Labour Court Database __________________________________________________________________________________ File Number: CD90459 Case Number: LCR13084 Section / Act: S67 Parties: KLOPMAN INTERNATIONAL LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the implementation of a 39 hour week.
Recommendation:
5. On the basis of the submissions made by the parties the Court
is of the opinion that having regard to the form of shift system
in operation, the level of time off available to the staff
involved, and the additional cost of increasing that time off, the
proposal by the Company should be accepted as the best alternative
in current circumstances. The Court so recommends.
Division: Mr O'Connell Mr Collins Mr Walsh
Text of Document__________________________________________________________________
CD90459 RECOMMENDATION NO. LCR13084
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: KLOPMAN INTERNATIONAL LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the implementation of a 39 hour week.
BACKGROUND:
2. The Company is involved in the production of polyester/cotton
fabrics. The claim concerns 419 general workers - 311 on 4 cycle
shift working, 47 on alternating day shift (2 cycle) and 61 day
workers. The plant is a continuous seven day operation. In
September, 1989 the Union submitted a claim to the Company for a
reduction in the working week from 40 to 39 hours as provided for
under the terms of the Programme for National Recovery (P.N.R.).
The Union stated that any agreement on the reduction in the
working week would have to involve time off (accumulated or
'floating time'). Following numerous meetings between the parties
the Company outlined its proposals which included the 'buying
back' of the 40th hour as overtime in the same manner as the 41st
and 42nd hours are currently paid. (The proposals are outlined at
Appendix A). The Union rejected the proposals and the issue was
referred to the conciliation service of the Labour Court on the
13th June, 1990. A conciliation conference was held on the 13th
July, 1990 but no agreement was reached. The dispute was referred
to the Labour Court on the 16th August, 1990. A Court hearing was
held in Tralee on the 3rd October, 1990.
UNION'S ARGUMENTS:
3. 1. The Company's proposals were rejected by the workers
concerned in a ballot vote of 354 against and 9 votes for.
The intention of the P.N.R. was to reduce working time and not
to increase overtime opportunities as the Company has
proposed. The taking of time-off has always been a major
issue in the Company and was the subject of a previous Labour
Court hearing which recommended that there should be prior
consultation between the parties for the operation of the
holidays schedule. However this practice has not worked to
the benefit of the workers concerned. The Company has
consistently maintained that holiday close-downs have to be
taken in line with the sister plant in Italy. Furthermore
there is an acceptance for a holiday shut-down during the week
of the festival of Kerry followed by a holiday closure at
Christmas. Resulting from these shut-downs the workers
concerned are left with very little holiday hours to be taken
at their own discretion. In 1990, shift workers were left
with only 12 floating hours and day workers with 16 hours,
even though in previous years workers would have up to 48
floating hours and the Company found no difficulty with this
arrangement.
2. The Company stated that they cannot concede accumulated
time-off because this would lead to additional overtime even
though there is agreement on the employment of temporary
workers during the July shut-down. The Company was able to
offer the option of deferred holidays to everyone working
during the July shut-down and in some cases this would have
added up to nearly 100 hours and the Company had no difficulty
facilitating such an arrangement.
3. Any agreement on reduced working time will have to be
common to both day and shift workers as there is a practice
within the plant that shift workers can be temporarily
transferred to day work with their condition of employment
maintained, conversely day workers can be transferred to
shift.
4. The purpose of the P.N.R. was to give more time off to
workers and not to generate overtime. The Union is convinced
that the Company can meet the Union's demand for 48 floating
hours per year, but is attempting to renege on the spirit of
the agreement.
COMPANY'S ARGUMENTS:
4. 1. The Company considers the reduction in working hours to be
among the most challenging situations facing the Tralee plant
since commencement of operations fourteen years ago. The
Company has devoted considerable time and resources to
investigating cost effective implementation measures. These
include investigating the conditions prevailing at other
continuous process operations both at home and in Europe. The
Company has carefully evaluated eleven options for
implementation ranging from the introduction of a fifth shift
operating 52 weeks annually to the concept of annual hours on
an individual employee basis.
2. The Company's evaluations were based on minimising the
cost impact given that the Company is a continuous process
labour intensive operation. Maintaining output within the
constraints of market demand. Ensuring that implementation
did not affect the Five Year Capital Investment Plan.
Maintaining employment at current levels without recourse to
overtime working. Minimising any disruption to existing work
patterns and job structures.
3. In assessing cost impact it should be noted that in
addition to the basic rate increase under the P.N.R. (2.6%)
the Company incurred a further additional labour cost of
1.75% following on the introduction of a wage pension scheme
on 1st April, 1990. It is against this background that the
Company's proposal put forward is the only one to minimise
cost impact. Notwithstanding this, the cost of implementation
is a further 3% in addition to the wage increase and the cost
of the pension scheme.
4. The Company is a continuous process operation, and is a
high volume low margin business that is labour intensive and
totally market driven. The Court has already recognised the
particular difficulties faced by similar operations (L.C.R.
12967 refers). Cost containment is the key to the Company's
future viability and it is incumbent on Management to put in
place what measures it believes meet both the requirements of
the P.N.R. as applied both to the workers and the employer.
The Company is satisfied that its proposals meet those
requirements.
RECOMMENDATION:
5. On the basis of the submissions made by the parties the Court
is of the opinion that having regard to the form of shift system
in operation, the level of time off available to the staff
involved, and the additional cost of increasing that time off, the
proposal by the Company should be accepted as the best alternative
in current circumstances. The Court so recommends.
~
Signed on behalf of the Labour Court
John O'Connell
__________________________
22nd November, 1990 Deputy Chairman.
T.O'D./J.C.
COMPANY PROPOSALS APPENDIX A
(a) that the 40th hour be 'bought back' in the same manner as the
41st and 42nd hours are currently paid. This arrangement to
apply to Shift Workers.
(b) Day workers would finish scheduled working time at 3.30 p.m.
each Friday.
In this regard a Day Worker taking 'floating' vacation hours
on a Friday would be paid 8 hours, not 7.
(c) the implementation of these arrangements would result in a
2.5% increase on the basic hourly rate of pay.
The following cost-offsetting measures would apply:
(a) improved adherence to production requirements generally;
(b) maximum cooperation to reduce current overtime working, and no
further overtime to be generated;
(c) implementation of all measures to improve product quality in
the plant, with specific reference to Weaving, as previously
detailed;
(This alludes to L.C.R. 12644 which the Union has rejected).
(d) employees shall not leave their assigned job until their
replacement has arrived or clearance has been given by
management, to ensure an effective handover;
(This is simply a reference to Clause 7(c) of the
Company/Union Agreement)
(e) adherence to the permitted canteen break times and duration,
(provided for, under Clause 7(g) of the same Agreement). To
assist in effecting this employees will clock in/out of the
canteen when the electronic Time and Attendance Recording
system is installed in the plant;