Labour Court Database __________________________________________________________________________________ File Number: CD88371 Case Number: LCR11965 Section / Act: S67 Parties: DOUWE EGBERTS LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claims by the Union on behalf of 19 workers as follows:- (a) Compensation for loss of earnings for 7 greaser/cleaners arising out of re-organisation. (b) Compensation for 12 workers arising out of the elimination of the Cutting Room Allowance.
Recommendation:
9. Having considered the submissions made the Court recommends as
follows:
Greaser Cleaners
(a) On the question of the special allowance the Court is of
the opinion that this allowance clearly related to the
conditions obtaining under the 4 shift operation which
now no longer apply. For this reason the Court
recommends that this payment should cease 2 weeks after
the date of issue of this recommendation and that the
formula for compensation already accepted by other
workers in the Company be used to calculate the amount of
compensation to be paid. The Court notes that the 20%
premium applies to the Greaser Cleaners on day work and
recommends the same formula be used to compensate for the
reduction of the Greaser Cleaners shift premium from
20.75% to 20%.
(b) The Court accepts that the Senior Greaser Cleaners cannot
be incorporated into the rota to do day work and does not
therefore recommend that this claim be conceded.
(c) The Court recommends that the parties further negotiate
the question of the operation of the security system by
the Senior Greaser Cleaners taking into account the extra
responsibility involved.
Cutting Room
10. Due to the lack of clarity as to the basis on which this
allowance was first introduced the Court considers that
in view of the fact that many of the same conditions may
still apply recommends that the allowance should continue
for the time being.
Division: Mr O'Connell Mr Heffernan Mr O'Murchu
Text of Document__________________________________________________________________
CD88371 RECOMMENDATION NO. LCR11965
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: DOUWE EGBERTS LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claims by the Union on behalf of 19 workers as follows:-
(a) Compensation for loss of earnings for 7 greaser/cleaners
arising out of re-organisation.
(b) Compensation for 12 workers arising out of the
elimination of the Cutting Room Allowance.
GENERAL BACKGROUND:
2. Local discussions failed to resolve the above mentioned claims
and the matters were referred to the conciliation service of the
Labour Court on 4th February, 1988. No agreement was reached at a
conciliation conference held on 29th March, 1988, and the dispute
was referred to the Labour Court for investigation and
recommendation. A Court hearing took place on 14th June, 1988, in
Mullingar.
BACKGROUND:
Claim (a)
3. Following local agreement on a reduction in the number of
greaser/cleaners employed from 8 to 7, the Company at a meeting on
16th February, 1988, outlined proposed changes of the
greaser/cleaner crews arising out of a decrease in workload. The
proposals were as follows:
Early Shift: 05.10 to 13.30 by 3 greaser/cleaners
Late Shift: 16.30 to 00.50 by 3 greaser/cleaners
One greaser/cleaner on daywork to do lunchbreaks, overhauls,
etc. and to fill in on holidays, sickness, etc.
One shift greaser/cleaner to close up and set alarm system,
also open/close gates.
Shift premium for early and late shift to be 20% of basic, as
against current average of 20.75%, i.e. £1.48 less per week.
No shift premium for greaser/cleaner on daywork.
Special allowance of £11.69 per week to be discontinued.
The Company's proposals were rejected by the Union.
UNION'S ARGUMENTS:
4. 1. Under the new system there is 1 less worker which means
that there is a greater workload on each individual. In the
past the Company has increased the earnings of groups who have
had increased workloads. If the reason for the change is to
reduce costs then the Union would argue that a substantial
saving has already been made by reducing the crew from 8 to 7.
It is unfair to reduce the earnings of those remaining.
2. The new system is unfair when compared with the old system
since the old system allowed all workers to rotate through all
shifts. The new system does not allow this and puts the
workers and their families in danger from criminals since they
would become keyholders.
3. The workers pay and conditions is governed by what happens
in the other main tobacco firms. Recently another company
introduced a new wage structure which resulted in certain jobs
having their basic wage reduced. However, the employees
presently occupying these positions carried their old rates on
a personal basis.
4. The original special allowance paid to greaser/cleaners
was introduced because their shift pattern had them working
into what would be commonly recognised as a 3rd cycle shift
i.e. after 12 midnight and before 6 a.m. The new arrangement
does not change this system, therefore, the original reason
for the payment still exists and to remove it is unjustified.
5. The Union believes that the workers should not lose
financially as a result of the changes, that all workers
should rotate between day and night shift and that they should
not have to take on security duties.
COMPANY'S ARGUMENTS:
Claim (a)
5. 1. As a result of changing from the old 4 shift system to a
new 2 shift system, the workers concerned lose 0.75% shift
premium per week i.e. £1.48.
2. The greaser/cleaners also receive a special allowance of
£11.69. This special allowance was for a specific agreement
on cover for shift. The agreement specifically stated that
the Company reserved the right to renegotiate the special
allowance payment should a change in shift schedule warrant
it. The Union was aware that the allowance would terminate if
the shift schedule changed.
3. A change in shift schedules has now been agreed and
therefore there is no basis for the continuance of the
allowance. It was paid for specific conditions and these
conditions have now been removed.
4. The Company has offered to compensate the greaser/cleaners
for both the loss in shift premium and the loss of the special
allowance in accordance with the formula agreed and accepted
by another section of workers in the plant in March, 1988.
That formula was as follows:
3 consecutive years shift prior to end of 1987 - lump sum 18
times average weekly loss.
2 consecutive years shift prior to end of 1987 - lump sum 14
times average weekly loss.
1 year shift prior to end 1987 - lump sum 9 times average
weekly loss.
BACKGROUND:
Claim (b)
6. An allowance of £1.50 per week was introduced for cutting room
workers in 1982, following the introduction of a cutting, drying
and flavouring machine. This process was discontinued in 1985.
The Company proposed discontinuing the allowance, however, this
was rejected by the Union.
UNION'S ARGUMENTS:
7. 1. The payment was introduced after the Union had established
that there were similar payments in other companies. The
allowance was claimed and paid for on the total conditions.
There has been no change in the prevailing conditions and the
allowance should continue.
2. The workers receiving the allowance are the only workers
directly handling tobacco. Tobacco is a dirty and smelly
product and the small allowance received hardly compensates
for the unpleasantness involved. Removal of the allowance
will produce a minimal saving for the Company and will create
a loss of goodwill that cannot be measured in cash terms.
COMPANY'S ARGUMENTS:
8. The Company proposes termination of the cutting room allowance
on the same basis as claim (a).
COMPANY'S GENERAL ARGUMENT:
9. The Company maintains that failure of the above proposals
being accepted will result in an anomalous and precedent setting
situation, whereby workers would retain payments in respect of
specific working conditions in situations where those working
conditions no longer apply.
RECOMMENDATION:
9. Having considered the submissions made the Court recommends as
follows:
Greaser Cleaners
(a) On the question of the special allowance the Court is of
the opinion that this allowance clearly related to the
conditions obtaining under the 4 shift operation which
now no longer apply. For this reason the Court
recommends that this payment should cease 2 weeks after
the date of issue of this recommendation and that the
formula for compensation already accepted by other
workers in the Company be used to calculate the amount of
compensation to be paid. The Court notes that the 20%
premium applies to the Greaser Cleaners on day work and
recommends the same formula be used to compensate for the
reduction of the Greaser Cleaners shift premium from
20.75% to 20%.
(b) The Court accepts that the Senior Greaser Cleaners cannot
be incorporated into the rota to do day work and does not
therefore recommend that this claim be conceded.
(c) The Court recommends that the parties further negotiate
the question of the operation of the security system by
the Senior Greaser Cleaners taking into account the extra
responsibility involved.
Cutting Room
10. Due to the lack of clarity as to the basis on which this
allowance was first introduced the Court considers that
in view of the fact that many of the same conditions may
still apply recommends that the allowance should continue
for the time being.
~
Signed on behalf of the Labour Court
John O'Connell
________________________
19th July, 1988. Deputy Chairman
B.O'N./J.C.