Labour Court Database __________________________________________________________________________________ File Number: CD89878 Case Number: LCR12678 Section / Act: S67 Parties: ROSCREA FRESH FOODS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the alleged breach of a Plant Agreement.
Recommendation:
The recommendation in this case is too long for the Recommendation
Field of the Database. It is held in the Document Field.
Division: MrMcGrath Mr Brennan Mr Devine
Text of Document__________________________________________________________________
CD89878 RECOMMENDATION NO. LCR12678
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: ROSCREA FRESH FOODS LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the alleged breach of a Plant Agreement.
BACKGROUND:
2. The Company was formerly known as Roscrea Bacon Company. In
1987 it became a trading division of Avonmore PLC. Following the
take over the Company underwent a major nationalisation programme
which resulted in redundancies, changes in work practices an imput
in marketing and product development.
3. A comprehensive Draft Productivity Agreement was drawn up
between the parties following lengthy negotiations. The Agreement
was never signed because of a difference in interpretation of
clause 23.2 which deals with temporary workers. However although
the Agreement was never signed it has operated defacto since it
was drawn up in 1988.
4. In 1989 the Union alleged that the Company introduced changes
without prior negotiation and in some cases these changes were in
breach of certain clauses of the Agreement. In response the
Company argued that these changes were vital to its survival and
were brought about by external factors.
5. The issues were referred to the conciliation service of the
Labour Court in July, 1989. Conciliation conferences were held on
the 22nd and 28th November, 1989. As no agreement was reached the
parties consented to a referral to the Labour Court for
investigation and recommendation. The Court investigated the
dispute in Thurles on the 7th December, 1989. The Court issued
its recommendation by letter on 11th December, 1989.
UNION'S ARGUMENTS:
6. 1. The Company has introduced a 4th grade of worker (Grade
IV) initially on a rate of pay of #90 a week. This has since
been increased to #107 a week. This rate is #36.60 below
unskilled (Grade III) rate. This grade was introduced without
any prior negotiation with the Union. It is also in breach of
the well established 3 grade structure within the meat trade.
These workers were taken on as temporary but are now doing the
same work as higher paid workers. This is in breach of Clause
5.1. of the Agreement (which provides for 3 month probation
for new workers) as well as Clause 23 (part-time and temporary
employment). The Union is seeking that newly recruited grades
be treated as probationers and the Union is prepared to accept
that during their period of probation and training they be
paid #107 per week plus bonus.
2. Regarding the clerical workers the Company proposed to
place new clerical recruits on #90 a week (now #107 with no
guarantee of movement on to incremental scale). The
incremental scale ranges from #123.75 (recruitment point 1) to
#186.64 point 16. In addition there are 3 workers (details
supplied to the Court) who have been on point 1 for more than
2 years. The Company is also seeking to increase the clerical
working week from 35 to 37.50 hours a week and to abolish the
payment of the Christmas bonus. The Union is seeking that all
clerical workers be place on the incremental scale. Unlike
the factory workers the clericals are not in receipt of any
bonus payment. The Union objects to the worsening of clerical
working conditions by increasing the working week. Christmas
bonus of 2 weeks pay (nett) has been paid for over 30 years.
Initially it was introduced by lieu of overtime but since 1971
both overtime and Christmas bonus have been paid.
3. The Company is seeking to introduce a Tuesday/Saturday
working week contrary to Draft Agreement and without any prior
consultation. The Union is seeking a premium payment over
basic for Saturday work as is common in such cases in
industry.
4. The Company has introduced a 2 cycle shift contrary to the
Draft Agreement and without any discussion involving 3 men.
In a given wee two men work 8 to 5 and one man 1 p.m. to 9
p.m. The Company is paying shift of time plus one sixth for
evening shift and nothing on the other shifts. The Union is
seeking time plus one-sixth for two of the 3 week cycle.
5. A previous dispute over the buy-out of a Church Holiday
was settled on the basis of 1 days extra annual leave. The
Company want to grant this day at its own discretion. The
Union is seeking to have this day taken at Christmas.
6. When the Draft Agreement was negotiated the workers agreed
to drastic changes in work practices, redundancies, a wage
freeze followed by low wage increases. In return the Company
has received greater efficiency plus increased productivity.
The workers view the Company's proposals as a further erosion
of their conditions of employment.
COMPANY'S ARGUMENTS:
7. 1. The Irish Bacon Industry nationally has very many old
plants operating with restrictive practices. The Roscrea
Plant is over 80 years old and has survived because the
Company was in a position to inject substantial resources into
developing the adequate facilities survival was also achieved
because of the good will and excellent skill base of the
existing staff. In 1988/89 the market conditions in the Bacon
Industry worsened substantially and huge cost prices squeeze
began. In this period many competitors, both domestic and
foreign, reduced prices in an effort to squeeze out marginal
competitors. This Company was one such competitor. Its
survival was as a result of cost reduction measures and
efficiency methods put in place.
2. Subsequent events following on from discussions on the
Comprehensive Productivity Agreement made it necessary for the
Company to implement certain changes which the Union alleges
are in breach of the Agreement. The Company has reviewed the
alleged areas of breach and addressed itself to resolving the
issues.
3. One of the changes brought in by the Company was the
introduction of Grade IV in addition to the three grades
already in existence. This was necessary to ensure that the
Company did not bear a high level cost in bringing these
workers to the required level of skills in the various areas
of the factories. It is the Company's view that this grade
should operate on an indefinite basis. There are very real
commercial reasons why this is necessary namely an effort to
match costs with the Company's main competitors whose rates of
pay etc. are lower (details supplied to the Court).
4. The Company has sought to make changes in the office and
clerical areas as part of its ongoing commercial survival
plan. These arrangements include the regularisation of a
practice which grew up some years ago surrounding Christmas
bonus. This arose as an oversight and came to the attention
of current management in 1988. Management informed the staff
in January, 1989 that the Christmas bonus would no longer
apply. The Union maintained that this was in breach of the
Agreement as there was no prior consultation. It is the
Company's view that adequate notice has been given. However
the Company is prepared to review its position in the context
of two other clerical related issues. The first concerns the
extending of working hours in the office area from 35 hours to
37.50 hours per week. As there is almost continuous overtime in
this area the Company is seeking to have basic pay rates
applied up to 27.50 hours and overtime rates thereafter. The
second issue concerns Grade IV staff. Since June, 1989 new
recruits to the Office have been employed at Grade IV and the
Company proposes to increase their basic from #94 per week to
#107, per week.
5. The Company also proposes to introduce a shift pattern
which is not provided for in the Agreement and to change the
working week from Monday to Friday to Tuesday to Saturday.
This is necessary for reasons of hygiene. Specifically the
products involved are liver, kidney and heart all of which are
highly perishable. It is essential that these items be
chilled overnight and packed without delay so that their
condition will be of the highest standard.
6. On the question of Church Holidays Agreement has been
reached that they should be brought out by an additional days
annual leave. However there is disagreement as to when this
day should be taken. It is the Unions view that this day
should be taken during the Christmas shut down. Management
wish to reserve their right under the Holiday Employees Act,
1973 that it should be taken at Managements discretion.
*RECOMMENDATION:
3. The Court having considered the submissions both oral and
written of the parties makes the following recommendations as a
basis for a resolution of the present dispute.
1. Company Union Agreement
The Court recommends that Clause 5.1. be amended to read
as follows:
"The Company has full responsibility for recruitment of
employees from whatever source for temporary or full
time employment. Employees shall be recruited by the
Company on a temporary basis in the first instance for a
period of three (3) months. Employees being offered
permanent employment shall, subject to the satisfactory
completion of a probationary period of six months
following this period of temporary employment, be made
permanent and be subject to the normal grievance and
disciplinary procedures.
Regular appraisals shall be given to employees from the date
of commencement of employment.
Shop Stewards shall be kept advised of any shortcomings coming
to the notice of management. Within the above period of nine
months the Company may at its absolute discretion extend the
employees probationary period, or dismiss an employee
considered to be unsuitable.
In extending the probationary period or terminating the
employment of an employee on probation the Company shall have
consultation with the Union."
Clause 23.2 shall be amended to read as follows:-
"Casual lorry helpers where required will be recruited
from the existing workforce."
2. Tuesday to Saturday Working
The Court recommends that the employees concerned should be
paid on the basis of time plus 1/6 with a payment of an
additional #5.00 in respect of Saturday.
3. Rotational Shift 8 a.m. - 5 p.m. and 1 p.m. to 9 p.m..
The Court recommends that the shift premium should be
applied as follows:
3 workers rotating shift
Time + 1/6 to be paid 2 weeks out of 3; 4 workers
rotating shifts.
Time + 1/6 to be paid for each shift.
4. Leave in lieu of Church Holidays.
The Court recommends that the additional one days leave be
taken on the day following St. Stephen's day.
The Company and the Union to discuss and agree the practical
arrangements necessary for the implementation of this
recommendation.
5. Basic Grade (Grade 4)
The Court considers this grade should apply only to workers
recruited to the Company and should be applicable only to such
workers for a short period of time to enable their suitability
to be assessed and to enable them as indicated by the Company
to achieve the skills required in the various areas of the
factory at a reasonable cost.
Accordingly the Court recommends the grade should be
considered as a recruitment grade with employees progressing
to the other grades on the attainment of the necessary skills.
Employees should progress to another grade within a period of
not more than twelve months.
The Court notes the Company are committed to retaining the
staffing in the unskilled grade at 33%
Clerical (Grade 4)
The Court considers there are different circumstances applying
to the clerical staff and accordingly recommends that clerical
staff be employed on the current scale of pay and progress
through the scale in the normal way.
6. Other issues:
(a) The Court notes the following positions in respect of
other issues raised.
(1) Christmas Bonus - That the Company are arranging
payment of the Christmas Bonus.
(2) 37.50 Hour Week - That the introduction of the 37.50 hour
week is not being pursued at this time.
(3) Clerical Rates (3 named clerks) - That the Company
will examine the situation and resolve the matters.
(b) The Court does not recommend any concession in respect of
Mr Delaney.
RECOMMENDATION:
The recommendation in this case is too long for the Recommendation
Field of the Database. It is held in the Document Field.
~
Signed on behalf of the Labour Court
Tom McGrath
_________________________
11th December, 1989. Deputy Chairman
M.D./J.C.