Labour Court Database __________________________________________________________________________________ File Number: CD88625 Case Number: LCR12090 Section / Act: S67 Parties: KERRY FOODS LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claims by the Union for: (a) Fixed starting and finishing times for hourly paid bacon workers. (b) Increased shift premia for permanent night loaders.
Recommendation:
Starting Times/Bacon Delivery
7. The Court, having regard to the necessity to make deliveries
to suit customers requirements, does not consider the introduction
of fixed starting and finishing times to be feasible, and does not
therefore recommend concession of the Union's claim.
Pay of Night Loaders
In view of the fact that the workers concerned are involved in
continuous night work the Court recommends that the rate for the
job be increased to #157.50.
Division: Mr O'Connell Mr Shiel Mr O'Murchu
Text of Document__________________________________________________________________
CD88625 RECOMMENDATION NO. LCR12090
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: KERRY FOODS LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claims by the Union for:
(a) Fixed starting and finishing times for hourly paid bacon
workers.
(b) Increased shift premia for permanent night loaders.
BACKGROUND:
2. This dispute concerns two groups of workers employed in the
Dublin depot of Kerry Foods Ltd, which was formerly the Dublin
depot of Denny's Ltd before the latter was taken over by the Kerry
Co-Op Group. Claim A concerns four workers who load and deliver
bacon in the greater Dublin area and whose starting and finishing
times are flexible. The Union on behalf of the workers, claimed a
fixed starting and finishing time on an eight hour day five days a
week basis, with agreed rates of overtime for all hours worked
before and after normal working hours. The Company would not
concede the claim on the grounds that the workers were employed on
the understanding that their hours would be flexible and that the
workers are already earning very good wages.
Claim B involves a group of night loaders who work a staggered 40
hour week over four nights. The Union claims that the workers
rate of pay includes a shift premium of 17.50% and that the standard
shift rate for permanent nights is 33 1/3%. The Company denied
that any shift pay applied, and claimed that the wages paid were a
rate agreed at recruitment. Agreement could not be reached at
local level, and on 31st March, 1988, the matter was referred to
the conciliation service of the Labour Court. A conciliation
conference took place on 8th June, 1988. No agreement was reached
and on 9th August, 1988, the matter was referred to the Labour
Court for investigation and recommendation. A Court hearing took
place in Dublin on 22nd September, 1988.
CLAIM A Claim by the Union for fixed starting and finishing
times for hourly paid bacon workers.
UNION'S ARGUMENTS:
3. 1. In 1982, after the takeover of Denny's by Kerry Co-Op, the
bacon workers were made redundant and the Company discontinued
the delivery of bacon from the Dublin depot. In the last
twelve months, the Company has reintroduced bacon deliveries
from the Dublin depot, but has drastically changed the
conditions of employment of the new employees. Originally the
bacon workers in the depot worked from 8.00 a.m. to 5.00 p.m.
with overtime rates paid for work done before and after normal
finishing time.
2. The four workers now employed in the section have no fixed
starting or finishing times. They may have to start work at
anytime between 6.00 a.m. and 9.00 a.m. Monday to Friday to
suit the Company's needs, without any compensation for the
upset to the workers home life or the inconvenience caused in
getting to work before public transport is available. The
workers are denied the overtime rates for starting before
normal time, which is well established at double time. Nor do
the workers receive overtime for working after normal
finishing hours until forty hours have been clocked up.
3. The Union knows of no other company in the food, drink and
tobacco trades which operates this system of a variable
starting time without compensating the workers by either a
shift allowance or over-time payments.
4. The Company has compounded the situation by attempting to
send the workers home at 2.00 p.m. or 3.00 p.m. in order to
avoid the build-up of hours above forty, when overtime rates
come into operation. There is a well established norm of a
five day, forty hour working week with agreed starting and
finishing times, and agreed overtime rates for working before
and after these times. The Union urges the Court to recommend
accordingly.
COMPANY'S ARGUMENTS:
4. 1. The workers concerned were employed under agreed terms and
conditions. These terms and conditions were drawn up to
include flexible starting times so that the Company could meet
customer demands and remain reasonably competitive at the same
time.
2. The workers presently enjoy very high overtime earnings in
addition to their basic wages each week (details supplied to
the Court). It should be noted that the rate of pay is
presently subject to negotiations, and any agreed new figure
will be back dated to January, 1988.
3. The Union are trying to ensure that overtime earnings
which are already very high, will increase. This is
irresponsible. Were the Company to concede the claim, the
jobs of the workers would be at risk. The Company is not in
the position to concede any cost increasing claims.
4. The jobs were crated in a very competitive environment and
if they are to be maintained labour costs which are already
very high must not be increased further. It is imperative
that the customers demands be met without becoming
uncompetitive.
5. The workers concerned work side by side with van sales
drivers, who work very long hours and who do not enjoy any
overtime rates. Their starting and finishing times vary also
and they effectively work hours which suit their customers.
The bacon drivers are operating in the same market and whereas
they are not salesmen, their livelihood and that of the
Company is dependent on their flexibility. The Company are
satisfied that the workers concerned are well rewarded for the
work they carry out, and their overtime levels are constant,
and very reasonable. The Company requests the Court to reject
the claim.
CLAIM B Increased shift premia for permanent night loaders
UNION'S ARGUMENTS:
5. 1. The Union was not consulted regarding rates of pay or
conditions of employment when this shift was started. When
the Union raised the issue of shift premia for the workers, it
was told that it was included in the consolidated rate being
paid to loaders. When the Union pressed for a breakdown, it
was told that the wages were made up of a basic rate plus a
17% shift allowance. The basic rate of pay is referred to by
the Company as the Duffy's rate of pay which applys in Duffy's
of Hacketstown, another Company owned by the Kerry Group.
However, the basic pay of the bacon workers referred to in the
previous claim is eleven pounds per week more. It is very
confusing for everyone concerned to have groups of workers
employed in the same premises by the same Company, on totally
different rates of basic pay for no good reason.
2. The principle of shift premia for rotating shift or
permanent night shift working is well established in industry
generally. The unsocial hours plus the physical and mental
stress caused by continuous night work is well recorded, and
the effect on workers general health and well being are
accepted as being seriously detrimental. Family life also
suffers because of the strains imposed by the unnatural life
style of night workers, and it has been proven that it can
lead to broken marriages.
3. Having regard to all the pressures and difficulties caused
by continuous night work, the Union believes that the present
shift allowance of 17% is grossly unfair. The norm which is
being established throughout Irish Industry is 33 1/3%
(details supplied to the Court). The Court itself recommended
this rate in Labour Court Recommendation 3896. In all the
circumstances the Union considers its claim to be well
justified and asks the Court to recommend accordingly.
COMPANY'S ARGUMENTS:
6. 1. The hours of work for this position and the rates of pay
were fully agreed with the workers concerned, all of whom are
relatively new employees of the Company.
2. These jobs are the best paid of their kind within the
Kerry Group. The work also involves shorter hours than
similar posts in the Group. It would be totally inappropriate
to bring them further out of line with lower paid personnel
doing the same type of work in Kerry Foods.
3. Kerry Foods are operating in an extremely competitive
environment, and are not in a position to consider any cost
increasing claims. It should be noted that the rate of pay is
presently subject to wage negotiations and any rate agreed
during these negotiations will be back dated to January, 1988.
4. The Union have argued that they were not directly involved
in negotiating the rate for the people concerned, and are not
happy with the rate. The Union was not involved in agreeing
the rates paid to more than 90% of the employees of Kerry
Foods. The Company are seriously concerned that the Union
should now seek to negotiate rates partly on the basis that
they were not involved in the initial discussions on such
rates.
5. The work carried out by the workers is not of a skilled
nature and the rate was struck by the Company taking full
cognisance of the type of work involved and the time at which
it was carried out.
6. In all the circumstances the Company are satisfied that
the rate is both competitive and reasonable, and it looks
forward to a favourable recommendation from the Court.
RECOMMENDATION:
Starting Times/Bacon Delivery
7. The Court, having regard to the necessity to make deliveries
to suit customers requirements, does not consider the introduction
of fixed starting and finishing times to be feasible, and does not
therefore recommend concession of the Union's claim.
Pay of Night Loaders
In view of the fact that the workers concerned are involved in
continuous night work the Court recommends that the rate for the
job be increased to #157.50.
~
Signed on behalf of the Labour Court
John O'Connell
____________________________
25th October, 1988 Deputy Chairman
P.F./J.C.