Labour Court Database __________________________________________________________________________________ File Number: CD89722 Case Number: LCR12717 Section / Act: S67 Parties: PRETTY POLLY (KILLARNEY) LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim by the Union on behalf of approximately 400 workers concerning the introduction of a 39 hour week.
Recommendation:
6. The Court has considered the submissions made by the parties.
Having regard to the terms of the P.N.R. it is entirely
appropriate that the Company should propose arrangements which
will alleviate the cost of the reduction in hours and also,
however marginally, increase the numbers employed. It is also
clear to the Court that the proposal to increase the knitters
allocation of machines from 66 to 69 is the only practicable
method to secure the increased output the Company requires. In
the circumstances therefore it seems reasonable to acknowledge the
contribution of the comparatively small group of workers who are
thus affected to the general benefit of all and the Court
recommends that this be done by means of a lump sum payment of
#250 to be paid to each knitter concerned on their acceptance of
the additional allocation of machines.
Division: Mr O'Connell Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD89722 RECOMMENDATION NO. LCR12717
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: PRETTY POLLY (KILLARNEY) LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim by the Union on behalf of approximately 400 workers
concerning the introduction of a 39 hour week.
BACKGROUND:
2. In December, 1987, the Company and Union agreed to implement
the terms of the Programme for National Recovery (P.N.R.) for the
3 year period 1988 to 1990. In February, 1989, the "Framework
Agreement on Hours of Work" was concluded at national level. This
Framework Agreement outlined the criteria to be utilised so as to
minimise any adverse effects on costs and employment caused by the
introduction of a 39 hour week for workers whose normal working
week is at or above 40 hours. The Company, at the outset,
accepted that with the exception of clerical workers, all other
full time workers' work arrangements constituted a normal 40 hour
working week. Consequently, the issue of concern to the Company
was how to minimise the cost impact of reducing the working week
by 1 hour. Following a review of operations the Company concluded
that all operations could be categorised as either unmeasured
jobs, work measured production jobs or machine minding jobs (i.e.
knitting department). The Company believes that of the 3
categories only the knitting area provided the opportunity of
minimising the cost impact of the implementation of the 39 hour
week.
3. At present there are 462 knitting machines in the department,
divided equally between 7 alleys, i.e. 66 machines per alley.
Initially the Company proposed introducing another 44 machines
(later reduced to 22) into the department in order to off-set
costs of the reduction of 1 hour. These machines would be
operated by the stand-by knitter and one of the 3 shift fixers.
The Union rejected this proposal on the grounds that it involves
cross functioning, whereby a shift fixer would have to carry out
the functions of a knitter. This would be in breach of the 1979
Package Deal which lays down the role of the shift fixer. It
would also lead to knitters seeking similar conditions to those
enjoyed by shift fixers. As agreement was not reached at local
level the matter was referred on 25th September, 1989, to the
conciliation service of the Labour Court. No agreement was
reached at conciliation conferences held on 4th October, and 30th
November, 1989, and the dispute was referred on 11th December,
1989, to the Labour Court for investigation and recommendation.
The Court investigated the dispute on 13th December, 1989, in
Tralee.
UNION'S ARGUMENTS:
4. 1. The Union believes that the proposals put forward by the
Company are not helpful because they cross functions i.e.
fixers operating as knitters. Not only is this in breach of
an agreement but could lead to consequential claims. The
Union contends that the Company should consider the
installation of 66 machines and employ a full team to run the
extra alley. This would enable the 39 hour week to run
smoothly and would increase production in the short term.
2. The 39 hour week was the carrot that led to the acceptance
of the P.N.R. Throughout the country, workers have more than
adequately compensated their employers by the low wage
increases provided for in the P.N.R. The Company has argued
strongly on the P.N.R. and the Framework Agreement on hours of
work. However, it must be appreciated that the workers were
never balloted on the Framework Agreement.
3. Workers in the knitting department are being asked to
carry the cost of implementing the 39 hour week. Having
regard to the fact that the Company has already been
adequately compensated by the derisory increases under the
P.N.R. the 39 hour week should be implemented from 1st
January, 1990, without the workers having to undergo any of
the proposals put forward by the Company.
COMPANY'S ARGUMENTS:
5. 1. Section 4 of the Framework Agreement provides that the
parties in making agreements for the reduction in the working
week should utilise the criteria "... so as to minimise any
adverse effects on costs and employment."
2. In a final effort to reach agreement the Company agreed to
explore a proposal to place extra machines on to the end of
each alley. The proposal would increase a knitter's machine
allocation from 66 to 69 (70 in one case). It would not
interfere with the existing stand-by knitter or shift fixer
arrangements. The Company is willing to accept this proposal,
however, the Union has not so far accepted it. The proposal
is fully in line with the cost minimisation criteria provided
for in Section 4 of the Framework Agreement.
5. 3. Acceptance of the proposal to place additional machines on
each alley would generate additional employment on a permanent
night shift basis on some post knitting work measured
production operations.
4. The 39 hour week should only be introduced in line with
the implementation of the arrangements to minimise costs. The
Company considers that in view of the delays in resolving the
matter, the 1st May, 1990, is the earliest date from which the
39 hour week can be implemented.
RECOMMENDATION:
6. The Court has considered the submissions made by the parties.
Having regard to the terms of the P.N.R. it is entirely
appropriate that the Company should propose arrangements which
will alleviate the cost of the reduction in hours and also,
however marginally, increase the numbers employed. It is also
clear to the Court that the proposal to increase the knitters
allocation of machines from 66 to 69 is the only practicable
method to secure the increased output the Company requires. In
the circumstances therefore it seems reasonable to acknowledge the
contribution of the comparatively small group of workers who are
thus affected to the general benefit of all and the Court
recommends that this be done by means of a lump sum payment of
#250 to be paid to each knitter concerned on their acceptance of
the additional allocation of machines.
~
Signed on behalf of the Labour Court
John O'Connell
_________________________
25th January, 1990 Deputy Chairman.
B.O'N/J.C.