Labour Court Database __________________________________________________________________________________ File Number: CD90136 Case Number: LCR12946 Section / Act: S67 Parties: NOONAN CONTRACT CLEANING LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union for improved pay and conditions for part-time cleaners at Cavan General Hospital.
Recommendation:
5. Having regard to the general competitive situation in the
industry the Court is of the view that the general extension of
conditions obtaining under the Dublin J.L.C. in this instance
would leave the Company at a severe disadvantage in future
tendering for the contract in Cavan.
However in the expectation of the early establishment of a
framework to apply nationally and having regard to rates paid
elsewhere by the Company the Court recommends that the offer made
by the Company on rates and conditions with effect from 1st June,
1990 be accepted and that as and from the 1st November, next the
rate be increased to #3 per hour, other conditions to remain
pending the outcome of negotiations on a nationally applicable
structure.
Division: Mr O'Connell Mr Keogh Mr O'Murchu
Text of Document__________________________________________________________________
CD90136 RECOMMENDATION NO. LCR12946
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: NOONAN CONTRACT CLEANING LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union for improved pay and conditions for
part-time cleaners at Cavan General Hospital.
BACKGROUND:
2. The Company successfully tendered for the cleaning contract at
the new Cavan General Hospital in March, 1989. A fixed price
contract with the Hospital was signed for a duration of 18 months
(from June, 1989 to December, 1990). The Company recruited
part-time cleaners on a contract basis at a basic hourly rate of
pay of #2.75 per hour (details of terms and conditions of
employment supplied to the Court). Holidays are 10 days for 5 day
workers and 12 days for 6 day workers. The Union made a claim for
improvements in wages and conditions of employment in line with
the provisions of the Contract Cleaning Joint Labour Committee
(J.L.C.) for the City and County of Dublin. The Union claim is as
follows:-
1. #3.20 per hour + 65p per shift.
2. 13 days Annual Leave and Good Friday as Bank Holiday.
Additional holidays as per the Holiday (Employees) Act
plus 3 additional holidays as per the J.L.C.
3. Provision of written terms of employment.
4. Sick Pay Scheme.
5. Disclosure of information regarding the duration of
contract.
6. Provision of uniforms free of charge.
The Company rejected the claims and as no agreement was reached at
local level the matter was referred on 26th October, 1989, to the
conciliation service of the Labour Court. A conciliation
conference was held on 8th February, 1990 at which the Company
offered to increase the basic hourly rate by 10p from 1st June,
1990. This offer was rejected by the Union and as a negotiated
settlement was not possible the matter was referred on 5th March,
1990 to a full hearing of the Labour Court on 2nd July, 1990 (the
earliest date suitable to the parties).
UNION'S ARGUMENTS:
3. 1. The present pay and conditions of employment of the
workers concerned are less favourable than those of other
workers employed by the Company in other areas. The Dublin
J.L.C. rate for the Industry is appropriate to the workers at
Cavan Hospital and the present lower rates imposed by the
Company are discriminatory and unfair.
2. If the Company arbitrarily set the rates and conditions of
the workers at levels below those applying elsewhere, it
consciously discriminated against the workers in the area and
had no right to assume they would be satisfied with inferior
conditions of employment. It must therefore bear the cost
resulting from the claim.
3. The Company's offer of a increase of 10p per hour from 1st
June, 1990 is not acceptable and the Union's claim should be
conceded from at least 1st January, 1990.
COMPANY'S ARGUMENTS:
4. 1. There is no J.L.C. for the contract cleaning industry
outside the Dublin area. Accordingly there is no obligation
on any Company to pay legally binding minimum rates of pay and
conditions of employment. In this situation the Company
applies a variety of rates of pay and conditions outside the
Dublin area in order to compete with predatory competition
from other companies. These rates generally reflect local
conditions in each centre in which the Company operates.
2. The Company has signed a fixed price contract for an 18
month period. Labour costs represent a significant proportion
of the total cost structure of each contract and the Company
is not in a position to absorb the increased costs associated
with the Union's claim. There is no guarantee that the
Company will receive a price increase when the present
contract ends given the extremely competitive conditions in
the industry particularly outside the Dublin area.
3. Despite the above the Company indicated at the
conciliation conference that it was willing to increase the
hourly rate of pay by 10p from 1st June, 1990 in the interest
of resolving the matter. The Company was also willing to
discuss the implementation of a number of the non
cost-increasing elements of the Dublin J.L.C.
4. The Union's claim should be deferred pending the outcome
of a separate Labour Court investigation which has already
been initiated into the establishment of a J.L.C. outside the
Dublin area. Until this wider question has been conclusively
addressed by the Court it would put the Company at a
disadvantage with its competitors if it were singled out for
the application of Dublin J.L.C. terms in this instance only.
RECOMMENDATION:
5. Having regard to the general competitive situation in the
industry the Court is of the view that the general extension of
conditions obtaining under the Dublin J.L.C. in this instance
would leave the Company at a severe disadvantage in future
tendering for the contract in Cavan.
However in the expectation of the early establishment of a
framework to apply nationally and having regard to rates paid
elsewhere by the Company the Court recommends that the offer made
by the Company on rates and conditions with effect from 1st June,
1990 be accepted and that as and from the 1st November, next the
rate be increased to #3 per hour, other conditions to remain
pending the outcome of negotiations on a nationally applicable
structure.
~
Signed on behalf of the Labour Court
John O'Connell
______________________________
12th July, 1990. Deputy Chairman
A.S./J.C.