Labour Court Database __________________________________________________________________________________ File Number: CD88592 Case Number: LCR12045 Section / Act: S67 Parties: STAFFORD SHIPPING LTD. - and - IRISH TRANSPORT AND GENERAL WORKERS UNION |
Claims on behalf of four cranemen for - (1) an increase in the tonnage rate (2) inclusion of tonnage rates in the calculation of holiday pay.
Recommendation:
9. The Court, having considered the submissions made by the
parties, recommends that the Company should offer and the Union
should accept a rate of 2.4 pence per ton; the tea money of #40
to continue to be paid. This Agreement which is inclusive of the
provisions of the National Plan to be effective from 1st February,
1988. No special claims for increases in the tonnage rate will be
submitted for a period of five years from the date of this
Agreement but the rate will attract any general pay increases in
the last two years of this Agreement.
The Court also recommends that holiday pay should be calculated by
reference to both basic and bonus payments for a normal working
week and that the sum of #500 be paid to each of the claimants in
full and final settlement of their claim for arrears of holiday
pay.
Division: Mr Fitzgerald Mr Shiel Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD88592 RECOMMENDATION NO. LCR12045
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: STAFFORD SHIPPING LTD.
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claims on behalf of four cranemen for -
(1) an increase in the tonnage rate
(2) inclusion of tonnage rates in the calculation of
holiday pay.
BACKGROUND:
2. An Agreement between the Company and the Union providing for
payment of a tonnage bonus to cranemen operated from 1979 to the
31st January, 1988, when the Union withdrew from the Agreement.
The parties have been involved in discussions on a replacement
agreement involving tonnage rates and also on holiday pay, but as
no agreement was reached in these discussions the dispute was
referred to the Conciliation Service of the Labour Court on the
23rd May, 1988. A conciliation conference was held on the 20th
July, 1988, but no agreement was reached. The matter was referred
to the Labour Court for investigation and recommendation on the
26th July, 1988. A Court hearing took place in Waterford on the
14th September, 1988.
Claim (1) for an increase in the tonnage rate
3. The workers concerned are cranemen who in addition to their
basic pay receive a bonus payment of 1.68 pence per tonne.
Following the ending of the Agreement the parties entered into
discussion on a replacement agreement. These discussions resulted
in some progress being made on some clauses of the old Agreement.
The Company offered to increase the tonnage rate to 2.5 pence per
tonne, which would have been acceptable to the cranemen. However,
the Company wished to eliminate a payment of #40 per month which
was agreed in 1987 in settlement of a separate claim for a paid
tea break. This was unacceptable to the Union who subsequently
claimed 3 pence per tonne divided among the cranemen. The Company
was not agreeable to pay this rate.
UNION'S ARGUMENTS:
4. 1. In local negotiations the Union on behalf of the cranemen
agreed that the Company would be entitled to change from a
crane operation grabbing cement to a suction or other method
of discharge without payment of any form of compensation.
While the Company's offer to increase the tonnage rate to 2.5
pence per tonne was acceptable to the Union it was not
possible to accept the Company's decision to clawback a
special payment of #40 per month to cranemen agreed in 1987.
The Union claim for 3 pence per tonne divided among the
cranemen is intended to reflect the value of the cranemen's
contribution to the efficiency and success of the operation.
A crucial element in the operation of a port is the speed
with which cargoes are loaded/unloaded. Delays not only mean
extra changes but also mean that berths are not freed for
other arrivals. The Company acknowledges that it receives a
very high degree of co-operation from the cranemen, among
others, in ensuring a very efficient rate of turnover for
vessels using the port, but is unwilling to share the
financial benefits with those who make it possible.
2. The flexibility provided by the cranemen is illustrated
as follows -
(a) The cranes operate from 7.00 a.m. and work through tea
breaks, dinner break and evening meal breaks as
required. Cranemen are expected to work until 10.00
p.m. and often they will continue working until 11.00
p.m., to finish a boat. Cranemen not only tie in their
annual leave arrangements with the requirements of the
Company but they have also co-operated with the Company
by returning to work during their holidays when asked.
(b) Apart from operating the cranes the cranemen also drive
lorries and forklifts as well as maintaining the cranes.
They receive no extra payment for these functions. Not
only do cranemen work long unsociable hours but during
these hours they operate at very high levels of
performance in cramped, cold and uncomfortable
conditions.
3. The Union is willing to accept the Company offer of 2.5
pence per tonne divided among the cranemen for a period of
three years but excluding the clawback of the #40 per month
special payment.
COMPANY'S ARGUMENTS:
5. 1. The original claim was for 3 pence per tonne. The
Company made an offer of 2 pence per ton to operate for a
three year period and to be inclusive of increases under the
National Agreement. The Union then revised its claim to 2.5
pence per ton. The Company made an offer of 2.5 pence to
include an existing payment of #40 per month per man yielding
approximately 2.2 pence on tonnage bonus. Concession of the
claim would bring the average weekly bonus per man from #48
to #72. The development of the cranemen's tonnage bonus
since the original agreement in 1979 has been to increase
from an average of #7.90 weekly on 355,000 tons in 1979 to an
average of #48.10 on tonnage of 600,000 in 1987. The bonus
has advanced by a factor of 6.09 over the period. In the
same period the basic rate has advanced from #70.09 to
#179.68 (per National Agreement), a factor of 2.56. It is
clear from the above that the bonus has increased very
substantially over the years. Average per annum earnings for
cranemen are in the order of #16,000, #17,000.
2. The Company would argue that earnings from the bonus
scheme as currently operated are substantial. The Company's
effective offer of 2.2 pence represents an increase of 31% on
the current rate. Assuming that tonnage levels remain stable
this will yield an average increase of #15 per week, bringing
the weekly bonus earnings from approximately #48 to #63. The
Company regards this as a fair and reasonable offer. The
success of the Company's operations in the coming years will
depend on its being able to discharge for customers at
competitive rates, hence the importance of keeping all cost
increases, including labour costs, at sustainable levels.
Claim (2) Inclusion of tonnage rates in the calculation of holiday
pay
BACKGROUND:
6. The Union claims that when the Company calculated cranemen's '
holiday pay, earnings under the tonnage bonus were not included.
This was in contravention of the Holidays (Employees) Act 1973.
The Company stated, that it operated in accordance with the Act
and rejected the Unions claim.
UNION'S ARGUMENTS:
7. 1. The Holidays (Employees) Act, 1973 provides for the
calculation of holiday pay as follows -
(a) Where payment is calculated wholly by a time rate or at
a fixed rate or salary, or where payment does not vary
in relation to the work done - the sum (including any
regular bonus or allowance which does not vary in
relation to work done but excluding pay for overtime),
payable in respect of normal working hours in the
working week next before annual leave.
(b) In any other case - a sum equivalent to the average
weekly earnings (excluding pay for overtime) for normal
hours, calculated by reference to the earnings in
respect of the time actually worked, during the 13 weeks
immediately preceding the annual leave or otherwise the
13 weeks ending on the day on which time was last
worked.
2. The Company accepted that bonus earned in normal working
hours (excluding overtime) should be reckoned for holiday pay
but agreement was not reached in relation to the payment of
arrears due to the cranemen. When the Union raised the
question of the arrears at the conciliation conference in
July, 1988, the Company changed its mind on the main issue,
claiming that the cranemen were already in receipt of tonnage
during holidays.
3. The tonnage payment which is received by a cranemen on
holidays represents a four part share out of the tonnage
bonus earned by the three cranemen who continue working. The
Company does not pay any extra amount of tonnage bonus as
required by law. The mutual agreement between the cranemen
on the share out of the bonus does not relieve the Company of
its obligations. A craneman earning #30 per week tonnage
bonus which is based on a shareout of actual tonnage handled
by the four cranemen during normal hours, his holiday pay
should include #30 per week exclusive of any contribution he
receives from the tonnage handled by his colleagues. Take an
example of four cranemen working together who handle 600,000
tonnes in the year, they earn 1.68 pence per tonne, a total
of #10,080 per year, giving each craneman #2520 per annum or
#52.50 per week for each of their 48 working weeks. They are
therefore entitled to #52.50 for each of their four weeks
annual leave or a total of #840 between the four, giving a
total of #10,920. Currently the Company divides the #10,080
over the 52 weeks of the year, thereby avoiding their holiday
pay obligation of #840.
COMPANY'S ARGUMENTS:
8. 1. The operation of the cranemen's tonnage bonus is such
that the total sum yielded is divided between the four
cranemen every week. This is the case regardless of whether
a craneman is on annual leave or sick leave. The Union has
claimed that the tonnage bonus should be taken into account
in the calculation of holiday pay. The Company accepts that
if there is such a legal entitlement a proportion of the
bonus would be paid, calculated by reference to basic hourly
pay, as a percentage of total hourly pay.
RECOMMENDATION:
9. The Court, having considered the submissions made by the
parties, recommends that the Company should offer and the Union
should accept a rate of 2.4 pence per ton; the tea money of #40
to continue to be paid. This Agreement which is inclusive of the
provisions of the National Plan to be effective from 1st February,
1988. No special claims for increases in the tonnage rate will be
submitted for a period of five years from the date of this
Agreement but the rate will attract any general pay increases in
the last two years of this Agreement.
The Court also recommends that holiday pay should be calculated by
reference to both basic and bonus payments for a normal working
week and that the sum of #500 be paid to each of the claimants in
full and final settlement of their claim for arrears of holiday
pay.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
__________________________
4th October, 1988.
T.O'D./P.W. Deputy Chairman