Labour Court Database __________________________________________________________________________________ File Number: CD8963 Case Number: LCR12316 Section / Act: S67 Parties: ROADSTONE GROUP OF COMPANIES - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Proposed changes in overtime arrangements and the hours of cover provided by 75 clerical staff.
Recommendation:
7. Having considered the submissions made by the parties, the
Court is of the opinion that arising largely out of the experience
of the parties during the recent recession, too many extraneous
factors have intervened to allow an objective approach to
negotiations. Whilst of course the work force concerned are
entitled to seek re-assurances on their security of employment, on
the actual question at issue it seems to the Court that the most
likely hope of fruitful negotiations is if the workers concerned
compute the cash value of the loss involved in conceding the
employers claim and the employers in turn put a realistic price on
the concession they seek.
The Court recommends that the parties try the above approach in
their negotiations on the matter.
Division: Mr O'Connell Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD8963 RECOMMENDATION NO. LCR12316
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: ROADSTONE GROUP OF COMPANIES
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Proposed changes in overtime arrangements and the hours of
cover provided by 75 clerical staff.
BACKGROUND:
2. The Company is seeking to introduce flexibility of working
hours of clerical staff so that cover is provided from 8 a.m. to
5.30 p.m., without extra costs. Compensation for overtime within
those bands would be at flat time or time-off-in-lieu. The Union
rejects any change in the current situation as provided for in the
Comprehensive Productivity Agreement for Clericals (1984). This
agreement states:
Clause 14 Working Week
"The normal working week is 37.50 hours Monday to Friday, 9 a.m. to
5 p.m. less half hour meal break.
Flexi-time may be introduced by agreement where practicable...."
Clause 15 Overtime Payments
"Monday to Friday - First 4 hours continuous
overtime. Time plus one half.
Double time before 9a.m.
Saturday - First 4 hours, time plus one
half.
Double time thereafter.
Sunday - All time. Double time...."
3. In 1986 the Company sought a number of pre-conditions prior to
making any offer on pay to clerical staff under the 25th wage
round. One of these was that all overtime would be paid at flat
rates. The Labour Court in LCR10597 dated 27th June, 1986,
recommended "........ that the Companies and the group of staff
involved should commence immediate negotiations, using all
available information, to attempt to agree changes in conditions
which will reduce Companies costs to the degree necessary at the
present time ....."
The Court further stated that the Companies, in the context of
such negotiations, should concede salary adjustments similar to
those proposed for general workers. This Recommendation was
rejected by the Union and strike notice was served. Following a
Labour Court conciliation conference, the Group of Companies
issued a statement saying that it had been made clear by the Union
that there was no point in continuing negotiations since the Union
would not concede anything in relation to the changes sought. It
further stated that the Companies would pay the same increases as
had been paid to craft and general workers to avoid jeopardising
the future of the Companies and the future of the employees. Cost
reductions were to be achieved by whatever means were necessary.
The Companies terminated their Comprehensive House Agreement with
the ITGWU No 2 Branch on 3rd October, 1986.
4. The issue was not resolved and when the Union sought a 26th
round pay increase, the Company on 8th February, 1988 offered the
terms of the Programme for National Recovery from 1st January,
1988 on condition that the Union agree to negotiate changes which
would reduce costs, as per LCR10597. The matter was the subject
of a Labour Court hearing and on 28th June, 1988 the Court, in
LCR11924, stated:-
"Having considered the submissions made by the parties
and having regard to the terms of LCR10597, the Court
takes the view that increases such as those extended to
other groups of workers in the Company involved changes
in conditions which would lead to reductions in the
Company's costs. Pending a mutually satisfactory
outcome to negotiations on such changes, the Court
recommends that the Company's offer of 8th February be
accepted."
The Union rejected this recommendation and a Labour Court
conciliation conference took place in September, 1988. Settlement
proposals drawn up by the Industrial Relations Officer stated,
inter alia:-
"3. The parties agree to meet and discuss the Companies
aspiration towards a change in the overtime
arrangements.....
4. However, it is an expressed condition of this
agreement that the change aspired to under 3 above
can only be achieved by mutual agreement albeit
after the use, where necessary, of the full
procedures under the Agreement".
As the parties failed to reach agreement, the matter was referred
back to the conciliation service of the Labour Court on 13th
December, 1988. Conciliation conferences took place on 9th and
23rd January, 1988.
No agreement being reached, the matter was referred on 31st
January, 1989, to a full hearing of the Labour Court. The hearing
took place on 23rd February, 1989. It was acknowledged by both
parties that any unilateral enforcement of a Court Recommendation
would be a breach of the September, 1988 agreement.
UNION'S ARGUMENTS:
5. 1. The Union rejects management's proposals in relation to
overtime and the hours of cover provided by clerical workers.
2. The numbers of clerical staff have been reduced from 330
to 75 in recent years. The union contends that there are at
least twenty executive staff performing work proper to
clerical grades while receiving much higher remuneration.
This also results in unnecessary costs being incurred.
3. The current salary scales are #121 to #213.45 for
Clerical Officer and #155.86 to #233.09 for Senior Clerical
officer. (The staff are divided approximately 50:50 between
these grades). These rates are well below the top rates paid
to clerical staff in other employments (details supplied).
4. The current working week of 37.50 hours is longer than
that in the majority of similar employments.
5. The current starting and finishing times of 9am and 5pm
are in line with other clerical employments. The overtime
arrangements are in line with those of the 900 craft and
operative workers in the Group and also with industry
generally. The Union is not prepared to accept a worsening of
these conditions.
6. The nature of the job of these clerical workers,
particularly outside Dublin locations, is such that overtime
is working is essential. It is frequently necessary to
provide cover from 7am to 7pm and often later in the summer
months. This arises due to the perishable nature of the
product (concrete) and the fact that there has been such a
reduction in staff numbers (only one member of clerical staff
in many locations). The clerical staff have a wide range of
duties (details supplied) and are largely responsible for
maintaining the goodwill of customers.
7. The Union feels that management has not, over recent
years, had a helpful altitude towards the clerical staff who,
for their part, have been productive, co-operative and
flexible.
8. The Union contends that the Group is financially quite
successful despite recession in the building industry in
recent years.
COMPANY'S ARGUMENTS:
6. 1. Due to recession all Companies involved in the building
industry have been forced to implement changes. This has
occurred in the Roadstone Companies in relation to staff other
than clerical and administrative grades. For over three years
the Companies have been endeavouring to negotiate changes in
the conditions of clerical staff to bring them into line with
the competition. The current proposals in relation to
overtime and hours of attendance are absolutely necessary in
terms of cost saving.
2. The Labour Court has recognised the problems facing the
Roadstone Companies in this regard and has recommended that
both parties should attempt to agree changes to reduce the
Companies' costs to the degree necessary.
3. The Roadstone Companies must provide a service between
8am and 5.30pm without overtime payments to compete with other
companies. The Companies are currently being put at a
distinct competitive disadvantage because of the very high
cost of clerical administration at the locations. The basic
rates of pay are higher than in competitor companies (details
supplied). The additional cost to Roadstone is between
#4,000/#5,000 per location clerk per annum. In the present
competitive climate this additional cost cannot be passed on
to customers.
4. The Companies have made every effort over the past
number of years to bring about these changes in a peaceful and
reasonable manner. An offer of compensation to each affected
individual was made based on a lump sum equivalent to six
months' loss in earnings due to the changes in overtime
arrangements. The Union refused to negotiate on this or any
other basis.
RECOMMENDATION:
7. Having considered the submissions made by the parties, the
Court is of the opinion that arising largely out of the experience
of the parties during the recent recession, too many extraneous
factors have intervened to allow an objective approach to
negotiations. Whilst of course the work force concerned are
entitled to seek re-assurances on their security of employment, on
the actual question at issue it seems to the Court that the most
likely hope of fruitful negotiations is if the workers concerned
compute the cash value of the loss involved in conceding the
employers claim and the employers in turn put a realistic price on
the concession they seek.
The Court recommends that the parties try the above approach in
their negotiations on the matter.
~
Signed on behalf of the Labour Court
John O'Connell
15th March, 1989 --------------
A.K./U.S. Deputy Chairman