Labour Court Database __________________________________________________________________________________ File Number: CD90194 Case Number: LCR12888 Section / Act: S67 Parties: TILLOTSON LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning conditions for the implementation of a 39 hour week.
Recommendation:
5. The Court having considered the oral and written submissions
of the parties recommends as follows:-
(1) The working week will be 39 hours with effect from 1st
May, 1990. Hourly rates of pay will be revised to 1/39th
of basic weekly rates (from the current 1/40th).
Current hours of work will be maintained at 40, on the
basis that one hour is thereby accrued, to be taken off
at a later stage, on completion of 40 hours. (Where a
person works more than 39 hours but less than 40 in a
given week, accrued time will only be credited for each
period of 15 minutes worked. The maximum amount of time
which can be accrued is 48 hours (6 days) per year.
Public holidays/floating days/jury or compassionate leave
falling on a Friday will register an accrual of one hour
provided that 32 hours have been worked or credited in
that week). All existing arrangements to remain
unchanged as regards holidays and absenteeism
policies/procedures. Overtime to be payable on
completion of 40 hours in any week. Overtime to be paid
based on the new hourly rate (1/39th). An electronic
clocking system to be introduced on a trial basis.
(2) The Court notes the terms of the Company/Union Agreement
remains unchanged.
Division: MrMcGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD90194 RECOMMENDATION NO. LCR12888
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: TILLOTSON LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning conditions for the implementation of a 39
hour week.
BACKGROUND:
2. In mid 1989 the parties agreed in principle to reduce the
working week from 40 to 39 hours under the terms of the Programme
for National Recovery (P.N.R.). The Company initially proposed
that the 39 hour week be implemented by taking the hour off on a
designated day. The Union indicated a preference for a system
whereby the one hour could be accrued and taken off in additional
floating days. On 12th September, 1989 the Company outlined its
proposals to set the Unions proposed format in place and included
a number of cost reduction factors which the Company claims are
necessary to minimise the negative cost impact that a reduction in
working hours has on the Company (details of the Company 23 point
proposal supplied to the Court). The Union rejected the Company
proposals and extensive negotiations were held at local level.
The Company made some adjustments to the proposals but agreement
could not be reached and the matter was referred on 23rd November,
1989 to the conciliation service of the Labour Court. A
conciliation conference was held on 16th January, 1990 and it was
agreed that the following settlement proposals would be
recommended for acceptance by both sides:-
"The working week will be 39 hours as per the Programme for
National Recovery with effect from 1st March, 1990. Hourly
rates of pay will be revised to 1/39th of basic weekly rates
(from the current 1/40th).
Current hours of work will be maintained at 40, on the basis
that one hour is thereby accrued, to be taken off at a later
stage on completion of 40 hours' work. Where a person works
more than 39 hours but less than 40 in a given week, accrued
time will only be credited for each period of 15 minutes
worked.
As accrued time is worked time, no time off can be accrued
during holiday periods. Therefore, the maximum amount of
time which can be accrued is 48 hours (6 days) per year.
Public Holidays or Floating Days taken on a Friday will
register an accrual of one hour provided that 32 hours have
been worked in that week prior to the holiday.
Accrued time is to be calculated over the period of the
holiday year (1st April - 31st March). All accrued time
would have to be taken within the accruing year. Accrued
time must be utilised before any requests for time off can be
considered. Accrued time may be used for absences due to
uncertified illness. Accrued time may only be taken with the
approval of the supervisor, so as to avoid disruption or lack
of cover etc. Current ad-hoc arrangements on "working up
time" are to be eliminated.
Under these proposals, all existing arrangements will remain
unchanged as regards holidays and absenteeism
policies/procedures.
Overtime would only be payable on completion of 40 hours in
any week. Overtime would be payable based on the new hourly
rate (1/39th).
The effective introduction and control of this arrangement
will require the introduction of electronic clocking stations
to replace the existing system. This will probably have to
be introduced on a pilot basis initially to ensure the system
is streamlined prior to its full introduction.
As key operations are identified, operators are to carry out
their specified gauging/checks, and fill in the results on
control charts, and will fully co-operate with collection of
other machine information i.e. hourly output, breakdown
analysis or any other specified check which may be required.
If these proposals are rejected by either side, they cease to
have any status, and the parties will revert to the
pre-conciliation conference position."
The Union rejected the settlement proposals and further talks were
held at local level. There was broad agreement on how the shorter
working week would apply but the Union's main difficulty with the
proposals was in relation to the introduction of electronic
clocking stations and the operation of control charts. The
Company made a final offer to negotiate on the proposal for the
operation of control charts separately once the implementation of
the 39 hours week is agreed. The Company's final offer was
rejected by the workers on 10th May, 1990 and the matter was
referred to a full hearing of the Labour Court which was held in
Tralee on 15th May, 1990.
UNION'S ARGUMENTS:
3. 1. The Union is seeking the implementation of the 39 hour
week effective from the 1st January, 1990. There is broad
agreement between the parties on how the 39 hour week would
apply. The basic difference between the parties is the
Company's insistence on claw back conditions and changes.
2. The Company proposal in relation to electronic clocking is
an unacceptable clawback. In relation to the proposal for the
operation of control charts, this is already provided for in
house agreements and is not necessary for inclusion in an
agreement on the 39 hour week.
3. The workers have complied with the terms of the P.N.R. and
should not have to make concessions for the implementation of
the 39 hour week. Other companies in the region have conceded
the 39 hour week without the need for claw back from their
workers.
COMPANY'S ARGUMENTS:
4. 1. The conditions required by the Company to help offset the
considerable cost of the 39 hour week are in keeping with
clause 4 of the framework agreement under the P.N.R. The
conditions are fair and reasonable and designed to ensure that
targets and standards are not unfavourably impacted upon.
2. The Company proposals in relation to electronic clocking
are necessary to monitor and calculate accrued hours
efficiently. The proposal in relation to the operation of
control charts is important for quality control. In an effort
to settle the dispute the Company proposed to take this
proposal out of the 39 hour agreement and enter into
meaningful discussions on the independent question of control
charts following the resolution of the 39 hour agreement.
3. The offer made by the Company on 12th September, 1989 was
in keeping with both the spirit of the framework agreement.
The Company's proposals should be implemented on 1st August,
1990.
RECOMMENDATION:
5. The Court having considered the oral and written submissions
of the parties recommends as follows:-
(1) The working week will be 39 hours with effect from 1st
May, 1990. Hourly rates of pay will be revised to 1/39th
of basic weekly rates (from the current 1/40th).
Current hours of work will be maintained at 40, on the
basis that one hour is thereby accrued, to be taken off
at a later stage, on completion of 40 hours. (Where a
person works more than 39 hours but less than 40 in a
given week, accrued time will only be credited for each
period of 15 minutes worked. The maximum amount of time
which can be accrued is 48 hours (6 days) per year.
Public holidays/floating days/jury or compassionate leave
falling on a Friday will register an accrual of one hour
provided that 32 hours have been worked or credited in
that week). All existing arrangements to remain
unchanged as regards holidays and absenteeism
policies/procedures. Overtime to be payable on
completion of 40 hours in any week. Overtime to be paid
based on the new hourly rate (1/39th). An electronic
clocking system to be introduced on a trial basis.
(2) The Court notes the terms of the Company/Union Agreement
remains unchanged.
~
Signed on behalf of the Labour Court
Tom McGrath
________________________
31st May, 1990. Deputy Chairman
A.S./J.C.