Labour Court Database __________________________________________________________________________________ File Number: CD87954 Case Number: LCR11683 Section / Act: S67 Parties: TARA MINES - and - T.A.S.S. (MANUFACTURING SCIENCE AND FINANCE |
Claim, on behalf of eleven workers for compensation for loss of overtime.
Recommendation:
5. Having considered the submissions of the parties the Court is
satisfied that the loss of overtime is due to difficult trading
circumstances and does not therefore recommend concession of the
Union's claim.
Division: Mr O'Connell Mr Shiel Mr O'Murchu
Text of Document__________________________________________________________________
CD87954 RECOMMENDATION NO. LCR11683
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: TARA MINES
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
T.A.S.S. (MANUFACTURING SCIENCE AND FINANCE)
SUBJECT:
1. Claim, on behalf of eleven workers for compensation for loss
of overtime.
BACKGROUND:
2. Eleven laboratory staff, eight technicians and three samplers
have, for the past ten years, provided weekend bank holiday and
emergency cover in the laboratory. Overtime was worked on a rota
basis. The samplers earned approximately #1,600 each per annum in
overtime payment while the technicians earned approximately #800
each. In August, 1987 the Company announced that this overtime
would be reduced by 50%. The Union sought compensation to the
workers concerned. No agreement being reached at local level, the
matter was referred to the conciliation service of the Labour
Court on 5th November, 1987. A conciliation conference was held
on 8th December, 1987 but again no agreement was reached and the
matter was referred to a full hearing of the Court. The hearing
took place on 21st January, 1988.
UNION'S ARGUMENTS:
3. 1. These workers have been providing weekend, bank holiday,
and emergency cover over a considerable period of time on a
rota basis. This rota has been adhered to at substantial
inconvenience to the workers concerned. Emergency call-out
was provided at ordinary overtime rates with no extra cost to
the Company for meals, telephone, etc.
2. Because the overtime was regular and has continued over
ten years, the workers' standard of living reflects this
level of earnings and they have financial commitments based
on this income. The Union believes that in these
circumstances overtime payments be gradually reduced.
Alternatively, it seeks a lump sum payment to allow for
adjustment, equivalent to a phasing out over two years.
COMPANY'S ARGUMENTS:
4. 1. It was known over the years, that as proficiency in the
use of technology improved, the need for check sampling would
reduce and consequently the amount of overtime working in the
laboratory.
2. During 1986 the operational viability of the Company was
threatened by the high cost of production, the weakening
dollar and metal prices. In January, 1987 an essential Cost
Reduction Plan was introduced. This plan included
redundancy, pay stabilisation and a reduction in overtime and
all over-head costs.
3. In order to continue in operation, prevent a shutdown and
to secure the maximum number of jobs all unnecessary costs
including avoidable overtime must be reduced. In spite of
the redundancy programme the Company incurred an operating
loss of $11m over that period. In fact, in the light of the
worsening financial situation, further reductions in all
costs are called for. In the light of this situation the
Company is not prepared to pay compensation to the claimants.
RECOMMENDATION:
5. Having considered the submissions of the parties the Court is
satisfied that the loss of overtime is due to difficult trading
circumstances and does not therefore recommend concession of the
Union's claim.
~
Signed on behalf of the Labour Court
John O'Connell
___________________________
11th February, 1988. Deputy Chairman
A.K./J.C.