Labour Court Database __________________________________________________________________________________ File Number: CD90108 Case Number: LCR12782 Section / Act: S67 Parties: KAYFOAM WOOLFSON LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION |
Dispute concerning the date of implementation of a 39 hour week and compensation for the payment of wages on a non-cash basis.
Recommendation:
5. The Court having considered the submissions of the parties
recommends that the issue of the reduction in the working hours be
finalised on the following basis:-
(1) That the reduction in the working week be implemented with
effect from 1st March, 1990.
(2) That the Company offer in respect of compensation for
payment by cheque or credit transfer be increased to #75 per
employee with 50% for probationers.
Division: MrMcGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD90108 RECOMMENDATION NO. LCR12782
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: KAYFOAM WOOLFSON LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
AND
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Dispute concerning the date of implementation of a 39 hour
week and compensation for the payment of wages on a non-cash
basis.
BACKGROUND:
2. The Company manufactures beds and foam products and employs
approximately 100 workers at its plant in Bluebell Industrial
Estate, Dublin 12. Negotiations on the introduction of a 39 hour
week under the Programme for National Recovery commenced at local
level last year. The Company put forward two different proposals
which were rejected by the Union and the matter was referred on
10th October, 1989 to the conciliation service of the Labour
Court. Following a conciliation conference on 30th January, 1990
and local negotiations the parties reached agreement on the
implementation of the 39 hour week except for two issues i.e. the
Union wants the date for implementation of a 39 hour week to be
the 1st January, 1990 and compensation of #150 per employee for
the payment of wages in the form of cheque or credit transfer.
The Company has offered the 1st March, 1990 and compensation of
#25 per employee. As no agreement was reached the issues were
referred on 16th February, 1990 to a full hearing of the Labour
Court which took place on 9th March, 1990. The Court issued a
recommendation by letter on 29th March, 1990.
UNION'S ARGUMENTS:
3. 1. The Union, in a letter to the Company dated 10th November,
1989, claimed the implementation date for the reduced working
week as 1st January, 1990. As negotiations have dragged on
since the middle of 1989 it is not unreasonable to seek 1st
January, 1990 as a starting date.
3. 2. The workers concerned are reluctant to change to new
Company methods of payment of wages involving cheque/credit
transfer. However, with progress in the negotiations on the
implementation of a 39 hour week an amount of #150 per worker
as compensation would be acceptable.
COMPANY'S ARGUMENTS:
4. 1. During negotiations on a reduced working week the Company
offered an implementation date of 1st March, 1990. However,
as agreement on a package was not reached by that date, the
reduction in the working week can only be implemented from the
date of agreement of a package. There is no logic or
justification in implementing the reduced working week
retrospectively. Furthermore, there has been absolutely no
precedent in this regard on settlements to date.
2. In relation to cashless pay the Company is offering
compensation of #25 per employee with 50% for probationers and
no compensation for new employees. Many Unions have agreed to
cashless pay without compensation especially in agreements
which provide for a reduction in the working week. In this
case the Company has made a very reasonable offer as a gesture
of goodwill.
3. The Company is facing considerable difficulties in the
market place. The value of its exports has been drastically
reduced due to changes in the foreign exchange rates. In the
circumstances the reduction the working week represents a very
real and significant cost to the Company.
RECOMMENDATION:
5. The Court having considered the submissions of the parties
recommends that the issue of the reduction in the working hours be
finalised on the following basis:-
(1) That the reduction in the working week be implemented with
effect from 1st March, 1990.
(2) That the Company offer in respect of compensation for
payment by cheque or credit transfer be increased to #75 per
employee with 50% for probationers.
~
Signed on behalf of the Labour Court,
Tom McGrath
___24th___May,___1990. ___________________
A. S. / M. F. Deputy Chairman