Labour Court Database __________________________________________________________________________________ File Number: CD88780 Case Number: LCR12124 Section / Act: S67 Parties: INDEPENDENT NEWSPAPERS PLC - and - IRISH PRINT UNION |
Claim on behalf of sixteen workers in the Rotary Department for an increase of 6.13% on the band (productivity) rate in respect of the introduction of plastic plate printing and a web width reduction.
Recommendation:
5. Having regard to the present position of negotiations in
relation to a comprehensive agreement with the Rotary Department,
the Court is of the opinion that pending the conclusion of such an
agreement, the Company's offer of 6.13% on basic rates is
reasonable and should be accepted.
The Court so recommends.
Division: Mr Fitzgerald Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD88780 RECOMMENDATION NO. LCR12124
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: INDEPENDENT NEWSPAPERS PLC
and
IRISH PRINT UNION
SUBJECT:
1. Claim on behalf of sixteen workers in the Rotary Department
for an increase of 6.13% on the band (productivity) rate in
respect of the introduction of plastic plate printing and a web
width reduction.
BACKGROUND:
2. The Company has been involved in the restructuring of its
business since 1984. Numerous discussions have taken place with
the Unions involving significant changes in work practices and a
rationalisation programme. Labour Court Recommendation No.
LCR11193 was the basis for an increase of 6.13% to various groups
within the Company in respect of new technology. The Company and
the Union met in October, 1987 to discuss the implementation of
proposals for the restructuring of the Rotary Department. The
proposals included the introduction of plastic plate printing and
the implementation of a web width reduction. The Union indicated
that it would be seeking an increase of 6.13% on the band rate and
also improved holiday entitlements and a reduction in the working
week from 36 to 32 hours. In February, 1988 the Company made an
offer of 6.13% on the basic rate, and subsequently on productivity
rates, an extra week's holiday and a 32 hour week. This offer was
not acceptable to the Union however because of certain conditions
laid down by the Company on additional proposals under
negotiation. Despite numerous meetings at local level no
agreement was reached, and the dispute was referred to the
Conciliation Service of the Labour Court on the 16th March, 1988.
Conciliation Conferences were held on the 11th April and 18th
October 1988 but no agreement was reached. The matter was
referred to the Labour Court for investigation and recommendation
on the 21st October, 1988. A Labour Court hearing took place on
the 2nd November, 1988.
UNION'S ARGUMENTS:
3. 1. The Company contends that the technology rate of 6.13%
should apply to the notional basic rate. The Union does not
see this as being a correct application because workers in the
Rotary Department, as a result of the productivity scheme,
receive a rate of pay equivalent to the band 11 rate in the
case room. The 6.13% should be applied to the band 11 rate
which is the only rate that has applied in the Rotary
Department since the introduction of productivity in 1972.
2. The changeover to plastic plates as a result of the new
technology in the case room necessitates additional work for
the printers in setting rollers and blankets etc. Clause 34
of the Company's restructuring proposals sought a commitment
from the rotary staff to co-operate in a reduction of web
width size which would bring about substantial savings for the
Company. This web width reduction was introduced, with the
full co-operation of the staff shortly after the changeover to
plastic plates and the Union estimates that the savings to the
Company on newsprint will amount to #600,000 per annum. The
full cost of the Union's claim amounts to #17,000 per annum
and the Company's offer equates to more than 50% of this
amount. To grant the claim in full would mean an additional
payment of #7,000 per annum. This clearly shows that the
savings made by the reduction in web width more than
adequately compensates the Company for the cost involved in
applying the new technology rate to the full productivity
rate.
3. Bearing in mind that workers in the Rotary Department
operate under a Productivity Agreement and have been paid the
band 11 rate over a considerable number of years, it is
inconceivable that the Company would now seek to apply the new
technology rate to the notional basic rate, particularly as
following LCR No. 11193, the 6.13% was applied to the band 11
rate in the case room. It is important to note that the
Company had been seeking amendments to the productivity
agreement and the Union, as a consequence, had been looking
for increased holidays and a shorter working week. However,
at the last local meeting the Company withdrew all of these
matters, leaving only the question of the rate to which the
6.13% should be applied. The Union would like to stress that
the members in the Rotary Department co-operated fully with
the introduction of the new system, and will continue
operating the new technology.
COMPANY'S ARGUMENTS:
4. 1. The claim for an increase of 6.13% on productivity rates
is based on LCR 11193 which dealt with the introduction of
photo composition in the case room. The introduction of photo
composition resulted in substantial staff reductions and
significant changes in work practices for Union members in the
case room. By comparison there are no staff reductions in the
Rotary Department and the change to plastic plates is minimal.
LCR 11193 specifically stated "the extension of 6.13%
supplementary photo composition payment to productivity rates
should be the subject of negotiation in the context of the
efficient use and productivity achieved from the photo
composition system". The Company contends that a comparable
position does not exist between the contribution of the Rotary
Department and the caseroom - accordingly the same basis for
payment is neither warranted nor justified. The Company has
offered 6.13% on basic pay for the rotary staff's co-operation
with plastic plates from 4th April, 1988. Within the context
of LCR 11193 the Company believes that the extension of the
6.13% to productivity rates should be on the basis of a
comprehensive agreement for more efficient methods of
operation in the Rotary Department. The cost of conceding
6.13% on productivity rates is #19,898 per annum. In addition
negotiations are also in progress with another Union on behalf
of 45 rotary assistants and in that context the total cost to
the Company would be #69,806 per annum. It should be noted
that all staff are paid productivity rates and the basic trade
rates is used only for the purpose of calculating percentage
wage increases and the night differential. The Company's
offer of 6.13% calculated on basic rates would give increases
of:-
- # 9.15 per week for day staff
- #12.20 " " " nights staff
and would bring the current rates of pay to
- #329,79 per week for day staff
- #382,58 " " " night staff.
2. Since 1981 the Company has been clearly communicating
the changing circumstances and nature of its business to all
Union representatives and employees. The realities of a
radically changed environment demand a more competitive
framework if the Company is to survive. The company has
offered 6.13% on basic rates from April, 1988, in return for
Union co-operation with plastic plates. The web width
reduction was a function of an engineering modification of
printing presses and does not impinge on the work practices of
rotary members. Previous web width reductions did not give
rise to any claims or additional payments. Within the
framework of LCR 11193 the extension of the 6.13% to
productivity rates should be in the context of the more
efficient methods proposed by the Company. Other groups
within the Company have given significant staff and cost
reductions in return for a payment of 6.13% on productivity
rates within the context of comprehensive agreements on its
first phase restructuring programme. Concession of this claim
would increase costs, and change the Company's requirement for
more cost competitive structures.
RECOMMENDATION:
5. Having regard to the present position of negotiations in
relation to a comprehensive agreement with the Rotary Department,
the Court is of the opinion that pending the conclusion of such an
agreement, the Company's offer of 6.13% on basic rates is
reasonable and should be accepted.
The Court so recommends.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
17th November, 1988 --------------------
T.O'D/U.S. Deputy Chairman