Labour Court Database __________________________________________________________________________________ File Number: CD89685 Case Number: LCR12708 Section / Act: S67 Parties: COW AND GATE LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim that the shift premium for 2 shift, 5 day week working should be 25%.
Recommendation:
5. The Court has considered the evidence presented by both
parties and is of the view that the premium of 22.5% (presently
being paid as a temporary arrangement) is reasonable in the
circumstances and recommends that it should be accepted by the
Union in respect of the two workers involved in the claim.
Division: Ms Owens Mr Brennan Mr O'Murchu
Text of Document__________________________________________________________________
CD89685 RECOMMENDATION NO. LCR12708
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: COW AND GATE LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim that the shift premium for 2 shift, 5 day week working
should be 25%.
BACKGROUND:
2. The Company is engaged in the processing of specialised infant
milk formula, mainly for export to Europe. It employs 160 workers
on a variety of work patterns. Shift patterns in operation and
the premia which apply to them are as follows:-
Shift Work Pattern Premium
4 7 day 35%
3 5 day 27.5%
2 5/6 day roster 27.5%
*Day Work 5/6 day roster 12.5%
(Every Saturday
worked)
*Day Work 5/7 day roster 12.5%
(Every second
weekend worked)
2 5 day at issue
(* Established following Labour Court Recommendation No. 10234)
The Company transferred two workers to a two shift 5 day week
cycle of working. It offered a premium of 15% (increased later to
18%) for the shift. The rate was unacceptable to the two
workers. Their Union sought a 25% premium. Eventually both
parties agreed a compromise rate of 22.5% to operate until the
dispute was processed through procedures. The dispute was the
subject of a Labour Court conciliation conference on 12th July,
1989. As no agreement was reached both parties agreed to a full
Court hearing. The Court investigated the dispute in Wexford on
15th December, 1989.
UNION'S ARGUMENTS:
3. 1. The Labour Court has already recommended in a similar
situation when an attempt to alter the payment of a 25%
premium for 2 cycle shift working was made. Labour Court
Recommendation No. 9051 dated 8th August, 1984 states:-
"The Court having given very careful consideration to the
submissions of both parties and to the evidence given at
the hearing, does not, in the particular circumstances
recommend implementation of the shift rates for which the
company sought ratification."
2. A statement from the Company's Managing Director signed on
28th February, 1985 quoted 25% premium as the appropriate rate
in the Company, for two cycle shift working (copy of briefing
note for meeting dated 28th February, 1985 supplied to the
Court).
3. It is the Union's contention that a reduction in pay
elements is not permissible under the terms of the Programme
for National Recovery.
COMPANY'S ARGUMENTS:
4. 1. In establishing a premium for the 2 cycle shift, 5 day
week pattern operation the Company must have regard to the
internal logic of its work patterns and to the determination
of a correct relationship between the shift premia for work
patterns. The 2 shift 5/6 day roster attracts a premium of
27.5% while the day shift 5/6 day roster attracts a premium of
12.5%. It is clear that the premium appropriate to the 2
shift, 5 day week pattern is 15%. A rate of higher than 18%
for the operation would create an imbalance in the system of
shift rates.
2. The Company reject the Union's contention that Labour
Court Recommendation No. 9051 is relevant to the current
situation. There are a number of issues which differentiate
the two disputes. When recommendation No. 9051 issued -
(a) The Company's premia had been determined by
reference to ICOS agreements, because the Company's
operation had traditionally been part of the dairy
industry. This has now changed in that the Company
is a stable year-round manufacturing employment not
affected by seasonal factors.
(b) At that time also, according to the Union (Labour
Court Recommendation 9051 - Summary of Unions
arguments) premia were determined by reference to
ICOS agreements at "25% for almost all shifts."
Since then premia have been negotiated and agreed
internally, reference
4 shift 35%
3 shift 5 day 27.5%
2 shift 5/6 day roster 27.5%
Company premia are quite different to those which
apply in the dairy industry in general. This is
acknowledged by the Union, by virtue of their
claims.
(c) At the time of Labour Court Recommendation 9051 a
change in the shift premium would have brought about
an ongoing loss of earnings - this would not happen
in this case.
3. The Labour Court, (Labour Court Recommendation 10234)
acknowledged that the Company premia should be determined by
reference to the circumstances of the Company. No mention was
made of ICOS agreements by any of the parties. The Union's
case was based on comparison with "industrial workers."
RECOMMENDATION:
5. The Court has considered the evidence presented by both
parties and is of the view that the premium of 22.5% (presently
being paid as a temporary arrangement) is reasonable in the
circumstances and recommends that it should be accepted by the
Union in respect of the two workers involved in the claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
__________________________
18th January, 1990 Deputy Chairman.
A.McG./J.C.