Labour Court Database __________________________________________________________________________________ File Number: CD90171 Case Number: LCR12903 Section / Act: S67 Parties: KLOPMAN INTERNATIONAL LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning conditions of shift workers temporarily transferred to day work.
Recommendation:
5. The Court having considered the oral and written submissions
of the parties considers that where a transfer is made at the
request of management the worker concerned should be paid his
shift rate and should work the hours applicable to the day
workers. The Union's claim for a paid break should not be
conceded. Where overtime working is required such work should be
paid at the consolidated rate of pay.
Overtime hours should accrue to the workers concerned in the same
manner as they would apply to day workers.
The Court so recommends.
Division: MrMcGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD90171 RECOMMENDATION NO. LCR12903
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: KLOPMAN INTERNATIONAL LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning conditions of shift workers temporarily
transferred to day work.
BACKGROUND:
2. In May, 1980 the Company introduced denim weaving at its
Tralee plant. This necessitated some retraining of workers and
the Company agreed that workers who move from shift would suffer
no loss of earnings while temporarily working on days. In
practice this meant that shift workers retained their shift
premium while on day work. Shift workers work an average of 42
hours per week including 2 hours overtime, all breaks are paid,
and a shift premium is paid. Day workers work 40 hours per week,
Monday to Friday, with an unpaid lunch break. In 1985 the Company
implemented a major investment programme which included cost
reduction measures and rationalisation of the workforce. On 28th
June, 1985 the Company wrote to the Union regarding the
rationalisation and stated that it intended to cease the practice
of applying the consolidated rates of overtime to shift workers
transferred to temporary day work with effect from 20th September,
1985. However the Company continued to pay for meal breaks and
the consolidated rate as per the 1980 agreement. In September,
1989 the Company claimed that this had been done in error and
indicated its intention to cease such payments. The Union does
not accept that such payments were made in error and claims that
they are still payable under the 1980 agreement. No agreement was
reached at local level and the matter was referred on 2nd January,
1990 to the conciliation service of the Labour Court. A
conciliation conference was held on 13th February, 1990 at which
no agreement was referred to a full hearing of the Labour Court
which was held in Tralee on 15th May, 1990.
UNION'S ARGUMENTS:
3. 1. In 1980 the Company agreed that workers moved from shift
to days at the Company's request would suffer no loss of
earnings. In practice this meant that shift workers would
retain their existing rate, shift allowances, and paid meal
breaks. Their hours of work on days would be 8 a.m. to 4 p.m.
and overtime would be paid at the consolidated rate.
2. This agreement continued up to June, 1985 when the Company
sought to change the terms of the 1980 agreement. After
considerable discussions the Company continued to apply the
terms of the 1980 agreement and payments were made up to 1989.
The Union does not accept the Company claim that such payments
were made in error from 1985 to 1989. The Union is seeking
confirmation that the terms of the 1980 agreement are still in
place and that its interpretation of the agreement is correct.
COMPANY'S ARGUMENTS:
4. 1. It is the Company's fundamental position that a shift
worker temporarily transferred to day work is a day worker and
accordingly should be paid as such. In line with the
Company/Union Agreement an employee should suffer no loss
through this temporary transfer as it is at the Company's
request. It is the Company's belief that the payment of 42
hours at average shift premium, with the payment of 2 hours at
overtime, in respect of 40 hours worked, together with the
retention of shift holiday entitlement, ensures that a shift
worker suffers no loss in basic earnings.
2. The position in relation to the payment of meal breaks and
consolidated rate for shift workers transferring to days
changed in 1985. The Company acknowledges that between 1985
and 1989 a limited number of shift workers received such
payments in error. The Company agreed to waive any deduction
of such overpayments.
3. The Company sees no justification whereby a shift worker
assigned to days, and retaining basic earnings, should enjoy
any payment(s) above those made to permanent day workers. The
existing arrangements are also applied to other employees and
any change in these arrangements would have cost implications
for the Company. Since 1985 the Company has striven to reduce
overtime costs. Any change in existing arrangements would
increase such overtime costs and have a negative impact on
training opportunities.
RECOMMENDATION:
5. The Court having considered the oral and written submissions
of the parties considers that where a transfer is made at the
request of management the worker concerned should be paid his
shift rate and should work the hours applicable to the day
workers. The Union's claim for a paid break should not be
conceded. Where overtime working is required such work should be
paid at the consolidated rate of pay.
Overtime hours should accrue to the workers concerned in the same
manner as they would apply to day workers.
The Court so recommends.
~
Signed on behalf of the Labour Court
Tom McGrath
________________________
8th June, 1990. Deputy Chairman
A.S./J.C.