Labour Court Database __________________________________________________________________________________ File Number: CD90396 Case Number: LCR13028 Section / Act: S67 Parties: THE IRISH GLASS BOTTLE COMPANY LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim for a shorter working week.
Recommendation:
5. The Court recommends that the dispute be resolved on the
following basis:
(1) Day Workers
(a) The number of oiler/cleaners be reduced from 4 to 3 in
accordance with the Management proposals.
(b) The grace time to be retained as at present.
(c) The employees remain on the job until five minutes before
lunch or finishing time.
(2) Shiftworkers
(a) The present self cover arrangement on shift remain as at
present on the clear understanding that the workers, as
they indicated to the Court, will ensure that the
reduction in time in accordance with the framework
agreement will be taken without recourse to additional
cover/overtime being necessary.
(b) The grace time to be retained as at present.
(c) Spares and casuals be completely flexible and be trained
in all areas as proposed by the Company.
(d) Employees clock off at commencement of lunch break and on
at end of the break. In respect of (1)(c) and (2)(d)
above these arrangements not to interfere with the local
arrangements in respect of washing up after carrying out
dirty jobs
Division: MrMcGrath Mr Brennan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD90396 RECOMMENDATION NO. LCR13028
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: THE IRISH GLASS BOTTLE COMPANY LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim for a shorter working week.
BACKGROUND:
2. The claim concerns 300 workers, 70 of whom are employed on day
work Monday - Friday working a forty hour week and 230 are
employed on continuous shift work over seven days. In accordance
with the provisions of the Programme for National Recovery
(P.N.R.) the Union submitted a claim for a reduction in the
working week to 39 hours. For day workers the Union is seeking an
early finish of one hour on Friday and for shift workers
additional time off in the form of annual leave. The Company is
prepared to concede the reduced working hours in return for a
reduction in manning levels and increased productivity. Its
proposals are outlined in Appendix A. The Union has rejected the
proposals on the grounds that there has been extensive
rationalisation throughout the plant in recent years and no
further productivity is possible. Local discussions failed to
resolve the issue which was referred to the conciliation service
of the Labour Court on the 23rd April, 1990. Conciliation
conferences were held on the 10th and 31st May, 1990 but no
agreement was reached. The dispute was referred to the Labour
Court on the 10th July, 1990. A Court hearing was held on the 4th
September, 1990.
UNION'S ARGUMENTS:
3. 1. The most contentious elements in the Company's proposals
related to a proposed reduction in manning to include the
overall manning levels on shift and in the case of day workers
to reduce the numbers in the oiler/cleaner grade.
2. The Union is opposed to any further reductions in manning
levels. There were two major rationalisation programmes in
1983 and 1988 which reduced the workforce by between 250 and
300 workers. These reductions produced major increases in
productivity and profitability. A Company loss in 1984 of
#279,000 was replaced by a profit in 1989 of over #3m. The
Company's increase in profits results to a large extent from
the increased productivity which the workers concerned have
given since 1983.
3. The Union considers that the Company should respond in
turn by conceding the 39-hour week without seeking any further
concessions or changes in working conditions. The Union's
position is not unreasonable when a contrast is made between
the high increase in profits and the low basic rate increases
under the terms of the P.N.R. The concession of the 39-hour
week should not affect the Company's competitive position
vis-a-vis the U.K. where wage increases of around 10% are the
norm and a vast majority of the workforce enjoys a working
week of less than 40 hours.
4. The Union has offered to extend the present self-cover
arrangement for shift workers to cover six additional shifts
off which would be an acceptable alternative to a weekly
reduction of one hour. The Company has rejected this offer,
but the Union feels that, with proper control by Management in
the allocation of days off, the impact on costs and manning
will be minimal. In the case of day workers the Union
considers that the efficient operation of the Union/Company
agreements would have the same effect.
COMPANY'S ARGUMENTS:
4. 1. Management accepts that the contribution of the workers
concerned to the Company's viability is substantial. Other
factors have also contributed including a substantial
reduction in energy costs from #5.9m in 1982 to #2.7m in 1989.
However the gains from low energy prices can disappear
overnight. If crude oil prices remain at present levels, the
Company's energy costs next year could increase by as much as
#3m.
2. The industry has come under considerable pressure
throughout the world from competition from other packaging
materials (details supplied to the Court). The Company has
made considerable productivity gains in recent years;
nevertheless productivity is still lower than many European
competitors and further considerable gains must be made if the
Company is to survive in the open market of 1992 and beyond.
3. The workers concerned have benefited as a result of the
agreements of 1983 and 1988 and there are still considerable
benefits accruing to them. In 1988 all employees shared
one-third of the savings amounting to a 3.25% increase in pay.
In 1983 it was agreed to give all workers two days extra
leave and also that all workers would share equally in 10% of
glass operations profits subject only to the worker's share
being related to his attendance level. The payment to each
worker with 100% attendance in 1989 was #786.
4. The Company is committed to the introduction of a 39 hour
week but this must be achieved without damaging its
competitive position and with this in view Management put
forward its final position in a set of proposals (Appendix A).
5. The Union states that the present selfcover arrangement
will cater for any additional shifts off, within a 39 hour
week agreement and therefore there will be no additional cost
to the Company, Management is certain that the present
selfcover agreement cannot cope with a situation where it will
be necessary to provide cover for 25 shifts off plus sickness
absence. When the number off or out sick is more than 6 then
the Company must replace these workers at additional cost. In
relation to day workers the reduction from 40 to 39 hours
increases costs by 2.5% unless there is a corresponding
increase in productivity to make up for loss of time.
6. The Company contends that, in order to maintain its
competitive position and to compete with European producers in
the fast approaching open market, its proposals for day and
shiftworkers as outlined in Appendix A must be accepted.
RECOMMENDATION:
5. The Court recommends that the dispute be resolved on the
following basis:
(1) Day Workers
(a) The number of oiler/cleaners be reduced from 4 to 3 in
accordance with the Management proposals.
(b) The grace time to be retained as at present.
(c) The employees remain on the job until five minutes before
lunch or finishing time.
(2) Shiftworkers
(a) The present self cover arrangement on shift remain as at
present on the clear understanding that the workers, as
they indicated to the Court, will ensure that the
reduction in time in accordance with the framework
agreement will be taken without recourse to additional
cover/overtime being necessary.
(b) The grace time to be retained as at present.
(c) Spares and casuals be completely flexible and be trained
in all areas as proposed by the Company.
(d) Employees clock off at commencement of lunch break and on
at end of the break. In respect of (1)(c) and (2)(d)
above these arrangements not to interfere with the local
arrangements in respect of washing up after carrying out
dirty jobs
~
Signed on behalf of the Labour Court
Tom McGrath
_________________________
26th September, 1990. Deputy Chairman
T.O'D./J.C.
APPENDIX A
Daywork 1. The number of Oiler/Cleaner to reduce from 4 to 3,
but the person dropped from this grade to remain as
additional to the Day General Group. This ensures
no overall reduction in jobs.
2. Grace time for clocking in to be abolished and all
employees to be at work station at 8 a.m.
3. Employees to remain on job until 5 minutes before
lunch or finishing time.
4. Overtime will be paid at old rates and overtime
premium will only apply after 40 hours.
The Company in return to concede a finishing time of 4.00 p.m. on
Friday of normal working week.
Shiftwork 1. The present self cover arrangement on shift to be
extended including - Service Leave, 40 hour shifts
off, sickness up to 4 weeks, training, union
business, compassionate leave, jury service.
Replacement would have to be made for the following:
holidays (excluding service leave), sickness after 4
weeks, day work i.e. resorting, process/feedermen,
drivers (forklift or lorry) and when number drops
below 34.
2. The present agreement of 42 jobs self-covering to 36
to be altered to one where 42 jobs will self cover
to 34.
Details as follows:
PRESENT NEW
TIMEKEEPERS 1 1 1 1
CONTROLLERS 1 1 1 1
OPERATORS 15 13 15 12
QUALITY CONTROL 3 3 3 3
SORTERS 20 16 20 15
F/LIFT DRIVERS 2 2 2 2
___ ___ ___ ___
42 36 42 34
3. Present grace time for clocking-in to be abolished.
4. Spares and casuals will be completely flexible and
be trained in all areas. Training and performing of
other jobs will be solely on the basis of
suitability and employees will be directed for this
training (This will also apply to new intakes).
5. The present agreed meal break for 30 minutes to
continue and all employees will clock off at
commencement of break and back on again at end of
break.
If the foregoing can be agreed the Company would concede a further
5 shifts off.