Labour Court Database __________________________________________________________________________________ File Number: CD90395 Case Number: LCR13024 Section / Act: S67 Parties: BONAVENTURE TEXTILES (IRELAND) LIMITED - and - NATIONAL UNION OF TAILORS AND GARMENT WORKERS |
Dispute concerning the implementation of a 39 hour week.
Recommendation:
8. The Court having considered the issues raised by the parties
in their oral and written submissions recommends:
(1) The hour's reduction take place on a Friday.
(2) The five minute breaks be reduced to one per day.
(3) The Company and the Union hold immediate discussions with
a view to putting in place an agreement to address
absenteeism, (particularly Friday absenteeism).
(4) Payment by cheque on Thursday to be retained pending
discussion at (3) above.
In the event of disagreement between the parties the Court shall
be prepared to assist.
Division: MrMcGrath Mr Brennan Mr Devine
Text of Document__________________________________________________________________
CD90395 RECOMMENDATION NO. LCR13024
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: BONAVENTURE TEXTILES (IRELAND) LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
NATIONAL UNION OF TAILORS AND GARMENT WORKERS
SUBJECT:
1. Dispute concerning the implementation of a 39 hour week.
BACKGROUND:
2. The Company is Hong Kong owned and was established in Ireland
in 1983. It employs 343 people at its plant in Airways Industrial
Estate, Dublin. The Company is engaged in the manufacture of
ladies cotton knits for the export market and is affiliated to the
Women's Clothing and Millinery Joint Labour Committee (J.L.C.).
3. The latest Employment Regulation Order (E.R.O.) covering the
clothing industry incorporated a clause relating to the Framework
Agreement on Working Hours. This stated:
"The provisions of the Framework Agreement on Hours of Work
which form part of the P.N.R. shall be applied to workers
covered by the Women's Clothing and Millinery J.L.C. The
weekly working hours shall be reduced by one hour per week to
39 hours per week with effect from 1st June, 1990. In the
meantime employers and trade unions to negotiate specific
details of the Framework Agreement at the level of the
Company."
4. On foot of this Agreement the parties entered into
negotiations on the introduction of a 39-hour week. The Union
sought the implementation of the 39-hour week by way of an hour
off on Friday. The Company proposed the following.
(1) The hour's reduction to take place by means of a 12
minute reduction each day Monday - Friday.
(2) The discontinuation of two five minute breaks each day
(smoke breaks).
(3) In order to reduce absenteeism levels on Fridays, payment
of cheques would change from Thursdays to Fridays.
The above proposal was rejected by the Union. Following a further
meeting at local level the Company modified its proposal to the
hour's reduction being taken on Fridays subject to the other two
conditions being met. The revised proposal was rejected by the
Union.
5. The issue was referred to the conciliation service of the
Labour Court on 15th May, 1990. A conciliation conference was
held on 2nd July, 1990. As no agreement was reached the parties
consented to a referral to the Labour Court for investigation and
recommendation. A Court hearing was held on 30th August, 1990.
UNION'S ARGUMENTS:
6. 1. It is the Union's view that by reducing the working day by
12 minutes is not the correct way to approach the issue. It
would be much better to finish at 4.00 p.m. on Fridays when
married women, who also have to run a home, could benefit by
being able to get home sooner.
2. The proposal to eliminate the smoke breaks will cause
special difficulties. The workers in question earn their
wages on a Standard Minute Value System (S.M.V.S.) which has
several components i.e. observed time plus (a) allowance for
rest and relaxation and personal needs (usually 12%) and (b)
allowances for contingencies such as thread breaks, thread
changes, needle breaks etc. usually up to 6%. In this Company
the General Minimum Time Rate (G.M.T.R.) is earned with an 81%
performance. If a person consistently does not earn her wages
(fails to meet 81% performance) she is open to discipline.
However if a person decides to work hard and turn in a
performance in excess of 81% in order to have a smoke break
the employer cannot take that incentive from her as to do so
would invalidate the point in having an incentive scheme.
3. The Union cannot accept the proposal to have wages paid on
Fridays instead of Thursday as this would inconvenience most
of the workers concerned. As finishing time would be still
after the Banks close, many workers could have difficulty
getting cheques cashed. The Company have argued that it
wishes to introduce this change in order to combat
absenteeism. The Union is willing to sit down with the
Company in order to eradicate any problems in this area.
COMPANY'S ARGUMENTS:
7. 1. The Company has been in a loss making situation for a
number of years and last year had to lay off most of its
workforce (details supplied to the Court). Since then the
Company has to compete with companies in Asian countries whose
labour costs are much lower and whose employees in most cases
work a six-day week. Under these circumstances the Company
can ill afford to reduce its working week. However, the
Company recognises its obligations both in law and in an
industrial relations context. In order to avoid accumulating
further losses and jeopardising security even more, it is
vital that the Company not only maintains present levels of
production but seeks to improve them. In order for the
Company to compete effectively it must increase its present
output from 25,000 garments per week to 40,000. The Company
does not expect the present workforce to obtain this target
and it will be recruiting extra workers. However, before it
does this the present workforce must increase its
productivity. The Company's proposal, to eliminate the two 5
minute breaks per day and change the payment of cheques to
Fridays, is the absolute minimum which the parent Company is
prepared to accept.
2. The employees already get a ten minute tea break and a
half hour lunch break. As they are working on incentive,
allowances are incorporated into the scheme for normal rest
and relaxation throughout the day which takes account of
fatigue and personal needs. The Company believes that what it
is asking for is not unreasonable in the current commercial
climate.
3. The Company, in seeking to have payment of cheques on
Fridays, is attempting to curtail the high levels of
absenteeism being experienced on Fridays (details supplied to
the Court). The Company feels that it is justified in seeking
this concession particularly when the working week is being
reduced by one hour and requirements for productive and
efficient working time are at a peak.
RECOMMENDATION:
8. The Court having considered the issues raised by the parties
in their oral and written submissions recommends:
(1) The hour's reduction take place on a Friday.
(2) The five minute breaks be reduced to one per day.
(3) The Company and the Union hold immediate discussions with
a view to putting in place an agreement to address
absenteeism, (particularly Friday absenteeism).
(4) Payment by cheque on Thursday to be retained pending
discussion at (3) above.
In the event of disagreement between the parties the Court shall
be prepared to assist.
~
Signed on behalf of the Labour Court
Tom McGrath
________________________
20th September, 1990. Deputy Chairman
M.D./J.C.