Labour Court Database __________________________________________________________________________________ File Number: CD88230 Case Number: LCR11952 Section / Act: S67 Parties: MICHAEL BYRNE & SONS LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Dispute concerning the revision of a sick pay scheme.
Recommendation:
8. Having regard to the financial position of the Company and to
the clearly urgent need to reduce excess costs associated with the
operation of the original scheme the Court recommends that the
amended sick pay scheme be accepted by the workers concerned.
Division: Mr O'Connell Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD88230 RECOMMENDATION NO. LCR11952
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: MICHAEL BYRNE & SONS LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Dispute concerning the revision of a sick pay scheme.
BACKGROUND:
2. In March, 1987, the Company wrote to the Union requesting
discussions on the Company sick pay scheme and other related
matters.
3. The Company contended that its Survival Plan was being
undermined because of high absenteeism among the workers. The
Company considered that the sick pay scheme which was then in
operation was a contributory factor towards the absenteeism rate.
It proposed to introduce changes to the scheme, which in the
Company's view, would go some way towards cutting down on
absenteeism and at the same time maintain a fair sick pay scheme.
4. The Union objected to the changes in the scheme on the basis
that it was unfair to punish the majority because of the actions
of the few and that the changes were in breach of a Company/Union
agreement. The Union also advised the Company that it would enter
into meaningful discussions regarding individuals' absenteeism
records.
5. The Company introduced the revised sick pay scheme (details in
the appendix to this recommendation) with effect from September,
1987. The Union objected to the introduction of the new scheme
and the matter was referred to the Conciliation Service of the
Labour Court on 18th January, 1988. A Conciliation Conference was
held on 1st March, 1988. As no agreement was possible both
parties agreed to a referral to the Labour Court for investigation
and recommendation. A Court hearing was held in Cork on 8th June,
1988.
UNION'S ARGUMENTS:
6. 1. During the initial discussions on the proposed changes in
the scheme, the Company produced statistics for the period
3rd - 24th January, 1987, which showed a high absenteeism
rate (details supplied to the Court). It is the Union's
contention that this period was a period of particularly bad
weather and this, combined with poor working conditions, had
resulted in the sudden increase in absenteeism.
2. It is manifestly unfair and unjust that the Company
should seek to punish all for what it has stated is abuse by
a few. If a problem exists regarding the absenteeism of
individuals, it must be discussed in a realistic way.
3. The Company, in changing the scheme arbitrarily, is in
breach of the Company/Union Agreement. It must be recognised
that in order to maintain confidence in the credibility of
negotiating structures and the retention of good industrial
relations practices, agreements cannot be changed arbitrarily
by either party.
COMPANY'S ARGUMENTS:
7. 1. As will be evident to the Court from recommendations,
LCR 10617 and LCR 11760 of March, 1988, the Company has
continued to experience serious difficulties which include a
serious financial position that requires careful cost
management. The Court will also note that, in the Company
submissions, it was emphasised that the achievement of
viability was a priority, otherwise, future risks would only
increase. It will be obvious therefore that the operation
and costs of the Sick Pay Scheme could not be viewed
separately from this reality.
2. Since the introduction of the revised scheme, the
absentee levels have improved significantly. In the period
October to December, 1987, the weekly average had reduced to
2.4% while in the first quarter of 1988, it has averaged
4.0%. During the period January to May, 1987, averages weely
absenteeism ranged from 10.7% to 24%. The effect of this in
terms of the Company's necessary objectives will be obvious
to the Court.
3. In the Scheme now in place, the relationship between net
basic rate when at work and the benefits provided are
reasonable. Of additional importance is the fact that the
costs both direct and indirect are now in line with what the
Company can afford in the context of the real priority, which
is survival through financial viability at the earliest
possible date.
RECOMMENDATION:
8. Having regard to the financial position of the Company and to
the clearly urgent need to reduce excess costs associated with the
operation of the original scheme the Court recommends that the
amended sick pay scheme be accepted by the workers concerned.
~
Signed on behalf of the Labour Court
14th July, 1988 John O'Connell
M.D./P.W. Deputy Chairman
APPENDIX A
S I C K P A Y S C H E M E
Excepting the calculation of benefit payments, all other
conditions and requirements of the Scheme remain unchanged. The
maximum payable by the Company still remains two weeks full, 10
weeks half.
Payments: Service pay will not be included for payments purposes.
Basic net pay will be calculated individually for each employee,
based on a gross basic pay of either -
1st Grade - 143.45
2nd Grade - 137.22
3rd Grade - 133.15
Account will be taken of the individuals tax and other deductions
to arrive at the net basic pay.
Account will also be taken of the individual employees benefits
derived from Social Welfare, whether single, or married with
dependant status. Reflecting these Social Welfare Benefits, the
Company cheque will "top-up" to arrive at the basic net payable.
Employee Status Normal Net Basic S.W. Company Top-Up
Examples Single £100 £42.30 £57.70
Married £110 £69.70 £40.30
No "top-up" will operate where an employee's Social Welfare
Benefits are in excess of an normal net basic pay.
Employees will not be required at any stage to refund Social
Welfare cheques to the Company. Calculation of Benefits due from
Social Welfare will be made by the Company, based on the rates
operable by Social Welfare and reflecting the individual
circumstances of the employee known to the Company. Employees
will be obliged to advise the Company of any change in
circumstances.
The examples will operate for both 2 weeks full pay and 10 weeks
half pay, but the cost to the Company shall at no stage be in
excess of the maximum gross payable for such weeks.