Labour Court Database __________________________________________________________________________________ File Number: CD87933 Case Number: LCR11734 Section / Act: S67 Parties: NENAGH TEXTILE MILLS LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Dispute concerning the calculation of future holiday entitlements for 36 workers.
Recommendation:
9. Having considered the submissions made by the parties and
noting the difficult trading position of the Company, the Court
recommends that the annual holiday entitlements of the claimants
should be calculated (by reference to the actual time worked) as a
proportion of the 20 days annual leave entitlement previously
established by agreement.
Division: Mr Fitzgerald Mr Collins Mr O'Murchu
Text of Document__________________________________________________________________
CD87933 RECOMMENDATION NO. LCR11734
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: NENAGH TEXTILE MILLS LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Dispute concerning the calculation of future holiday
entitlements for 36 workers.
BACKGROUND:
2. The Company was formed in 1953. It is engaged in the spinning
of open-end and fancy yarn and are weavers of acrylic and dupion
curtain fabrics. The Company employs 36 operatives.
3. The holiday year runs from August to August. The Company
closes annually for 15 days; the last week of July and the first
two weeks of August; three or four days at Christmas/New Year,
one day on Good Friday and one day in June or St. Patrick's
week-end. This latter day is dependant on the number of days
taken at Christmas. The workers have in total 20 days annual
leave a year.
4. Due to a decline in the Company's business it became necessary
to introduce short-time working in 1982. In 1987 the incidence of
short-time working increased which resulted in some workers not
having worked the required number of hours in order to qualify for
annual leave in accordance with the Holidays (Employees) Act,
1973. The Company informed the workers concerned that they would
not be paid holiday money for the annual shut-down, and that
workers with pro-rata holiday entitlement would be paid
accordingly.
5. This led to a dispute situation within the Company. Following
discussions it was agreed to refer the question of future holiday
entitlements to the Conciliation Service of the Labour Court. The
matter was referred to the Court on 10th August, 1987. The
Company wish to grant holiday entitlement in accordance with the
Holiday (Employees) Act, 1973. The Union are seeking 20 days
annual leave for all workers irrespective of the amount of
short-time worked.
6. A Conciliation Conference was held on 29th September, 1987.
As no agreement was possible both parties agreed to refer the
matter to the Labour Court for investigation and recommendation.
A Court hearing was held in Limerick on 16th February, 1988, a
date suitable to both parties.
UNION'S ARGUMENTS:
7. 1. The claim before the Court is equitable because the
workers concerned have given the Company long years of
service. They have already suffered heavy losses by
acceptance of short-time working.
2. It is a long established practice that 20 days annual
leave would be granted. During negotiations on the Plant
Agreement (no longer in operation), it was agreed that 20
days annual leave would be granted even though short-time
working was in operation. Also at separate negotiations it
was agreed that shift premium would be retained by shift
workers who transfer to day work during short-time working.
Therefore, there was local agreement endorsed by custom and
practice that conditions would not be altered during
short-time working. The Company are trying to unilaterally
suspend agreed conditions of employment.
3. It is incumbent on the Court to support the Union's claim
on the basis of long established practice and also to
preserve the principle that the Company cannot in a cavalier
fashion alter established practices without going through
established procedures.
COMPANY'S ARGUMENTS:
8. 1. The Company is still on short-time working - i.e. three
days per fortnight in all areas except spinning, and some
auxiliary duties which are on a three day week. This
reflects the very difficult trading position and the low
level of activity in the factory, inspite of sustained
efforts by the Company to develop new markets in Europe.
2. The Company has been trading at a loss for some
considerable time and is now experiencing severe financial
problems. They cannot afford to increase costs in relation
to their present low level of activity. It is essential that
all unearned costs be eliminated.
3. The Company has applied and is willing to apply the terms
of the Holiday (Employees) Act and believe that in the
current difficult circumstances this is fair and reasonable.
RECOMMENDATION:
9. Having considered the submissions made by the parties and
noting the difficult trading position of the Company, the Court
recommends that the annual holiday entitlements of the claimants
should be calculated (by reference to the actual time worked) as a
proportion of the 20 days annual leave entitlement previously
established by agreement.
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Signed on behalf of the Labour Court
7th March, 1988 Nicholas Fitzgerald
M.D./P.W. Deputy Chairman