Labour Court Database __________________________________________________________________________________ File Number: CD90411 Case Number: ARB901 Section / Act: S20(2) Parties: WATERFORD CRYSTAL LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION |
Issues, for binding arbitration, concerning:- (a) 39 hour week - duration before review and effect on hourly rate (b) Restoration of 2% attendance bonus (c) Pension age - Date of review under paragraph 18(i) (i) of Company document of 24th June, 1990 (d) Once-off compensation for loss of Short fortnight/Bank holiday (Bonanza) payment (clauses 24.1 and 25.3 of Company Document) (e) Compensation for reduction in total earnings resulting from loss of regular overtime (general and female sections) (
Recommendation:
The Decision in this case is too long for the Recommendation Field
of the Database. It is held in the Document Field.
Division: CHAIRMAN Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD90411 ARBITRATION NO. ARB190
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 70
PARTIES: WATERFORD CRYSTAL LIMITED
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Issues, for binding arbitration, concerning:-
(a) 39 hour week - duration before review and effect on
hourly rate
(b) Restoration of 2% attendance bonus
(c) Pension age - Date of review under paragraph 18(i) (i)
of Company document of 24th June, 1990
(d) Once-off compensation for loss of Short fortnight/Bank
holiday (Bonanza) payment (clauses 24.1 and 25.3 of
Company Document)
(e) Compensation for reduction in total earnings resulting
from loss of regular overtime (general and female
sections)
(f) Restoration of personal needs breaks (in female
section) pending implementation of performance systems.
BACKGROUND:
2. An official dispute began on the 5th April, 1990 following the
non-payment by the Company of the Saint Patrick's Day "Bonanza"
payments to 600 cutters. Discussions began at conciliation level
on the 30th May, 1990. On the 11th June the Company put a revised
cost-cutting plan to the Union (its original plan had been
rejected earlier in the year) and following two weeks of
clarifications and discussions with the different sections, the
Company put forward its final proposals in a document entitled
"Comprehensive Agreement for Profit Improvement between Waterford
Crystal Limited and the ATGWU" on the 24th June. These proposals
formed the basis of the return to work formula agreed by the
parties on the 11th July, 1990. As part of that formula it was
agreed that the six items listed above would be the subject of
binding Labour Court arbitration. The Court conducted an
investigation into these matters in Waterford on the 8th August,
1990.
*DECISION:
3. The return to work agreement finalised between the Company and
the Union during the six weeks continuous negotiations in June and
July, apart from the matters now before the Court, contained many
significant changes to previously established working conditions
and work practices. Its content demonstrates the realisation of
all concerned that the business cannot survive unless the
financial results of the past three years are reversed. Such a
turn-about requires improved overall company performance with
particular emphasis on management and marketing, on cost control
and the implementation of working methods and conditions of
employment which reflect the present environment. It is in this
broad context of survival that the Court has considered the
matters referred to it for arbitration. The Court decisions are
as follows:-
1. 39 HOUR WEEK:
Duration: The 39 hour week should be reviewed by
the parties in January, 1995 unless in
the interim, there is agreement at
National level to reduce the normal
working week below this level. If such
occurs, the matter should be discussed by
the Company and the Union in the context
of the National agreement.
Hourly Rate: The Court acknowledges the contribution
being made by the workers in the increase
in working hours from 37.50 to 39. To
maintain the hourly rate at the old rate
for any purpose however does not make
sense in industrial relations terms. The
Court recommends therefore that the new
hourly rates be based on the 39 hour
week.
2. ATTENDANCE BONUS: The Court considers the attendance Bonus
(2%) inappropriate to the present market
conditions and the financial position of
the company. The replacement of this and
the Summer/Christmas bonus by a new basic
bonus with an additional profit-related
bonus scheme is more appropriate in
existing circumstances. The Court
therefore decides that the attendance
bonus should not be restored.
3. PENSION AGE: Having considered all aspects of the
increase in pension age to 61 years, the
Court decides that this provision should
be reviewed in January, 1995. The Court
recommends that in the interim, an
in-depth examination of the health
hazards and possible preventive measures
be undertaken by the company in respect
of the work involved. The outcome of
such an examination may have significant
implications for the review.
4. ONCE-OFF The Court recognises that in the
COMPENSATION FOR historical context of compensation
LOSS OF SHORT payments in the Company, the offer of
FORTNIGHT/ #1,000 per man in respect of "Bonanza"
BANK-HOLIDAY payments could be regarded as small.
PAYMENT Having regard to the total amount
(BONANZA PAYMENT): involved (approx #690,000), the cash-flow
difficulties besetting the Company, and
the integrated nature of the overall
agreement, the Court considers that
proposed compensation is appropriate and
should be accepted. The Court does not
regard the establishment of a debt by way
of additional payment in the future to be
helpful or appropriate in the present
circumstances.
5. COMPENSATION FOR As there will be overtime working
REDUCTION IN whenever it is essential for production
TOTAL EARNINGS purposes, it is impossible to say now
RESULTING FROM what if any loss will be incurred by the
LOSS OF REGULAR claimants arising from the withdrawal of
OVERTIME previous regular overtime. In any event,
it would not be appropriate to isolate
this particular element of earnings from
the total package. Neither would it be
appropriate to consider compensation in
terms of the formula which applied in the
past.
However as an objective of the agreement
was to ameliorate the effects of cost
cutting on lower-paid staff, the Court
will review the average earnings of the
claimants for the year ending 31/12/91 to
establish the overall impact of the
withdrawal of regular overtime. The
Court will then determine, as an addendum
to this decision, whether any
compensatory payment is justified.
6. RESTORATION OF The Court decision is that the
PERSONAL NEEDS "personal needs breaks" which applied in
BREAKS PENDING the Female Section should continue until
IMPLEMENTATION OF the new performance system is
PERFORMANCE introduced.
SYSTEMS
NOTE: In the case of "reviews" under items (1)&(3) above, the
Court expects that each side will approach discussions
with an open mind having regard to circumstances at the
time. The Courts decision on review dates should not be
regarded as pre-judging the situation in anyway.
DECISION:
The Decision in this case is too long for the Recommendation Field
of the Database. It is held in the Document Field.
~
Signed on behalf of the Labour Court
--------------------
August, 1990 Kevin Heffernan
D.H./U.S. Chairman