Labour Court Database __________________________________________________________________________________ File Number: CD89640 Case Number: LCR12828 Section / Act: S67 Parties: DATA PACKAGING LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the introduction of a pension scheme.
Recommendation:
8. In dealing with this claim the Court was aware that
discussions on the introduction of a 39 hour week and elimination
of some tea breaks were proceeding at a different level.
Without prejudice to what might be the outcome of these talks the
Court recommends that in light of the 1987 agreement the parties
should now commence negotiations on the introduction of a pension
scheme which has been accepted in principle by the Company.
Division: Ms Owens Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD89640 RECOMMENDATION NO. LCR12828
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: DATA PACKAGING LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the introduction of a pension scheme.
BACKGROUND:
2. The Company manufactures plastic components mainly for the
computer and electronics industry and is based in Mullingar since
1981.
3. The Union first lodged a claim for the introduction of a
pension scheme in 1986 as part of the 26th wage round. The claim
is on behalf of approximately 120 workers employed as assembly
operators, moulding machine operators, materials handlers, Q.C.'s
and spray painters and chargehands. The Company outlined its
position regarding a pension scheme in the agreement covering the
26th wage round. The letter covering the agreement states:-
"Pension Scheme:
The Company accepts and supports the legitimate aspirations
of its employees in regard to a contributory pension scheme.
Therefore, it is prepared during the period of this pay round
to begin preliminary discussions on the introduction of a
pension scheme. However, no commitment can be made as to
when such a scheme would be actually implemented. The
business in which the Company operates and its own production
must be greatly improved before any consideration could be
given to concrete proposals of its implementation."
The Company and the Union met on numerous occasions to discuss the
claim. The Company is seeking increased productivity to help
offset the cost of introducing a pension scheme by a reduction in
tea-breaks. The Union contend that the issue of tea-breaks is a
separate matter and should not be linked to the introduction of a
pension scheme.
5. The matter was referred to the conciliation service of the
Labour Court on the 26th June, 1989. A conciliation conference
was held on 6th September, 1989. As no agreement was reached the
parties consented to a referral to the Labour Court for
investigation and recommendation. A Court hearing was held in
Longford on 27th February, 1990.
UNION'S ARGUMENTS:
6. 1. The Company conceded, as part of the 26th wage round
settlement, that it would negotiate the introduction of a
pension scheme. The Company already operate a pension scheme
for clerical and management staff.
2. Most other good employments operate a pension scheme and
in the local area all other manufacturing employments have
pension schemes for general workers (details supplied to
Court).
3. The longer it takes for the Company to introduce a pension
scheme the more expensive it becomes for them and for the
workers here concerned.
4. The Company is seeking a reduction in the number of
tea-breaks before introducing a pension scheme. The
tea-breaks in question are taken in the afternoon and were
initially introduced in 1984 at the Company's request. This
request arose from a Company requirement to introduce a
formalised structure to meet the personal needs of the
workers. They were introduced on an experimental basis in the
moulding area first and as they proved successful they were
introduced in other areas.
COMPANY'S ARGUMENTS:
7. 1. The Company is involved in the contract injection moulding
business which is extremely competitive, operating on high
volume and low margins. To remain in business the Company
must be extremely cost conscious at all times. Due to the
current market situation the Company has gone through an
extremely difficult period (details supplied to the Court).
As a result the Company has sought the co-operation of its
employees in seeking to offset some of the cost of a pension
scheme by reducing the number of tea-breaks during working
time. In addition to the normal lunch and tea-breaks the
employees enjoy 2 and in some cases 3 other breaks. The
Company is seeking the elimination of these extra formal
breaks as a contribution towards the cost of the pension
scheme.
2. These additional breaks are totally at variance with
industry in general and particularly the plastic injection
moulding industry where a main lunch break and one tea-break
is the norm.
3. The Company's position is that the implementation date is
conditional on agreement to reduce the number of breaks as a
means of offsetting the cost involved and secondly that it
does not commence before the expiry of the current National
Agreement which in the case of Data Packaging runs until
31.6.1991. The Court is requested to recommend that the
company is entitled to achieve a reduction in the number of
additional formal breaks as part offset of the cost of
introducing the pension scheme. In so doing it is acting in
accordance with the terms of the 1987 Agreement.
RECOMMENDATION:
8. In dealing with this claim the Court was aware that
discussions on the introduction of a 39 hour week and elimination
of some tea breaks were proceeding at a different level.
Without prejudice to what might be the outcome of these talks the
Court recommends that in light of the 1987 agreement the parties
should now commence negotiations on the introduction of a pension
scheme which has been accepted in principle by the Company.
~
Signed on behalf of the Labour Court
Evelyn Owens
__________________________
3rd May, 1990. Deputy Chairman
M.D./J.C.