Labour Court Database __________________________________________________________________________________ File Number: CD89866 Case Number: LCR12757 Section / Act: S67 Parties: VITA CORTEX LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union for plus payments for band knife operators.
Recommendation:
5. The Court recommends that the Company should pay the plus
payment to Band Knife Operators subject to the same conditions as
apply in the Dublin plant with effect from 1st July, 1990.
Division: Mr O'Connell Mr Brennan Mr Devine
Text of Document__________________________________________________________________
CD89866 RECOMMENDATION NO. LCR12757
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: VITA CORTEX LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union for plus payments for band knife operators.
BACKGROUND:
2. The Company manufactures foam cushions for the furniture
industry and is located at Navan. There are two other companies
within the group at Dublin and Cork who pay a band knife operator
allowance to workers who qualify. Band knife operators in Dublin
have been receiving the allowance, which currently amounts to
#7.57 since 1987. The allowance has been paid to the operators in
Cork for a number of years. The Union first submitted the claim
on behalf of the workers in Navan in 1988 during negotiations on
the first phase of the Programme for National Recovery (P.N.R.).
The claim was deferred because the Company pleaded inability to
pay due to financial problems. The claim was to be considered
during discussions on the second phase of the P.N.R. The Company
made no offer to the Union which is claiming that the allowance
should be paid from the date of the second phase of the P.N.R. to
workers who qualify. The Company has rejected the claim. Local
discussions and a conciliation conference held on the 22nd
November, 1989 failed to resolve the dispute which was referred to
the Labour Court for investigation and recommendation on the 29th
November, 1989. A Court hearing was held in Navan on the 7th
February, 1990.
UNION'S ARGUMENTS:
3. 1. Dublin and Navan branches of the Company have been dealt
with similarly and at the same time on the subject of pay and
other conditions for a number of years. This position was
clearly established in 1984 on the introduction of payments to
reduce certain wage differentials between the Cork and
Dublin/Navan branches. During discussions under the first
phase of the P.N.R. the Union acceded to the Company's request
to defer the claim on the conditions that meaningful
discussions would take place and the Company's statement that
it would address the claim. The Company has not honoured this
commitment. The allowance being claimed is a payment
totalling #7.57 per week to be applied pro-rata on a daily
basis subject to a minimum two hours per day period of
operation. As this particular branch of the Company operates,
the allowance would apply in full to one operator each week.
It would apply partly in most weeks to a second operator and
fully to the two operators occasionally.
2. The Union has adopted a fair and reasonable position but
is angered at the Company's failure to get within the spirit
and intent of the first phase agreement reached under the
P.N.R. The parity established with the Dublin Branch cannot
be broken and the Union is not willing to forego this
allowance indefinitely. The cost of implementing this
allowance is not financially impossible for the Company. The
absolute maximum cost to the Company would be #860.08 per
annum, and this amount would apply where two operators
actually received the allowance. The Union is seeking the
payment of the allowance from the commencement of the second
phase of the P.N.R.
COMPANY'S ARGUMENTS:
4. 1. The Company's refusal to concede the claim was based on a
worsening trading position with no short term improvement in
sight. As a result of the poor performance at the Navan
factory the Company was forced to lay off one out of a factory
workforce of four workers.
2. The Company has agreed the equity of the claim and has
agreed that if the factory started to show a satisfactory
level of profit then the claim would be met. However the
present trading position of the Navan factory is an extremely
difficult one in a market which is very competitive, and price
sensitive. The performance of the factory during 1988 and
1989 has been one of falling sales and increased losses.
3. The Company has a very difficult task ahead if the
business is to be turned around. The current wage structure
is far superior to any competitors, none of which are
unionised. The Company has endeavoured where possible to
eliminate any anomalies in rates of pay which exist, and has
abided by the terms of the P.N.R. The Company however is not
in a position at this time to carry any additional costs which
would further jeopardise its chances of recovery.
RECOMMENDATION:
5. The Court recommends that the Company should pay the plus
payment to Band Knife Operators subject to the same conditions as
apply in the Dublin plant with effect from 1st July, 1990.
~
Signed on behalf of the Labour Court
John O'Connell
__________________________
15th February, 1990 Deputy Chairman.
T.O'D./J.C.