Labour Court Database __________________________________________________________________________________ File Number: CD/88/227 Case Number: LCR11879 Section / Act: S67 Parties: SHANNONSIDE CO-OPERATIVE LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claims on behalf of 12 supervisors for a productivity payment i.e. an increase in basic pay of 5% from 1st January, 1986; an increase of 6% from 1st April, 1987, under the 27th Wage Round for a period of twelve months; and a payment of £150 to each worker which was deducted as a result of an unofficial dispute.
Recommendation:
13. Having considered the submissions made by the parties, the
Court recommends that the claimants accept the Company's offer in
respect of the 27th round made at Conciliation i.e. -
3% effective from 1st April, 1987
and
1½% effective from 1st October, 1987
The Agreement to cover 16 months and to be followed by the
National Plan.
The Court also recommends that the Company pay to each of the
claimants a lump sum of £300 in full and final settlement of their
other claims.
Division: Mr Fitzgerald Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD88227 RECOMMENDATION NO. LCR11879
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: SHANNONSIDE CO-OPERATIVE LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claims on behalf of 12 supervisors for a productivity payment
i.e. an increase in basic pay of 5% from 1st January, 1986; an
increase of 6% from 1st April, 1987, under the 27th Wage Round for
a period of twelve months; and a payment of £150 to each worker
which was deducted as a result of an unofficial dispute.
GENERAL BACKGROUND:
2. The Company is an Irish based Co-operative which employs 120
people during peak operations in the processing of skim milk into
Casein Fat-Filled products and Skim Milk Powder.
3. The plant commenced operations in 1972 as part of a British
based private enterprise. The plant was designed to manufacture
Fat-filled products, specifically "Millac" which is a whole milk
substitute and which then had a reasonable share of the very
competitive Whole Milk Substitute market in the Canary Islands
and, to a lesser extent, in Britain. In May, 1974, the Plant was
purchased by Shannonside Milk Products Co-op Ltd. and included in
the sales contract was an agreement to supply to another Company
at least 9500 tonnes of Millac for a period of seven years. The
remainder of the annual milk intake was manufactured into Skim
Milk Powder and marketed through An Bord Bainne.
4. In recent times, the Co-op has developed and marketed its own
line of Fat-Filled products in order to remain viable.
PRODUCTIVITY BACKGROUND:
5. In 1986, the Union claimed an increase of 5% in basic rates
from 1st January, 1986. It based this claim on one conceded to
the general workforce in respect of the introduction of new
technology and following an evaluation carried out by the Irish
Productivity Centre. The agreement reached in 1983 provided for
the once-off payment of a lump sum of £200 and an increase of 3%
for hourly paid workers.
6. The Company rejected the claim on the basis that it already
had paid for on-going productivity as part of an agreement reached
in June, 1981, which put the supervisors on a salary structure as
compared with an hourly structure as previously.
27th WAGE ROUND INCREASE:
7. The Union lodged a claim for an increase of 6% for twelve
months effective from 1st April, 1987. The Company rejected the
claim and offered the following -
3% from 1st April, 1987
1.5% from 1st October, 1987
Duration of Agreement - 52 months from 1st April, 1987, to 1st
September, 1991, which is inclusive of
the National Pay Plan which will be
implemented from 1st August, 1988, for
the following three years.
8. This offer was rejected by the Union.
REFUND OF £150 TO EACH WORKER
9. In February, 1987, negotiations commenced on an increase for
hourly paid employees. During the negotiations an unofficial
strike took place which lasted for six days. The supervisors did
not report for work on the first two days of the strike and as a
consequence the Company deducted two days pay. The Union is
claiming a refund of this money on the basis that the workers were
not in dispute with the Company and that they met with management
on a daily basis and were instrumental in arranging the
discussions which eventually led to a return to work.
10. As the matters could not be resolved locally they were
referred to the Conciliation Service of the Labour Court on 13th
May, 1987. Conciliation Conferences were held on 24th June, 1987,
and 3rd March, 1988. The Company, at the Conciliation Conference
of 3rd March, offered, £1,000 nett lump sum to each of the workers
concerned made up under the following headings -
- retrospection due on 27th Wage Round from 1st April,
1987.
- the non-payment of £150 because of unofficial action by
the hourly paid employees which resulted in the
Supervisors non-attendance at work.
- a lump sum buy out for the productivity given.
This offer was rejected by the Union. As further progress was not
possible both parties agreed to a referral to the Labour Court for
investigation and recommendation. A Court hearing was held in
Sligo on 26th April, 1988.
UNION'S ARGUMENTS:
11. 1. Since 1982/1983 the Company has installed new machinery
in the plant which has resulted in savings in manpower and
increased production (details supplied to the Court). There
has also been a dramatic change in the type of product
manufactured (details supplied to the Court). In 1988, a new
system of dry blending will be introduced. This system will
be computer controlled and will add to the responsibilities
of the supervisors.
2. The supervisor's role has changed substantially during
the last number of years and his responsibilities have grown
as a result of all the changes both in terms of production,
and technology. He now also has to assist in drawing up
labour budgets and has assumed more clerical duties and also
the deployment of all labour which heretofore was a function
of Department Managers.
3. The Union's claim for an increase of 6% for twelve months
under the 27th Wage Round is reasonable when compared to the
settlements arrived at in other Co-operatives around the
Country (details supplied to the Court).
COMPANY'S ARGUMENTS:
12. 1. The Union has claimed that there has been a significant
increase in productivity by the supervisors. At meetings at
local level and Conciliation, it has been emphasised that
because of the increased pressure imposed by the EEC in
regard to the Superlevy, the volume of activity in this Co-op
has decreased by as much as 20%. The result of the
consolidation of overtime, shift and weekend allowances into
a salary package for the supervisors has increased the
supervisors costs to the Co-op very significantly above the
hourly paid employees.
2. It must also be highlighted that the consolidation of the
shift, overtime and weekend allowance has improved the sick
pay and pension benefits and the holiday pay. Management is
satisfied that the improvements which have resulted from a
salary structure being implemented have more than compensated
the supervisors for productivity.
3. The Company's offer put forward under the 27th Wage Round
has already been accepted by the general workforce. If the
Company was to concede the Union's claim then the hourly-paid
workers would seek a similar improvement in their offer. In
the past wage round settlements in the Co-op for one category
of worker have been implemented for all categories. This has
been the custom and practice and the Court is requested to
recommend in favour of the Company's offer.
RECOMMENDATION:
13. Having considered the submissions made by the parties, the
Court recommends that the claimants accept the Company's offer in
respect of the 27th round made at Conciliation i.e. -
3% effective from 1st April, 1987
and
1½% effective from 1st October, 1987
The Agreement to cover 16 months and to be followed by the
National Plan.
The Court also recommends that the Company pay to each of the
claimants a lump sum of £300 in full and final settlement of their
other claims.
~
Signed on behalf of the Labour Court
31st May, 1988 Nicholas Fitzgerald
M.D./P.W. Deputy Chairman