Labour Court Database __________________________________________________________________________________ File Number: CD90179 Case Number: LCR12922 Section / Act: S67 Parties: TURNEX LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim for a pay increase on behalf of Multi-Spindle Operators.
Recommendation:
5. The Court having fully considered all aspects of the
submissions of the parties does not find grounds for the
recommendation of the Union's claim.
Division: MrMcGrath Mr Brennan Mr Walsh
Text of Document__________________________________________________________________
CD90179 RECOMMENDATION NO. LCR12922
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: TURNEX LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim for a pay increase on behalf of Multi-Spindle Operators.
BACKGROUND:
2. The Company employs approximately 45 workers in Waterford and
is engaged in the manufacture of components for the automotive and
mining industries. The claim concerns 8 multi-spindle operators
and they operate a two-shift system - 4 on each shift. These
operators are currently on Grade IV and the Union is claiming that
they be upgraded to Grade V. The basic rate for grade IV is
#179.90 and for Grade V - #193.68. The Union contends that the
work load of the employees concerned has increased considerably in
recent years and that therefore their posts warrant a higher
grading. Management has rejected the claim. The issue could not
be resolved in local level discussions and was referred to the
conciliation service of the Labour Court on the 21st November,
1989. A conciliation conference was held on the 6th April, 1990
but no agreement was reached. The dispute was referred to the
Labour Court on the 11th April, 1990. A Court hearing was held in
Waterford on the 9th May, 1990.
UNION'S ARGUMENTS:
3. 1. The increased work load on the workers concerned is not
reflected in their rate of pay. Apart from the operation of
machines the workers have a lot of manual work to do in order
to ensure that machines run smoothly and that there are no
breakdowns which could result in a hold up in production. A
lot of the manual work which is undertaken is time-consuming.
For example one of the machines which is supposed to be
automatic, suffers constant cut-outs and must be operated
manually. There is a high cut-out rate on this particular
machine. There are also problems with other machines which
require a lot of attention.
2. The Union would point out that quality-control operators
were originally on Grade IV, the same grade as the
multi-spindle operators, and were moved on to Grade V, the
grade they were on when this particular claim was first
raised. Subsequently they moved to Grade VI because of extra
duties and paperwork they had to do within their quality-
control function, thus getting some recognition for their
increased workload, which was reflected in their upgrading
from Grade V to Grade VI. This increase put them two grades
higher than the multi-spindle operators, a gap the Union feels
is unfair especially when account is taken of the fact that at
one stage the same grade applied to multi-spindle operators
and quality control-operators.
3. The multi-spindle operators are an important part of the
production team in the Company and have been very co-operative
in carrying out their duties despite the setbacks as outlined.
Taking all the factors into consideration the Union feels that
the request for Grade V for the multi-spindle operators is not
excessive and would ask the Court to recommend in its favour.
COMPANY'S ARGUMENTS:
4. 1. The Irish operation is a subsidiary of a German parent
Company which has emphatically stated that, because of
difficulties in their own operation, and because the financial
contribution of the Irish operation has been negligible, they
are no longer prepared to give unearned financial support to
the Irish Company which must now operate on a 'stand alone'
basis. The Irish Company must cut costs and improve
efficiency as well as carefully monitoring a precarious
financial position. The Company is not prepared to jeopardise
its continuity and the jobs it provides by the award of
economically unjustified and unaffordable cost increases.
2. The Company rejects the claim that there has been any
significant increase in the workload of multi-spindle
operators. The Company can specify factors whereby the
workload has, indeed, eased. The rates of men to machine has
increased.
Where previously there were 3 men: 9 machines
there are now 4 men: 11 machines.
While there may be some increased efficiency of late this has
been a necessary across-the-board response to the difficulties
of the Company and the need to maintain competitiveness.
3. In spite of the problems facing the Company, Turnex under
its new management has sought where possible to implement
improved conditions:
- Following a Labour Court Recommendation, a Pension
Scheme was introduced in January, 1990.
- The 39 Hour Week has been introduced with effect from
April 1st 1990.
- In 1989 the Company paid an increased Christmas bonus.
In addition the Company is currently seeking the recognition
of certain quality and standards specifications which are
necessary to retain its existing business with customers such
as Ford. This has given rise to overtime work and thus given
the employees substantially increased earnings in recent times
(in the order of 15%).
RECOMMENDATION:
5. The Court having fully considered all aspects of the
submissions of the parties does not find grounds for the
recommendation of the Union's claim.
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Signed on behalf of the Labour Court
Tom McGrath
________________________
20th June, 1990. Deputy Chairman
T.O'D/J.C.