Labour Court Database __________________________________________________________________________________ File Number: CD90604 Case Number: ARB902 Section / Act: S67 Parties: WATERFORD CRYSTAL LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION |
Dispute concerning the rationalisation of the Furnace Areas.
Recommendation:
6. Although negotiations on manning-levels, practices and
conditions in the furnace area have been on-going for some years
with various offers being tabled and rejected, the negotiating
circumstances have changed dramatically with the passage of time
for both the Company and the Union. It is not now possible to
divorce the furnace area from the type of stringencies to which
all other sections of the business have of necessity been
subjected nor to apply compensatory terms which relate to another
era. It is in this context that the Court has considered the
Union claim and makes the following decisions.
MANNING Having considered the submissions of the
parties and viewed the operation in Kilbarry,
the Court decides that the manning-levels for
Furnace Operatives should be:-
Kilbarry: 24
Butlerstown: 8
Dungarvan : 8
COMPENSATION The Court considers security of employment
through a return to profitability a priority
consideration at this time.
Where, to achieve this end, changes are
required in work organisation, manning-levels
and work practices, the Court does not
consider compensation in respect of
acceptance of these changes is appropriate in
the existing circumstances of the business.
Accordingly the Court decides that the terms
which emerged at conciliation (as detailed in
Appendix 6 of the Company submission and
Appendix 1 of this document) should be
accepted by the Union. There were however
unique circumstances appertaining to the
furnace section as acknowledged by both
parties when they agreed an on-account
payment of #34,000, on return to work. The
Court has considered this payment and decided
that a further payment of #34,000 should now
be made to finalise the claim. This decision
is made on the basis that the payment does
not create a precedent and cannot be used by
any other Section or in any other situation.
EARNINGS It is not clear at this stage whether or to
what degree there will be a loss of earnings
to the 23 permanent staff in the furnace area
who were party to the original claim. The
Court therefore decides that, as an addendum
to this decision, it will review the average
earnings of the claimants when the revised
working arrangements have been twelve months
in place, and determine at that point whether
compensatory payment for loss of earnings is
justified.
SATURDAY WORKING The Court decides that the appropriate terms
for Saturday working are as covered by
paragraph 15 of Appendix 6 to the Company
submission. (Appendix 1 of this document).
INABILITY TO WORK The Court does not deem it appropriate to
AS FURNACE deal with this question on a hypothetical
OPERATIVE basis as circumstances may differ greatly
from individual to individual. The Court
noted the Company's statement that any such
case would be dealt with sympathetically by
them and recommends to both parties that
should any such case arise it should be dealt
with accordingly.
HEALTH & SAFETY The importance of Health and Safety was
raised during the hearing and the Court
recommends that there should be full
adherence to the provisions of paragraph 22
of Appendix 6 of the Company's submission
(Appendix 1 of this document). In addition
the parties should fully co-operate with the
study of the Health and Safety aspects of the
furnace area which was proposed to both the
Company and Union by the I.R.O. in paragraph
(i) of his letter of 2nd October, 1990.
Division: CHAIRMAN Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD90604 ARBITRATION NO ARB290
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 70
PARTIES: WATERFORD CRYSTAL LIMITED
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Dispute concerning the rationalisation of the Furnace Areas.
BACKGROUND:
2. The Furnace Department is responsible for the handling and
loading of raw materials into the furnaces for refining. The
Furnace Department staff control the temperature of the furnaces
to ensure that the quality of the refined glass is correct. They
are also responsible for the overall cleanliness of the blowing
areas and the pre-production preparation of the glass. To-date,
the operation has been manned by Pot Fillers and Furnacemen. The
Company in its 1987 Rationalisation Proposals proposed the
amalgamation of these positions into the position of Furnace
Operative. The Company also proposed certain changes in work
practices and conditions. The existing manning levels are as
follows:-
Kilbarry Butlerstown Dungarvan
Pot Filler 20 6 6
Furnaceman 10 5 5
Discussions on manning levels resulted in a study being carried
out by the I.P.C. in May, 1988. The I.P.C. concluded that the
manning levels at the three plants should be:-
Kilbarry Butlerstown Dungarvan
Furnace Operative 24 7 7
Since discussions commenced in 1987, vacancies as they occurred
were filled by either Furnace Operatives or contract workers.
These Furnace Operatives were recruited and appointed as such, but
operate as either Pot Fillers or Furnacemen pending conclusion of
an agreement on conditions with the Union. The contract workers
were recruited to make up the difference between the manpower
requirements as established by the I.P.C. and the existing level,
pending an agreement being concluded.
3. The I.P.C. report which recommended manning levels of 24/7/7
also provided an option to have two spare operators in Kilbarry to
reduce overtime shifts, thus bringing manning levels to 26/7/7.
The report was rejected by the Union and in November, 1988 the
Company offered a lump sum of #6,800 plus #1,200 worth of crystal
to cover productivity, the manning reductions and loss of
earnings. The offer was rejected by the Union and was
subsequently withdrawn by the Company. The Company in January,
1990, presented its requirements regarding cost reductions and
productivity in order to secure the maximum number of jobs. These
requirements included the immediate implementation of the
integration of the Pot Filler and Furnaceman positions to the
position of Furnace Operative with manning levels of 24 in
Kilbarrry and 7 each in Butlerstown and Dungarvan. The matter was
unresolved when an official strike, which lasted 14 weeks
commenced on 5th April, 1990. As part of the overall agreement
for resolution of the strike the parties agreed to put the
discussions on the Furnace Areas to one side for separate talks
under the auspices of the conciliation service of the Labour
Court. Conciliation conferences took place on 27th August, 12th,
25th, 27th September and 1st October, 1990, however, agreement
could not be reached and on 8th October, 1990, the issue was
referred to the Labour Court for binding arbitration. The Court
investigated the matter at a Court hearing on 16th November, 1990,
and made a visit to the operation in Kilbarry on 29th November,
1990.
UNION'S ARGUMENTS:
4. 1. The I.P.C. report states that two extra full-time
positions could be created at Kilbarry if overtime was
reduced. The work that is done during this overtime is the
early filling of pots within the normal 8.00 a.m. to 4.00 p.m.
shift. This is no longer possible as the glass blowers are
now working up to 4.00 p.m. This work could only be carried
out when the blowing rooms had a 3.20 p.m. finish. The
Company now require this work to be carried out on the
4.00 p.m. to midnight shift. If this happens then the
workload of the Furnace Operative will increase by 33% on that
shift. Nowhere in the I.P.C. report was this level of working
found possible. Indeed, the report states that if this work
was transferred to a shift to cover peak periods of activity
it would create two extra positions.
2. The Company has already offered manning levels of 26 in
Kilbarry and manning levels of 8 in Butlerstown and Dungarvan
as it would be unsafe to operate the latter two plants with
only 7 operatives. The Union does not understand why the
Company is now insisting on manning levels of 24/7/7.
4. 3. As a result of the productivity, manning reductions and
loss of earnings the Company offered, in October, 1988,
compensation amounting to #7,900 to each of 23 named workers.
The Union has accepted this figure but the Company now say it
is withdrawn and no longer on offer. The Union also seeks
compensation for 11 workers who were employed as Furnace
Operatives but are working as Furnacemen and Pot Fillers and
as such are at a loss and should be compensated in line with
their colleagues.
4. Occasionally the Company require Saturday working in the
blowing rooms. This requires extra work on the part of the
Furnacemen and Pot Fillers. In 1986 an agreement was reached
whereby the Company agreed to pay the 11 Furnacemen and Pot
Fillers in Butlerstown #466.44 as compensation for the extra
work required to facilitate Saturday work in the blowing rooms
for 6 Saturdays. In 1988 the Company required working on 6
Saturdays in the Butlerstown plant, however, the Company did
not pay the workers as per the agreement. In 1989 an
agreement was reached for the working of 4 Saturdays with
payment being pro-rata he 1986 agreement. As part of this
agreement a new agreement for future Saturday working was to
be negotiated within 4 weeks. The Company have failed to do
this.
5. Due to the nature of the job now being proposed by the
Company, the Union believes that a number of the Furnacemen
and Pot Fillers will be unable to carry out the work of
Furnace operatives. In this event protection of their
employment and earnings must be ensured. These workers have
long service with the Company and should not lose out as a
result of the Company changing work practices. The Union
believes that it is likely that some workers will find
themselves in this position and claim their earnings should be
protected if they have to be moved to another job.
COMPANY'S ARGUMENTS:
5. 1. The current operations in the Furnace Areas are
inefficient, costly and uncompetetive. Since 1987 the Company
has made a number of offers to the Union regarding changes in
practices, all of which were rejected. The offers made were
based on the formula in operation then. The Company withdrew
these offers subsequently as its position deteriorated due to
its present financial and trading difficulties. The Company
can no longer consider compensation in terms of the formula
used in the past.
5. 2. All staff are since 1989 and particularly under the
Comprehensive Agreement of June, 1990, co-operating with
change, flexibility and new work practices without specific
payments as part of securing the maximum number of permanent
jobs and the future of the Company. The Furnace Area workers
cannot be an exception, they too must contribute to the
Company's survival.
3. The Company is prepared to compensate workers in respect
of the loss of rostered overtime, quarterly paid
responsibility money and early fill assistance, only in
respect of those permanent workers who currently have such
payments. Compensation can only apply to actual established
loss of these contractual earnings. The Company has already
made a payment of #1,000 per man (#34,000 in total) to the
permanent Pot Fillers and Furnacemen concerned on return to
work in accordance with the agreement under the Industrial
Relations Officer's proposal of 2nd July, 1990.
4. In order to maximise productivity, reduce costs and more
efficiently organise the Furnace Areas, it is essential to
introduce the position of Furnace Operative immediately. The
Company urgently requires the savings that will accrue from
the integration of the Furnaceman and Pot filler positions
into the Furnace Operative position.
5. The Company maintains that manning levels of 24 in
Kilbarry and 7 each in Bulterstown and Dungarvan are adequate.
This is in line with the I.P.C. report of 1988 and is in
accordance manning levels specified in Clause 23.1 of the
June, 1990 Comprehensive Agreement. It is also in accordance
with the Union's commitment to maximise labour productivity as
per a recent agreement for profit improvement.
6. The offers made in the past by the Company were rejected
by the union and have subsequently been withdrawn. The
Company believes that many of the very serious problems which
bedevil the Company were caused by too generous concessions
made in the past. Any concessions at this stage would only
further weaken the Company's poor financial situation.
DECISION:
6. Although negotiations on manning-levels, practices and
conditions in the furnace area have been on-going for some years
with various offers being tabled and rejected, the negotiating
circumstances have changed dramatically with the passage of time
for both the Company and the Union. It is not now possible to
divorce the furnace area from the type of stringencies to which
all other sections of the business have of necessity been
subjected nor to apply compensatory terms which relate to another
era. It is in this context that the Court has considered the
Union claim and makes the following decisions.
MANNING Having considered the submissions of the
parties and viewed the operation in Kilbarry,
the Court decides that the manning-levels for
Furnace Operatives should be:-
Kilbarry: 24
Butlerstown: 8
Dungarvan : 8
COMPENSATION The Court considers security of employment
through a return to profitability a priority
consideration at this time.
Where, to achieve this end, changes are
required in work organisation, manning-levels
and work practices, the Court does not
consider compensation in respect of
acceptance of these changes is appropriate in
the existing circumstances of the business.
Accordingly the Court decides that the terms
which emerged at conciliation (as detailed in
Appendix 6 of the Company submission and
Appendix 1 of this document) should be
accepted by the Union. There were however
unique circumstances appertaining to the
furnace section as acknowledged by both
parties when they agreed an on-account
payment of #34,000, on return to work. The
Court has considered this payment and decided
that a further payment of #34,000 should now
be made to finalise the claim. This decision
is made on the basis that the payment does
not create a precedent and cannot be used by
any other Section or in any other situation.
EARNINGS It is not clear at this stage whether or to
what degree there will be a loss of earnings
to the 23 permanent staff in the furnace area
who were party to the original claim. The
Court therefore decides that, as an addendum
to this decision, it will review the average
earnings of the claimants when the revised
working arrangements have been twelve months
in place, and determine at that point whether
compensatory payment for loss of earnings is
justified.
SATURDAY WORKING The Court decides that the appropriate terms
for Saturday working are as covered by
paragraph 15 of Appendix 6 to the Company
submission. (Appendix 1 of this document).
INABILITY TO WORK The Court does not deem it appropriate to
AS FURNACE deal with this question on a hypothetical
OPERATIVE basis as circumstances may differ greatly
from individual to individual. The Court
noted the Company's statement that any such
case would be dealt with sympathetically by
them and recommends to both parties that
should any such case arise it should be dealt
with accordingly.
HEALTH & SAFETY The importance of Health and Safety was
raised during the hearing and the Court
recommends that there should be full
adherence to the provisions of paragraph 22
of Appendix 6 of the Company's submission
(Appendix 1 of this document). In addition
the parties should fully co-operate with the
study of the Health and Safety aspects of the
furnace area which was proposed to both the
Company and Union by the I.R.O. in paragraph
(i) of his letter of 2nd October, 1990.
~
Signed on behalf of the Labour Court
Kevin Heffernan
21st December, 1990 ----------------
B O'N/U.S. Chairman
APPENDIX 1
TERMS AND CONDITIONS - FURNACE OPERATIONS
KILBARRY/BUTLERSTOWN/DUNGARVAN
1. The position of Furnace Operative is introduced, by
integrating the previous positions of Furnaceman and Pot
Filler, with immediate effect.
2. All shifts and Furnace Operatives will rotate.
3. Complete interchangeability of Furnace Operatives
between K.1, K.2. K.3 and K.4 and Butlerstown as
required by Management.
4. Any additional ladling of pots other than normal shift
ladling will be carried out by the Furnace Operatives on
overtime e.g. following the 8 - 4 shift by the Furnace
Operative on the 9 - 4 shift.
5. All holidays and absence long term or short term will be
covered by trained relief personnel (either internal or
external) or by Furnace Operatives as required or as
decided by Management. Such relief personnel will be
trained by Furnace Operatives.
6. HOLIDAY ENTITLEMENTS
(a) During (factory) production shut-down periods a
skeleton crew will be maintained in the Furnace
Department, unless Management determine otherwise.
(b) The time at which annual leave (3 weeks) is take
will be decided by Management in consultation with
the employees. There will be no overlap on annual
or Winter week holiday periods unless Management
determine otherwise.
(c) The Winter week (5 x 8 hour days) will be taken on
five consecutive shifts and taken in rotation by
Furnace Operatives, unless management determine
otherwise.
(d) The remaining five days (8 hours) inclusive of
Company days may be taken on a mutually agreeable
date. A minimum of one weeks notice is required
for these holidays.
(e) Holiday entitlements are to be taken within the
leave year, except where required by management.
7. A meeting will take place between the Company and the
Union re: the Pot-Setting Agreement. Any unresolved
items will be processed through procedures.
8. the quick shift change-over payment is discontinued.
9. Where the working of a second (8 hours) shift is
necessary, payment for such a double shift will be at
double time (Ref. Clause 23.3 of Agreement of 24.06.
1990).
10. Where a rest day is worked, overtime will be paid at the
rate of Time + .50 for the first four hours and double time
for all hours thereafter, plus the shift premium (Time +
1/6th.).
11. CHRISTMAS DAY PAYMENT (#97.54)
The Christmas Day payment will only be paid to personnel
who work any of the 3 shifts on Christmas Day.
12. PUBLIC HOLIDAYS
(a) Furnace Operatives who work any of the 3 shifts
on a Public Holiday will be paid 8 hours at
double time in addition to the normal days pay
(i.e. Total value of treble time).
(b) Furnace Operatives who in respect of public
Holiday are on a rest day will be paid an extra
days pay in that week.
(c) Where a Furnace Operative works a Public Holiday
on his day off, he will be paid 8 hours at double
time.
13. Rostered Overtime payments will be discontinued. The
overtime duties will be incorporated into the normal
working shift i.e. 12 - 8, 8 - 4, 2 - 10, 4 - 12.
14. Furnace Operatives will not leave the premises during
shift without a supervisors and/or managers permission.
They must clock out and in on all occasions of leaving
and entering the premises.
15. Furnace Operatives will provide and service the furnace
requirements necessary in relation to Saturday overtime
working in the Blowing Department. This will be provided
for during the normal shift at no extra cost to the
Company other than that which is reflected by extra
effort in the Performance Scheme.
16. All furnace maintenance including cleaning of tubes, side
glass pockets, etc. will be done during the shift as they
arise and/or as required by management, at no extra cost
to the company.
17. Furnace Operatives will handle refractories into and out
of, basements, furnances, pot arches and kilns as
required by management.
18. Furnace Operatives will empty all production kilns as and
when required by management.
19. Furnace Operatives will assist in tests on melting, pot
arching, pot-setting, furnace controls, furnace
maintenance, (glass pockets, tubes etc.) without
additional payments.
20. Furnace Operatives will fully inform the incoming
operative, on hand-over of shift, of all operating
conditions before leaving the shift and place of work.
21. Furnace Operatives on shift will not leave the shift or
place of work until he has been relieved by the incoming
shift operative or until the permission of the
supervisor/manager has been granted.
22. HEALTH & SAFETY
All Furnace Operatives will participate in and co-operate
with the Company's Environmental and Biological
Monitoring Programme. Furnace Operatives will use and
wear protective clothing and respirators from range
available in the Company.
Furnace Operatives will also abide by hygiene and
housekeeping rules and regulations.