Labour Court Database __________________________________________________________________________________ File Number: CD89556 Case Number: LCR12585 Section / Act: S67 Parties: NYPRO LIMITED - and - FEDERATED WORKERS' UNION OF IRELAND |
Claim on behalf of 23 shift workers for overtime worked at weekends/rest days to be paid on the consolidated shift rate.
Recommendation:
8. The Court having considered the views of the parties makes the
following recommendations:-
1. That shift premium be paid to shift workers in respect of
all overtime i.e. that for each hour worked basic pay by
1.50 or 2 times plus the shift premium be paid.
2. That with effect from 1st January, 1992 overtime will be
paid at the consolidated rate i.e. Basic pay and shift
premium x by 1.50 or 2 times for each hour worked.
Division: MrMcGrath Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD89556 RECOMMENDATION NO. LCR12585
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: NYPRO LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Claim on behalf of 23 shift workers for overtime worked at
weekends/rest days to be paid on the consolidated shift rate.
BACKGROUND:
2. In 1982 the Company took over the old Solus Plant along with
most of the former Solus employees. A Company/Union Agreement was
concluded on 6th December, 1982. The section relating to overtime
working provides as follows:-
Shiftworkers working overtime on a weekday have their
overtime premium applied to their basic pay and shift
premium.
i.e. 1.5 x (Basic plus shift premium).
Shiftworkers working overtime on a weekend have their
overtime premium applied to their basic pay.
i.e. 1.5 or 2 x (Basic pay).
This arrangement was made as no agreement could be reached on a
four shift system.
3. This arrangement continued in operation until 1987, when
during the course of a strike, the Company reached an agreement
with the employees who remained working that shift premium would
be paid to shift workers in respect of all overtime; weekdays and
weekends; on the basis of actual hours worked, i.e. for each hour
of overtime actually worked, the relevant shift premium would be
paid
1.5 or 2 x (Basic pay) + Shift Premium in respect of
actual only.
This was agreed in return for a 35.5% shift premium for a 4 group
shift working.
4. The Union lodged a claim for the payment of overtime on the
consolidated rate for weekend/rest day working as the four shift
system was now in operation. The Company rejected the claim and
following negotiations at local level put forward the following
proposal:-
"The Company agrees to review the method of payment for
overtime to shift workers on or before June 1st, 1991 for
implementation as and from January 1st, 1992 on the following
basis:
If the overall competitive position of the Company is such
that an improvement can be made then the Company will pay all
shiftwork overtime on the "Consolidated Rate" i.e. (BASIC +
PREMIUM) X OVERTIME RATE.
If, in the Company's view, the competitive position does not
warrant such a change it is prepared to immediately submit
the matter to binding arbitration on June 1st, 1991 for a
decision i.e. without resort to conciliation etc."
5. This proposal was rejected by the Union. The matter was
referred to the conciliation service of the Labour Court on 12th
June, 1989. A conciliation conference was held on 10th July,
1989. As no agreement was reached the issue was referred to the
Labour Court for investigation and recommendation. A Court
hearing was held on 4th September, 1989.
UNION'S ARGUMENTS:
6. 1. The original reason for agreeing an exceptional weekend
overtime arrangement was specifically related to the absence
of 4 shift working so as to ease the overtime cost of
providing weekend cover. The Company now has a commitment on
4 shift working. The justification for the exceptional
arrangement no longer exists. Payment for weekend overtime
should now be brought into line with mid-week overtime
arrangements.
2. It is clear that the Court intended in Labour Court
Recommendation No.'s 10,118 and 11,209, (issued in connection
with the 24th and 25th Wage Rounds), that the weekend overtime
issue and 4 group shift issue were inter-related and that the
settlement of one should automatically mean the settlement of
the other. The Union has met its side of the equation - the
Company should now be told to balance it by conceding the
Union's claim.
3. The Company has already conceded the principle of paying
overtime on the consolidated rate. The Union is simply
seeking the extension of the structure to weekend working.
The Court has conceded the principle of overtime on the
consolidated rate on many occasions.
COMPANY'S ARGUMENTS:
7. 1. The Company must, in the interest of both its shareholders
and employees, take into account at all times the competitive
situation while bearing in mind the need to treat all its
employees equally.
2. With this in mind the Company was, and still is, prepared
to improve the payment system for the minority by bringing it
into line with the payment made to the majority.
3. Furthermore it is prepared to agree to pay all employees
on the Consolidated Rate as and from the end of the current
agreement if the competitive position allows. However it does
not wish to unilaterally decide on the competitiveness and is
prepared to put the matter to binding arbitration if
necessary.
RECOMMENDATION:
8. The Court having considered the views of the parties makes the
following recommendations:-
1. That shift premium be paid to shift workers in respect of
all overtime i.e. that for each hour worked basic pay by
1.50 or 2 times plus the shift premium be paid.
2. That with effect from 1st January, 1992 overtime will be
paid at the consolidated rate i.e. Basic pay and shift
premium x by 1.50 or 2 times for each hour worked.
~
Signed on behalf of the Labour Court
Tom McGrath
_______________________
4th October, 1989. Deputy Chairman
M.D./J.C.