conciliation service of the
Labour Court. No agreement could be reached at a conciliation
conference held on 14th January, 1988. On 10th October, 1988, the
dispute was referred to the Labour Court for investigation and
recommendation. The Court investigated the dispute on 23rd
November, 1988, in Waterford.
UNION'S ARGUMENTS:
3. 1. The workers concerned have always worked the overtime
hours necessary to meet the Company's requirements. Their
overtime earnings have been an integral and necessary part of
their remuneration. They have always accepted that the
overtime available depends on the level of activity within the
Company. The Union has taken into account the 10% fluctuation
in workload when formulating the workers' losses.
2. It is a well established principle that where overtime is
a regular feature and when it is reduced or eliminated through
re-organisation, the workers affected are entitled to be
compensated. The established overtime hours up to September,
1986, were 25 hours per worker per week in the metallising
department and 15 hours per worker per week in the spraying
department.
3. In the circumstances of the case the Union considers that
an amount equal to 33.3% of the loss would be appropriate
compensation.
COMPANY'S ARGUMENTS:
4. 1. The Company maintains that it has no case to answer. In
order to maintain a claim for compensation for loss of
overtime earnings, it is at least necessary to show that there
has been an actual loss. This has not been the case.
Comparing 1987 to 1986 overtime hours in the 2 departments has
in fact increased. Production records also show that during
the same period productivity levels in the 2 departments in
fact decreased (details supplied to the Court).
RECOMMENDATION:
5. Having considered the submissions from parties, the Court does
not recommend concession of the claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
_______________________
1st December, 1988. Deputy Chairman
B.O'N./J.C.