Labour Court Database __________________________________________________________________________________ File Number: CD91606 Case Number: LCR13498 Section / Act: S26(1) Parties: WATERFORD FOODS PLC (INCH AREA) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the rationalisation of bulk milk collection.
Recommendation:
5. Having considered the submissions of the parties and the
additional oral evidence presented at the hearing, the Court does
not consider that there are significant differences in the milk
collection operation in the Inch region of Waterford Foods when
compared with the operation in other regions before they were
rationalised. All regions have some peculiarities of terrain, all
are surrounded by competitors and all have some local difficulties
to overcome.
In considering the issues, the Court has had regard to the fact
that the rationalisation does not entail any redundancies, on the
contrary two part-time employees will become full-time, and to the
fact that the impact of the change will be subject to review at
the end of one year of operation. The Court has noted the Company
undertaking that the review will be specifically aimed at the
amelioration of difficulties which the rationalisation may impose
on individuals.
With regard to the reservations expressed by the Union that the
rationalisation could result in drivers having to break traffic
laws in relation to loads, speeds and driving time, the Court
considers that these are matters which can only be dealt with if
and when they actually arise. All legal requirements must of
course be met but the Company experience in the other regions
since rationalisation does not provide cause for alarm.
From the evidence presented, it seems to the Court that the data
capture and fresh milk sampling is simply an element in the ever
evolving technology of food processing. The Court notes that its
introduction will not involve any redundancy.
Having considered all the factors involved, the Court recommends
that the Union accept the new methods of milk assembly at Inch as
proposed by the Company and that it also introduce the data
capture and fresh milk sampling on the terms offered.
Division: CHAIRMAN Mr Brennan Mr Walsh
Text of Document__________________________________________________________________
CD91606 RECOMMENDATION NO. LCR13498
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACTS, 1990
PARTIES: WATERFORD FOODS PLC (INCH AREA)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the rationalisation of bulk milk
collection.
BACKGROUND:
2. 1. The Company is a branch of Waterford Foods P.L.C. and
employs 75 people in the manufacture of Yop and Yoplait
yogurt. In the bulk milk assembly area, the Company employs 5
full time drivers, 2 part-time drivers and 2 drivers on
haulage. The dispute before the Court has 2 elements:-
(a) The introduction of new methods of milk assembly in the
Inch area.
The Company is seeking to introduce new methods of milk
assembly, based on a model specifically developed for the
dairy industry. Similar schemes have been introduced in other
areas of the Company and the Inch area is the only location of
the Company where the scheme has not been introduced. The
drivers are paid on an hourly rate and the Company is seeking
to make payments on the basis of basic, plus payment for each
gallon collected. The Company have offered a 'lead in'
payment of £1,000 and to guarantee 95% of projected salary for
year 1. The Company have also offered to compensate a worker
for a projected loss in salary by an formula of 50/52 of 1
year's salary. The Union were unable to agree because of
difficulties which they had with the financial, legal and time
aspects of the scheme.
(b) The introduction of data capture and fresh milk sampling
on milk assembly trucks.
This is an advanced method of gathering and storing
information in the main computer. The system is attached to
the truck. The Company have offered a payment of £225 for its
introduction. No agreement was reached on this issue.
2. The dispute was referred to the Labour Relations
Commission on 1st February, 1991. No progress was reached at
conciliation conferences of 27th March, 6th June and 29th
July, 1991. The dispute was referred to the Labour Court on
14th November, 1991 and a Labour Court investigation took
place on 26th November, 1991 in Arklow.
COMPANY ARGUMENTS:
Bulk Milk Assembly
3. 1. Negotiations on this issue have been ongoing for a 2 year
period with no resolution. The introduction of new methods of
milk assembly into different areas of the Company began in
1988. The Inch area is the only area of the Company where the
system has not been introduced. No agreement has been reached
despite the assistance of the Labour Relations Commission and
an officer of the Irish Congress of Trade Unions who
recommended that the scheme should be introduced for one year
after which it would be reviewed by both parties. The review
after 12 months is in common with the introduction of the
scheme to all other areas of the Company. Without exception,
these reviews took place without any major problems being
encountered. There is general satisfaction with the operation
of the scheme in the Company. The scheme is also in operation
throughout the dairy industry to the benefit of all concerned.
2. Every effort has been made to allay the fears of the
workers involved with the changes. Particular regard has been
paid to the legal and safety aspects (details supplied).
Previous experience has shown that the system is capable of
changing to meet different circumstances, provided there is
good will on both sides. The Company is prepared to guarantee
95% of the projected earnings for the first year of operation.
There is agreed formula to compensate the worker who may lose
earnings as a result of the introduction of the new system.
On the introduction of the schemes, there will be a surplus of
2 part-time workers who will be offered alternative full-time
employment (details supplied). A lead in payment of £1000 is
available to the 5 drivers who will be involved with the
scheme.
Data Capture and Fresh Milk Sampling
3. This is an advanced method of gathering and storing
information in the main computer and enabling the driver to
take a representative and accurate sample of milk collected.
A more efficient service is provided to the supplier and the
need for manual imput from the driver is also eliminated. The
introduction will result in a reduction in staffing of one
worker who will be offered alternative full-time employment.
A lead in payment of £225 is available for the introduction of
the system.
UNION ARGUMENTS:
Bulk Milk Assembly
4. 1. The introduction of the system will create difficulties
and problems for the workers. The change for the workers is
from payment on an hourly basis to a flat basic week plus
gallonage payments system. The projected rates for the first
year of operation mean that one worker will lose £4,468 per
year. The Company intend to compensate for this by a once off
payment of £4,296 which is unacceptable to the Union.
2. Losses may also accrue to the workers under the new system
should the Company lose milk supplies. Earnings are dependent
on supplies and in the likely event of current suppliers
diverting milk elsewhere, earnings will be reduced. The
scheme has advantages to workers in prominent dairy areas.
The agricultural base in the Inch area is predominantly sheep.
Supplies per farm therefore tend to be smaller and the farms
are too scattered to make an incentive scheme attractive to
the workers. The terrain of the area casts doubts over a
cornerstone of the scheme which is a driving speed of 25 miles
per hour. The workers daily experience is that it is not
possible to travel at this speed from farm to farm. This will
result in runs which are much longer than the times projected
by management.
3. The new system will be impossible to operate without the
loads at some stage breaking legal limits. This could result
in a hefty fine and a possible loss of drivers' driving
licences. The Union is seeking guarantees regarding
redundancies and acceptable alternative employment positions
for any person affected by the changes. Satisfactory
introductory payments are sought and ongoing productivity
payments for their operation.
Data Capture and Fresh Milk Sampling
4. The Union has not as yet had detailed discussions with the
Company on this issue.
RECOMMENDATION:
5. Having considered the submissions of the parties and the
additional oral evidence presented at the hearing, the Court does
not consider that there are significant differences in the milk
collection operation in the Inch region of Waterford Foods when
compared with the operation in other regions before they were
rationalised. All regions have some peculiarities of terrain, all
are surrounded by competitors and all have some local difficulties
to overcome.
In considering the issues, the Court has had regard to the fact
that the rationalisation does not entail any redundancies, on the
contrary two part-time employees will become full-time, and to the
fact that the impact of the change will be subject to review at
the end of one year of operation. The Court has noted the Company
undertaking that the review will be specifically aimed at the
amelioration of difficulties which the rationalisation may impose
on individuals.
With regard to the reservations expressed by the Union that the
rationalisation could result in drivers having to break traffic
laws in relation to loads, speeds and driving time, the Court
considers that these are matters which can only be dealt with if
and when they actually arise. All legal requirements must of
course be met but the Company experience in the other regions
since rationalisation does not provide cause for alarm.
From the evidence presented, it seems to the Court that the data
capture and fresh milk sampling is simply an element in the ever
evolving technology of food processing. The Court notes that its
introduction will not involve any redundancy.
Having considered all the factors involved, the Court recommends
that the Union accept the new methods of milk assembly at Inch as
proposed by the Company and that it also introduce the data
capture and fresh milk sampling on the terms offered.
~
Signed on behalf of the Labour Court
Kevin Heffernan
___________________
16th December, 1991 Chairman.
J.F./J.C.