Labour Court Database __________________________________________________________________________________ File Number: CD89112 Case Number: LCR12302 Section / Act: S67 Parties: CENTRAL BANK OF IRELAND - and - MANUFACTURING SCIENCE AND FINANCE |
Mechanisation of the note processing area.
Recommendation:
13. The Court having examined the final proposal of the Bank and
noting in particular that all of the claimants will receive
increases of at least 12% recommends that the proposals be
accepted as the basis for the introduction of the new machinery.
Having seen the operation of the new equipment it is clear to the
Court that there is more involved in the changeover than simply
the substitution of mechanised for manual counting. The
conversion also entails a reallocation of accountability and
responsibility for the handling of cash. The Court notes that
there are many different ways in which the new procedures could be
operated and that these have not yet been decided upon. There is
a great deal yet to be worked out between the staff and the
management. In particular it will be necessary to decide and
agree who is to be accountable for cash under the new system of
working. It is essential that these matters be decided upon and
agreed before the system is fully operational but this can only be
done after the staff, the supervisors and the management have had
some experience in operating the new equipment and associated
procedures.
The Court therefore recommends that the staff give their full
co-operation in the running of the new equipment and that a system
of working should be established and agreed as soon as possible.
When it is agreed there should be a further increase of 2% on all
points of the salary scales in addition to the offer already made
by the Bank.
The Court notes with regret that this issue was not referred to
the Court for investigation and recommendation before industrial
action was taken as, in the Court's view, the matter was capable
of peaceful resolution.
Division: CHAIRMAN Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD89112 RECOMMENDATION NO. LCR12302
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: CENTRAL BANK OF IRELAND
and
MANUFACTURING SCIENCE AND FINANCE
SUBJECT:
1. Mechanisation of the note processing area.
BACKGROUND:
2. The work involved in re-calling and sorting used bank notes
for disposal is at present performed manually by currency
checkers. The Bank intends to mechanise this work with a view to
improving the quality of bank notes in circulation.
3. There are 59 currency checkers and 10 supervisors employed.
The currency checkers work in groups counting and sorting soiled
notes under the control of a supervisor. Two of these groups are
"security groups", with particular duties such as processing
higher denomination notes and discrepancies. Staff working in
these groups have a 7.5% differential over other currency
checkers. Some supervisors and checkers receive the 7.5% on a
permanent basis while a number of others receive it for six months
of the year (i.e. 3.75%).
4. It is the Bank's intention to shed approximately 30 currency
checker jobs through voluntary early retirement, leaving about 29
checkers in the proposed new mechanised environment.
5. The matter of the proposed mechanisation was referred to the
conciliation service of the Labour Court on 26th May, 1988 and
conciliation conferences were held on 27th and 30th May. On 31st
May, the Bank put a formal offer to the Union (copy at Appendix
A). This offer was rejected by the workers.
6. On 13th September, 1988 the Union submitted a number of claims
concerning annual leave, salary levels, staffing levels and the
security panel. The Bank responded on 22nd September stating that
these issues had formed part of the negotiations on mechanisation
and that the Bank had expected to resolve them with its offer of
31st May. It further stated that the Labour Court had been asked
to investigate the matter. The Union, by letter dated 27th
September, 1988 protested at this response. It stated that it had
"no alternative but to reserve its position on the processing of
items under the (Disputes) Procedure".
The Disputes Procedure provides for reference of disputes to the
Labour Court. The Union subsequently stated that this letter
constituted withdrawal from the Disputes Procedure and thus there
was later no basis for reference of the matter of mechanisation to
the Labour Court.
7. Three further Labour Court conciliation conferences took place
on 8th, 15th and 17th November, 1988. The Industrial Relations
Officer put a set of proposals to the parties dated 22nd November,
1988 (copy at Appendix B). These proposals were also rejected by
the workers. Further conciliation meetings took place on 9th and
10th January, 1989 at the conclusion of which the Bank put a
further offer to the Union (Appendix C). This offer was put
forward on the basis that if it was rejected and if the Union was
not prepared to refer the issue to a full Court hearing,
suspension would result if employees refused to commence training
on the new system. The workers rejected the proposals in a secret
ballot.
8. The Bank sought to commence training on 16th January, 1989 and
following the refusal by the workers to co-operate, twelve
suspensions took place. Pickets were placed on the premises on
17th January. The Industrial Relations Officer invited the
parties to a further conciliation conference which was held on
25th January. This meeting explored various means of obtaining
agreement to a joint referral to the Court. Agreement could not
be reached on referral of the mechanisation issue and it was
agreed to refer the matter of the suspensions to a full Court
hearing. The hearing took place on 31st January, 1989. On the
same date, the Court issued its interim recommendation (LCR11253
copy at Appendix D).
9. The parties accepted this Recommendation and met locally on
3rd February 1989. Two further Labour Court conciliation
conferences took place on 7th and 9th February, 1989. Two
possible references to a resumed full Court hearing emerged, based
on a document dated 9th February, 1989 (copy at Appendix E).
These were:-
(1) that the parties would refer paragraphs (a) (b) (d) (e)
and (h) for a full Court hearing
or
(2) that the parties would refer all issues for a full
Labour Court hearing and recommendation.
If the reference was on the basis of (2) then the
document of 9th February, 1989 would be withdrawn and
the Bank's position would be as set out in its letter
of 10th January, 1989.
10. Following a general meeting held on 10th February, 1989, the
Union opted to refer the issue of compensation for new technology
to a full Court hearing (items (a), (b), (d) (e) and (h) of the
document of 9th February, 1989). The Court hearing took place on
15th February, 1989. The Court visited the note processing area
on the same date.
UNION'S ARGUMENTS:
11. 1. The Union made comprehensive written and oral
submissions to the Court, the main points of which were as set
out below.
Overall percentage increase and increments:
2. The Bank will gain substantially from the introduction
of mechanisation and the costs will be minimal (see 5 below).
Management has indicated that it considers the 12% offer to be
very generous. The Union does not see this to be the case and
points out that the pay scale is very low. Full details were
supplied - #98.29 to #150.90 (8 point scale) for currency
checkers; #173.06 to #200.96 (6 points) for supervisors;
#12,556 to #13,905 p.a. (4 points) for senior supervisors;
plus 7.5% differential in security area.
Thus the percentage increase on offer means a small increase
even in gross terms. The cost of the increase is only #28,000
per annum. The Union considers that additional increments
should be added to constitute a fair rate for the job. Given
the benefits accruing to the Bank and the complete change in
work procedures, the Union considers that a combination of a
percentage increase and additional increments amounting to 20%
overall, would be reasonable.
Differentials:
3. The question of differentials is fundamental to the resolution
of the mechanisation issue. The Union does not accept that
the 12% increase offered is in fact 12%, since the Bank, when
mechanisation takes place, will expect all currency staff to
perform work for which there exists a 7.5% differential at
present.
The real increase, therefore, for staff not receiving any
differential at present is 12% less 7.5% i.e. 4.5%. The Union
is seeking a 12% increase plus full extension of the
differential for security work to all the staff.
(Note: This issue was discussed in detail at the hearing).
Lump sum:
4. The Union considers the lump sum offer to be acceptable.
Costs and Cost Savings:
5. The Bank has produced some figures on the costs involved
in the various options considered. These figures include the
actual cost savings achieved by the thirty proposed
redundancies (#210,000 per annum on salaries alone, plus
loans, pensions etc). They do not take account of
depreciation of machinery. Thus, the Union considers that the
true cost of mechanisation to the Bank will be minimal.
BANK'S ARGUMENTS:
12. 1. The Bank made comprehensive written and oral
submissions, the main points of which are as set out below.
2. The decision to mechanise note-processing arose because
of increasing demand from the banks and the public for an
improvement in the standard of bank notes in circulation. The
machines which have been chosen will enable the Bank to count
significantly higher volumes of notes and fully sort receipts
note by note. This improvement can only be achieved by
mechanisation. This involes capital expenditure by the Bank
and also ongoing costs arising from the ongoing generous terms
of an early retirement scheme for surplus staff. The change,
which will involve greater rather than lesser cost is not
amenable to any commercial cost-benefit analysis but is
expected to result in an unquantifiable improvement in the
quality of notes in circulation. For this reason the Bank
could not base any pay offer on aspects of costs, output, etc.
The offered increases are intended to compensate currency
checkers for a change in the nature of their duties.
3. The staff requirement will be reduced by the voluntary
early retirement of about 30 currency staff, leaving 29
checkers. Arising from the negotiations, the Bank has agreed
that at least 2 Supervisors may also take early retirement and
to replace them by promotions.
The assignment of staff under the new system would be as
follows:
(A) Machine operations - 8 Currency Checkers - one
person working on each of
eight machines.
(B) Preparation of bundles - 6 Currency Checkers
for machines, processing
of notes off machines and
processing of discrepancies.
(C) "Security" Work - 15 Currency Checkers.
Although the technology is advanced, its operation is
relativity simple. It is the Bank's understanding that an
operator can achieve basic competence in one day and would be
considered fully competent in about 2 weeks. The work of the
6 'backup' checkers will in fact be less demanding than their
present duties, as it will not require the concentration and
accuracy of handcounting bundles. The "security" work will
continue to be done on a manual basis and will be
substantially the same as before with some procedural changes
where their work interconnects with the mechanised processing.
4. It is against this background that the Bank developed its
approach to the actual wage negotiations. Effectively only 8
machine operators at any time will have to carry out
completely new duties. It would have been an option for the
Bank to offer the additional payment to the machine operators
only. However, there seemed to be more merit in providing for
full interchangeability between all of the staff, to give the
Bank more flexibility and to provide greater work variety for
the checkers themselves.
5. The Bank's current position is set out in the 9th February
document, and, in summary, offers:-
a two phased pay increase of 12%,
a lump-sum of #1,000
and a promotional scale of Senior Currency Checker
(which is not essential in work terms).
6. Under the Bank's offer each checker and supervisor will get an
increase of at least 12%. Staff currently earning 7.5% above
the basic will retain the advantage on a red-circle basis
while those currently 3.75% above basic will be absorbed on
the new senior scale giving them a 5% premium. Machine work
and security work will be treated as of equal value. The new
senior grade was conceded during negotiations and is intended
as a merit grade which will not be confined to any particular
segment of the work.
7. The Bank is conscious that, in the present climate,
technological changes are often introduced without any
increase in pay levels and recompense, if any, has been
confined to lump-sum payments in many cases. Given the
relatively small change in duties of the currency checking
staff, the present offer is generous and the Bank considers
that it should be accepted in full and final settlement of the
mechanisation issue.
RECOMMENDATION:
13. The Court having examined the final proposal of the Bank and
noting in particular that all of the claimants will receive
increases of at least 12% recommends that the proposals be
accepted as the basis for the introduction of the new machinery.
Having seen the operation of the new equipment it is clear to the
Court that there is more involved in the changeover than simply
the substitution of mechanised for manual counting. The
conversion also entails a reallocation of accountability and
responsibility for the handling of cash. The Court notes that
there are many different ways in which the new procedures could be
operated and that these have not yet been decided upon. There is
a great deal yet to be worked out between the staff and the
management. In particular it will be necessary to decide and
agree who is to be accountable for cash under the new system of
working. It is essential that these matters be decided upon and
agreed before the system is fully operational but this can only be
done after the staff, the supervisors and the management have had
some experience in operating the new equipment and associated
procedures.
The Court therefore recommends that the staff give their full
co-operation in the running of the new equipment and that a system
of working should be established and agreed as soon as possible.
When it is agreed there should be a further increase of 2% on all
points of the salary scales in addition to the offer already made
by the Bank.
The Court notes with regret that this issue was not referred to
the Court for investigation and recommendation before industrial
action was taken as, in the Court's view, the matter was capable
of peaceful resolution.
~
Signed on behalf of the Labour Court
John M.Horgan
___________________
1st March, 1989. Chairman
A.K./U.S.
APPENDIX A
BANK'S OFFER OF 31ST MAY, 1988
(1) With effect from 1st September, 1988, the 7.50% differential
currently applying to those working in the Security area
will be extended permanently to all Currency
Supervisors/Checkers.
(2) On the same date, the following once-off payments will be
made to those who have been involved in the Security Area:
Supervisors (Permanent) #750
Supervisors (Panel) #375
Currency Checkers (Permanent) #500
Currency Checkers (Panel) #250
(3) An extra increment will be added to Currency
Supervisors'/Checkers' scales as and from 1st January,
1989. In addition all serving staff on that date will move
to the next higher point on the scale. (Details of scales
were attached to the offer).
(4) Annual Leave entitlements will be adjusted to bring all
Currency Supervisors up to 25 days, and Currency Checkers
up to 22 days, after 10 years service. (Details were
attached to the offer).
The above offer is entirely conditional on the staff's agreement
to:-
(5) Co-operate fully with the introduction and working of the
new mechanised system;
(6) Process "agency" work (i.e., Cash allocations for
commercial Banks);
(7) Rotate between their various duties at the discretion of
local management;
(8) Facilitate the maximum running of machinery during their
full working day (9.30 a.m. to 5.00 p.m.) and during their
already staggered lunch breaks.
APPENDIX B
INDUSTRIAL RELATIONS OFFICER'S PROPOSAL DATED 22ND NOVEMBER, 1988.
(a) the basic pay of currency checkers to be increased by 7.50%
with effect from 1st February, 1989.
(b) a further increase of 4.50% to apply with effect from 1st June,
1989.
(c) the questions of annual leave and productivity/relativity are
not covered by these proposals: they may be processed
separately by the union if it wishes but it should be noted
that the bank had indicated that it sees no merit in these
claims.
(d) the introduction of a new grade of senior currency checker
(which will be fully interchangeable with currency checker).
The maximum number of people in the new grade will be 10 and
their scale to be as follows:-
#115.95, #124.53, #133.17, #141.82, #150.41, #159.04, #168.45
#178.06
Note: This scale is inclusive of the 7.50% and 4.50% referred to in
paragraphs (a) and (b) above and it also assumes that the first
phase of Programme for National Recovery has been applied.
(e) Currency checkers who have a 7.50% differential at present and
who do not avail of the early retirement option to retain
this differential on a red circle basis and to be included as
part of the 10 senior currency checkers.
(f) Early Retirement - Currency Checkers:
The Bank to allow a minimum of 25 to avail of early
retirement on the basis of the scheme previously circulated.
The early retirements to take place by the end of January,
1989.
(g) Early Retirement - Supervisors and senior supervisors:
Two supervisors may avail of early retirement (details of
scheme to be circulated). If more than two apply it is for
the Bank to decide whose application is accepted. Senior
supervisors may also apply subject to the overall limit of
two. The early retirements to take place by end of January,
1989.
Supervisors who do not avail of early retirement and who have
differentials at present to retain these differentials on a
red circle basis.
Any supervisor vacancies arising as a result of the early
retirement scheme to be filled by internal appointment but
the consequential checker vacancies to remain unfilled.
(h) The bank to pay a lump sum of #200 to each staff member
remaining on the commencement of training on the new system.
(i) These proposals are made on the basis of:-
1. Full co-operation with the introduction and working of
the new mechanised system
2. Full co-operation with the processing of agency work
for the commercial banks.
3. Rotation between the various duties at the discretion
of the bank management.
4. Agreement to facilitate the maximum running of
machinery during the full working day (9.30 - 5.00) and
during the already staggered lunch breaks.
The above proposals have been made having regard to the normal
range of settlements of claims arising from the introduction of
new technology and also having regard to the fact that a dispute
seems highly likely.
APPENDIX C
BANK'S OFFER OF 10TH JANUARY, 1989
(a) The basic pay of Currency Checkers (other than those
availing of early retirement) to be increased by 8% with
effect from 1st February, 1989.
(b) A further increase of 4% to apply with effect from 1st June,
1989.
(c) The questions of annual leave and productivity/relativity
are not covered by these proposals: they may be processed
separately by the union if it wishes but it should be noted
that the Bank had indicated that it sees no merit in these
claims.
(d) The introduction of a new grade of Senior Currency Checker
(which will be fully interchangeable with Currency Checker).
The maximum number of people in the new grade will be 10 and
their scale to be as follows:-
#115.95 #124.53 #133.17 #141.82 #150.41 #159.04
#168.45 #178.00.
NOTE: This scale is inclusive of the 8% and 4% referred to in
paragraphs a) and b) above and it also includes the first
phase of Programme for National Recovery.
(e) Currency Checkers who have a 7.50% differential (full time) at
present and who do not avail of the early retirement option
to retain this differential on a red circle basis and to be
included as part of the 10 Senior Currency Checkers.
(f) Early Retirement - Currency Checkers:
The Bank to accept all applications for early retirement, on
the basis of the scheme previously circulated. Applications
should be made in writing to Head of Personnel by Tuesday,
17th January, 1989. The early retirements to take place by
end-February, next.
(g) Early Retirement - Supervisors and Senior Supervisors:
Two Supervisors may avail of early retirement (details of
scheme to be circulated). If more than two apply it is for
the Bank to decide whose application is accepted. Senior
Supervisors may also apply subject to the overall limit of
two. The early retirements to take place by end February,
1989.
Supervisors who do not avail of early retirement and who
have differentials at present to retain these differentials
on a red circle basis. The differential for the present 2
Supervisors on the part-time panel will be increased to 5%
on a red circle basis.
Any Supervisor vacancies arising as a result of the early
retirement scheme to be filled by internal appointment but
the consequential checker vacancies to remain unfilled.
(h) On commencement of training on the new system the Bank to
pay a lump sum of #1,000 (or 4 weeks pay, whichever is the
greater) to each staff member, other than those availing of
early retirement.
(i) These proposals are made on the basis of:-
1. Full co-operation with the introduction and working of
the new mechanised system.
2. Full co-operation with the processing of agency work
for the commercial banks.
3. Rotation between the various duties at the discretion
of the Bank management.
4. Agreement to facilitate the maximum running of
machinery during the full working day (9.30 - 5.00) and
during the already staggered lunch breaks.
I confirm that this offer is made with a view to full settlement
of our negotiations and on the understanding that your negotiating
committee will recommend its acceptance.
APPENDIX D
THE COURT'S INTERIM RECOMMENDATION
CD8959 RECOMMENDATION NO. LCR12253
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES CENTRAL BANK OF IRELAND
and
MANUFACTURING SCIENCE AND FINANCE
SUBJECT
1. The suspension of twelve workers.
BACKGROUND
2. This issue was discussed at a Labour Court conciliation
conference held on 25th January, 1989. It was referred on 27th
January to a full Court hearing. The hearing took place on 31st
January. The following is the Court's recommendation:-
RECOMMENDATION
3. The Court recommends that on acceptance of this recommendation
the suspensions be lifted and that normal work resume.
Negotiations should recommence immediately on the issues in
dispute and if agreement is not reached by Friday 10th February,
both parties should agree to refer the substantive issues to the
Court for investigation and recommendation. The Court will hear
the case at an early date in the following week.
Signed on behalf of the Labour Court
John M Horgan
31st January, 1989 -------------
A.K./U.S. Chairman
APPENDIX E
DOCUMENT OF 9TH FEBRUARY, 1989
CENTRAL BANK MECHANISATION ISSUE
(a) The basic pay of Currency Checkers (other than those
availing of early retirement) to be increased by 8% with
effect from the commencement date of training.
(b) A further increase of 4% to apply with effect from four
months later.
(c) The questions of annual leave and productivity/relativity
are not covered by these proposals. It is noted that the
union intends to submit a productivity/relativity claim at
a later date, which will be processed fully in accordance
with the agreed disputes procedure.
(d) The introduction of a new grade of Senior Currency Checker
(which will be fully interchangeable with Currency
Checker). The maximum number of people in the new grade
will be 10 and their scale to be as follows:-
#150.41 #159.04 #168.45 #178.08
Note: This scale is inclusive of the 8% and 4% referred to in
paragraphs (a) and (b) above and it also includes the first
phase of the Programme for National Recovery.
(e) Currency Checkers who have a 7.50% differential (full time)
at present and who do not avail of the early retirement
option to retain this differential on a red circle basis
and to be included as part of the 10 Senior Currency
Checkers. Those who have a 3.75% differential above their
basic rate at present will enter the senior scale at a
point to give them 5% above their basic rate.
(f) Early Retirement - Currency Checkers:
The bank to accept all applications for early retirement,
on the basis of the scheme previously circulated.
Applications should be made in writing to Head of Personnel
within one week of acceptance. The early retirements to
take effect within six weeks of acceptance.
(g) Early Retirement - Supervisors and Senior Supervisors:
The Bank will consider all applications for early
retirement from Supervisors and Senior Supervisors subject
to the terms of the scheme previously circulated. The Bank
will approve at least two applications. Depending on the
number of applications for early retirement from
Supervisors/Senior Supervisors and Currency Checkers
approval may be given to further supervisory retirements.
Supervisors who do not avail of early retirement and who
have differentials at present to retain these differentials
on a red circle basis. The differential for the present 2
supervisors on the part-time panel will be increased to 5%
on a red circle basis.
Any supervisor vacancies arising as a result of the early
retirement scheme to be filled by internal appointment but
the consequential checker vacancies to remain unfilled.
(h) On commencement of training on the new system the Bank to
pay a lump sum of #1,000 (or 4 weeks pay, whichever is the
greater) to each staff member, other than those availing of
early retirement.
(i) These proposals are made on the basis of:-
1. Full co-operation with the introduction and working
of a new mechanised system including the facilitation
of the maximum running of machinery during the full
working day and during the already staggered lunch
breaks (i.e. no change in working hours).
2. Rotation between the various duties at the discretion
of the Bank management.
9th February, 1989