Labour Court Database __________________________________________________________________________________ File Number: CD91325 Case Number: LCR13376 Section / Act: S26(1) Parties: LETT & CO. LTD - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning:- (a) Rates of pay and conditions (b) Overtime (c) Annual leave (d) Seniority
Recommendation:
5. The Court has considered the oral and written views of the
parties, has taken account of all of the circumstances surrounding
the dispute and as a basis for proceeding for the future and for
developing industrial relations in the interests of both parties
makes the following recommendations.
1. Rates of Pay:
That a single rate of pay apply to all staff with effect from 1st
May, 1991 as follows:-
15 £ 93.24
16 £100.00
17 £105.87
18 £112.59
19 £118.48
20 £125.20
21 £129.83.
and that all other rates be increased in accordance with the 1st
phase of the Programme for Economic and Social Progress from the
same date.
In the circumstances of this Company it is the view of the Court
that given improved trading conditions the Union after payment of
the 2nd phase of the Programme for Economic and Social Progress
shall not be precluded from making a claim for improvements in the
rates of pay applicable to the employees here concerned.
2. Overtime:
Recognising the nature of the industry concerned and the
dependancy on the supply of raw material that overtime be paid on
the following basis.
(a) Following a 39 hour week employees working Saturday be
paid T +½ for the first 4 hours worked and 2T for each
hour thereafter.
(b) Where employees are laid off during the week and 39
hours are not completed, and as a consequence landings
require Saturday working overtime to be paid at T+½ for
all hours worked.
3. Annual Leave:
With the introduction of the 1992 Annual Leave Year Annual leave
to be increased on the following basis.
1992 - 2 days
1993 - 2 days
1994 - 1 day.
4. That a seniority list apply to all employees in the employment
of the Company at the commencement of the strike, and that this
single list be applied for the purpose of recall to work in the
event of employment becoming available.
Division: MrMcGrath Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD91325 RECOMMENDATION NO. LCR13376
THE LABOUR COURT
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1) INDUSTRIAL RELATIONS ACT, 1990
PARTIES: LETT & CO. LTD
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning:-
(a) Rates of pay and conditions
(b) Overtime
(c) Annual leave
(d) Seniority
BACKGROUND:
2. 1. The Company was incorporated in 1960 and is involved in
the production and processing of prawns, mussels and whelks for
the export market. A strike on union recognition took place in
November/December 1990. The Company have been in a loss making
situation for 3 years (details supplied). The strike resulted in
the Company losing markets and the loss of raw materials, which
were taken up by competitors (details supplied).
2. The dispute before the Court was referred to the Conciliation
Service of the Labour Relations Commission. A conciliation
conference was held on 18th June, 1991. The Company offered to
implement the terms of the Programme for Economic and Social
Progress. (PESP) from 1st May, 1991. The Company also offered 20
days leave phased in over 5 years and the introduction of the "39
hour week". No agreement was reached on these issues or on the
question of overtime.
3. Under the return to work agreement, the issue of seniority was
dealt with as follows:
"A single seniority list of all employees working in the
factory will operate no later than 17th March, 1991 and the
principle of last-in first-out will apply in determining
selection for lay-off."
The Company compiled the list and presented it to the Union. The
Union contended that there was 22 names missing. There was also
some factual problems regarding entry dates on the seniority list
for 3 employees.
4. As no resolution was possible at conciliation, the dispute was
referred to the Labour Court on 21st June, 1991 for investigation
and recommendation. A Labour Court investigation took place on
27th June, 1991.
UNIONS'S ARGUMENTS:
2. 1. Rates of Pay and Conditions:
Through local negotiations and conciliation, the Company
refused to make any improvement in the pay position other than
the terms of the PESP. The Union is not prepared to negotiate
the implementation of a national agreement while levels of
basic pay are so low (details supplied). In a letter of 16th
January, 1991, the Company state that it is their intention to
implement the agreement between the Union and Celtic Seafoods.
In line with this commitment, the Union is seeking £3.80 per
hour (per 39 hour week). The Company have agreed to abolish
the differential in the male/female rates over a number of
years. This is unacceptable and these differentials should be
abolished immediately. The Union are also seeking the
lowering of the age for the application of full pay from 21 to
18 years.
2. Annual Leave:
The claim, for 20 days, is for the agreed normal in industry
generally.
3. Overtime:
Overtime payments for Saturday at time and a half for the
morning and double-time thereafter, are the rates applicable
in industry generally.
4. Seniority:
The return to work agreement provided that all workers
employed prior to November, 1990 should be placed on a single
seniority list. There is no reference to "seasonal", "casual"
or 'temporary' workers. It is the Union's contention that no
such workers were employed at the time of the strike. It is
too coincidental that the only people the Company call
"seasonal" are union members. During conciliation, the
Company proposed to pay £275 per person per season to 'buy out
the list'. This was rejected by the Union. We are now
seeking that 3 named people be placed on the Seniority list
from their date of commencement during the strike and that all
workers employed at the time of the dispute be placed on a
single seniority list.
COMPANY'S ARGUMENTS:
4. 1. RATES OF PAY AND CONDITIONS:
There is no comparison between the rates payable at the
Company and Celtic Seafoods as there are entirely different
operations and cost vary (details supplied). Celtic Seafoods
in any case had had enormous operating losses over the last 3
years. The letter of 16th January, 1991 referred only to the
procedural agreement in place at that Company. Other more
valid comparisons (details supplied) show that the Company's
rates are not out of line with those in vogue in the industry.
Despite the Company's financial difficulties (details
supplied). It is prepared to implement the terms of the PESP
which is a 4% increase in basic pay. As the difference
between the Male and Female rates is so small, the Company has
committed itself to phasing it out completely by the end of
1994. The lowering of the age for the application of full pay
from 21 to 18 years of age would place an unaffordable cost on
the Company. It would also mean that the Company would not be
able to employ younger people who work during the summer.
2. Annual Leave:
The Company is prepared to increase the annual leave
entitlements by 1 day a year staring in 1992 bring the total
up to 20 days over the next 5 years. The Company is also
prepared to implement the "39 hour week".
3. Overtime:
The Company pays time and a half for all hours worked on
Saturday. The nature of the work would make it uncompetitive
to pay double time after 12 noon (details supplied). There
are occasions when employees have to be laid off during the
week but have to work on Saturdays. The rates paid and hours
of working are the norm for the fishing industry.
4. Seniority:
It has been the practice within the Company to hire in a
number of temporary employees to cover the prawn season
(June-Dec/Jan) and for holiday relief. The Company does not
accept the right of people (list supplied) to re-employment
nor does it accept that there has been any breach of the
agreement reached in January, 1991 following the strike. All
permanent staff have been placed on a seniority list since
March, 17th and have been called back to work accordingly. In
an effort to resolve the matter the Company have offered £275
per worker per season to buy out any perceived or imaginary
rights of employment.
RECOMMENDATION:
5. The Court has considered the oral and written views of the
parties, has taken account of all of the circumstances surrounding
the dispute and as a basis for proceeding for the future and for
developing industrial relations in the interests of both parties
makes the following recommendations.
1. Rates of Pay:
That a single rate of pay apply to all staff with effect from 1st
May, 1991 as follows:-
15 £ 93.24
16 £100.00
17 £105.87
18 £112.59
19 £118.48
20 £125.20
21 £129.83.
and that all other rates be increased in accordance with the 1st
phase of the Programme for Economic and Social Progress from the
same date.
In the circumstances of this Company it is the view of the Court
that given improved trading conditions the Union after payment of
the 2nd phase of the Programme for Economic and Social Progress
shall not be precluded from making a claim for improvements in the
rates of pay applicable to the employees here concerned.
2. Overtime:
Recognising the nature of the industry concerned and the
dependancy on the supply of raw material that overtime be paid on
the following basis.
(a) Following a 39 hour week employees working Saturday be
paid T +½ for the first 4 hours worked and 2T for each
hour thereafter.
(b) Where employees are laid off during the week and 39
hours are not completed, and as a consequence landings
require Saturday working overtime to be paid at T+½ for
all hours worked.
3. Annual Leave:
With the introduction of the 1992 Annual Leave Year Annual leave
to be increased on the following basis.
1992 - 2 days
1993 - 2 days
1994 - 1 day.
4. That a seniority list apply to all employees in the employment
of the Company at the commencement of the strike, and that this
single list be applied for the purpose of recall to work in the
event of employment becoming available.
~
Signed on behalf of the Labour Court
7th August, 1991 Tom McGrath
J.F. / U.S. _______________
Deputy Chairman