Labour Court Database __________________________________________________________________________________ File Number: CD88872 Case Number: LCR12239 Section / Act: S67 Parties: IRISH STEEL - and - IRISH STEEL LIMITED;IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION |
Claim on behalf of 22 non-craft foremen for the consolidation of bonus payment into basic pay.
Recommendation:
9. Having regard to all of the circumstances related to the
claim, the Court recommends that the full interim bonus of #20 be
consolidated into the salaries of the 6 non-craft foremen in
steelmaking and the standard bonus now paid be consolidated for
the other non craft foremen.
Division: Ms Owens Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD88872 RECOMMENDATION NO. LCR12239
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: IRISH STEEL LIMITED
and
IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION
SUBJECT:
1. Claim on behalf of 22 non-craft foremen for the consolidation
of bonus payment into basic pay.
BACKGROUND:
2. Until 1981 non-craft foremen had a bonus which was related to
tonnage produced with guaranteed minimum payments. In practice,
bonus payments in excess of the minimum payment were achieved.
3. When new machinery was introduced in 1981 which increased
output agreement could not be reached on bonus payments
arrangements. Thus, from 1981, a standard bonus (based on
pre-1981 operation) continued to exist on paper, but in fact the
interim bonus has been paid:
Standard Bonus Interim Bonus Numbers Involved
Melt shop #16 #20 6
Mill rollers #12 #12 4
Finishing #12 #12 4
Dispatch #12 #12 4
Dockside #10 #10 1
Galvanising #10 #10 1
(Bonus payments are included for pension purposes, but not for
overtime or shift premia).
4. Until 1985, wage settlements in Irish Steel were related to
average wage rates for similar grades of workers in a number of
industries in the Cork Harbour area through an analogue
arrangement and this relationship was reviewed annually. In the
case of the non-craft foremen a notional sum of #626 (#12 per
week) was deducted from the average rates of the survey to off-set
the bonus being paid.
5. Over the years various discussions had taken place on the
question of consolidation of the foremens bonus into basic rates.
It was agreed to consolidate bonus into basic in 1988 and the
Company offered to consolidate #12 per week into basic (equivalent
to the #626 already being deducted from salary). This offer was
subsequently amended to consolidate #626 or the standard bonus,
whichever was higher, with effect from 1st January, 1988. This
offer was rejected by the Union as it considered that the effect
of it would leave the 6 workers in the melt shop (steelmaking)
worse off as a result.
6. The matter was referred to the conciliation service of the
Labour Court on 15th June, 1988. A conciliation conference was
held on 21st July, 1988. As no progress was possible both parties
subsequently agreed to a referral to the Labour Court for
investigation and recommendation. A Court hearing was held in
Cork on 11th January, 1989.
UNION'S ARGUMENTS:
7. 1. The Company's proposal is discriminatory since, if
implemented, it would mean that 6 of the 20 foremen involved
would be treated less favourably than their colleagues, and
would in fact have their bonus reduced.
2. There has been a substantial increase in tonnage produced
since the introduction of the new plant; indeed, output
continues to increase - the 6 foremen against whom the Company
proposes to discriminate play a key role in maintaining and
increasing production. Nothing should be done which would
jeopardise existing good relations.
3. The interim bonus introduced in 1981 was never intended to
be anything other than interim. A number of foremen at the
time had been earning in excess of the interim bonus (as much
as #27 per week). By contrast, when bonus was consolidated in
the case of general workers in 1980, consolidation took place
on the basis of the average of the most favourable six months
in the previous year. More recently, when bonus was
consolidated into basic pay in the case of craft foremen in
summer 1987, the full amount of their bonus was consolidated.
COMPANY'S ARGUMENTS:
8. 1. Consolidation of the #16 standard bonus would, with 25%
for shift, and it is all shift in the steelmaking end result
in #20 being effectively consolidated. The Company can see no
justification in consolidating #20 which with shift would
become #25 and give an overnight increase of #5 which is
unwarranted.
2. The Company's offer would place all the foremen on the
same basic rate of pay as heretofore.
RECOMMENDATION:
9. Having regard to all of the circumstances related to the
claim, the Court recommends that the full interim bonus of #20 be
consolidated into the salaries of the 6 non-craft foremen in
steelmaking and the standard bonus now paid be consolidated for
the other non craft foremen.
~
Signed on behalf of the Labour Court
Evelyn Owens
_____________________
27th January, 1989 Deputy Chairman.
M.D./J.C.