Labour Court Database __________________________________________________________________________________ File Number: CD89582 Case Number: LCR12600 Section / Act: S67 Parties: NYPRO LIMITED - and - FEDERATED WORKERS' UNION OF IRELAND |
Date of implementation of reduction of weekly working hours under the Programme for National Recovery (P.N.R.).
Recommendation:
5. Having considered the submissions from both parties the Court
recommends that a 39 hour working week be introduced in the
Company from 1st January, 1991.
Division: Ms Owens Mr Brennan Mr Walsh
Text of Document__________________________________________________________________
CD89582 RECOMMENDATION NO. LCR12600
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: NYPRO LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
AND
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Date of implementation of reduction of weekly working hours
under the Programme for National Recovery (P.N.R.).
BACKGROUND:
2. Nypro Limited is engaged in the contract injection moulding
business. After discussions at local level the terms of the
P.N.R. were implemented in the Company with effect from 1st
January, 1989. The P.N.R. provides for discussions at local level
regarding a reduction in working hours where the normal working
week is at or above 40 hours. The reduction would be one hour per
week and would be implemented before expiry of the three year
period of the P.N.R. The Company claims that, due to the cost
implications, the date for implementation of the reduced working
hours should be deferred until the end of the P.N.R. three year
period. The Union claims that the reduced working hours should be
introduced from an early date. The matter was referred to the
conciliation service of the Labour Court on 1st August, 1989 and
as no agreement was reached at a conference on 25th August, 1989
the matter was referred, on 30th August, 1989 to a full hearing of
the Labour Court. The hearing took place on 6th October, 1989.
UNION'S ARGUMENTS:
3. 1. The terms of the P.N.R. provide for negotiations on the
introduction of a 39 hour week. The implementation date
should be negotiated between the Company and the Union taking
into account the local circumstances. By refusing to enter
into such negotiations the Company is acting in breach of the
terms of the P.N.R.
3. 2. The Company is enjoying the benefits of the P.N.R. with
regard to cost-stabilisation over the three year period and
labour flexibility which ensures maximum efficiency and
competitiveness. The benefits of the P.N.R. which the Company
enjoy were conceded by the Union on the basis that one of the
benefits to the workers would be negotiations on the
introduction of the 39 hour week from an early date.
3. The Company is well capable of meeting the cost of
introducing the reduction in the working week. The Company
will achieve fixed wage costs for a three year period and the
additional cost associated with the 39 hour week is not an
excessive burden for the Company.
4. It has been quite common for companies to concede the
introduction of a 39 hour week under the P.N.R. from an early
date. There is no justifiable basis for the Company to refuse
to do the same.
COMPANY'S ARGUMENTS:
4. 1. The terms of the P.N.R. provide for the introduction of a
39 hour week "before expiry of the Programme" (under Clause
8). To implement the 39 hour week at the end of the P.N.R. is
in accordance with this clause.
2. The Company is seeking to defer implementation in order to
minimise the negative effects on costs, competitiveness and
jobs. The Company has embarked on a #2.3m. development
programme which would be seriously undermined by a reduction
in working time and would result in loss of business. Some
business has already been lost due to lack of price
competitiveness which has led to minimal layoff and short-time
working.
3. To ignore the implications for cost competitiveness and
jobs would not only be in breach of the terms of the P.N.R.
but would seriously undermine the viability of the Company.
Accordingly the Company is seeking to implement the reduction
in working time at the end of the 3 year period of the P.N.R.
RECOMMENDATION:
5. Having considered the submissions from both parties the Court
recommends that a 39 hour working week be introduced in the
Company from 1st January, 1991.
~
Signed on behalf of the Labour Court,
Evelyn Owens
__19th__October,___1989. ___________________
A. S. / M. F. Deputy Chairman