Labour Court Database __________________________________________________________________________________ File Number: CD9140 Case Number: LCR13183 Section / Act: S67 Parties: GARDEUR IRELAND LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION |
Dispute concerning holiday arrangements for 1991.
Recommendation:
5. This dispute regarding holidays involves a clash between the
business needs of the Company and the expectation of a continuance
of tradition by the workers. The company position is fortified by
a very strong provision in the Company/Union agreement which
confers on the company the right to designate the annual leave
periods. This they have exercised in recent times with the
agreement of the workforce but without affecting the traditional
period.
Having regard to the agreement, previous co-operation by the
workers in relation to annual leave, business needs and
understandable reluctance to be isolated from a general tradition,
the Court recommends that the parties accept the following
compromise:-
- that for 1991 the Annual leave (summer) period be July
29th to August 9th.
(Having regard to the Bank Holiday, this will amount to
nine working days).
- that for 1992 onwards, the Union accept the right of
the Company to fix annual leave in the period
1st June - 31st August.
Division: CHAIRMAN Mr Brennan Mr Walsh
Text of Document__________________________________________________________________
CD9140 RECOMMENDATION NO. LCR13183
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: GARDEUR IRELAND LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Dispute concerning holiday arrangements for 1991.
BACKGROUND:
2. The Company is involved in the manufacture of ladies trousers
for export to the European market and employs approximately 225
workers. The Company's parent plant is located in Germany. The
Company/Union agreement provides that where possible the Company
will inform the workers in January of the dates for annual
shutdown for that year. The leave year runs from January to
December. Traditionally the Company operated a three-week
shutdown holiday period in August, however, for the last three
years there has been a two-week shutdown in both May and August.
On 21st September, 1990 the Company met with the Union and
announced its holiday plan for 1991 (see Appendix A). This
provided for 2 weeks summer holidays in the first two weeks of
June and a week's holiday at both the Easter and October holiday
weekends. On 27th September, 1990 the Union wrote to the Company
stating that it would resist any unilateral action by the Company
to impose new holiday arrangements. The Union position is that
the summer holidays must take place in the first 2 weeks in August
(or if necessary the last week in July and first week in August).
The Company's position is that due to market pressures it must
remain open from mid-June on as this is the peak season for both
production and demand. In addition, that under the the
Company/Union agreement and the Holidays (Employees) Act, 1973 the
Company has the right to schedule annual leave in accordance with
the needs of the business. Agreement could not be reached at
local level and on 19th December, 1990 the matter was referred to
the conciliation service of the Labour Court. A conciliation
conference was held on 11th January, 1991 at which no progress was
made and on 14th January, 1991 the matter was referred to the
Labour Court for investigation and recommendation. The Court
investigated the dispute on 4th February, 1991.
UNION'S ARGUMENTS:
3. 1. The Union is of the opinion that the Company must be aware
well in advance of the styles they will be producing for any
particular season and that with proper planning the workers'
holidays would not have to be changed. The least the workers
might expect is to have their holidays during the summer
period i.e. July or August. This is the traditional period
for family and friends to go on holidays together. The
average age of the workers is 19 years and the Company's
holiday plans would upset families, boy friends, girl friends,
etc.
2. The Company has a high turnover in staff numbers and is
constantly advertising in local newspapers for staff, thus
endeavouring to create an attractive image of the Company in
the local media in order to recruit personnel. There is also
a bounty offer to workers who successfully recruit trainees or
operatives to work in the Company. This image-building will
be a waste of time when it becomes known that in this Company
summer holidays does not necessarily mean holidays within the
summer season. In fact some of the workers in the Company
have already threatened to leave if the proposed holiday
arrangements for 1991 are not amended. It will be possible to
reach agreement on the other holidays proposed for 1991.
However, the workers should receive their summer holidays in
July/August and preferably the first 2 weeks of August.
COMPANY'S ARGUMENTS:
4. 1. The Company has found it necessary in the past, as it does
now, to alter the timing of its summer shutdown in response to
real business needs. The market for the Company's products is
continually changing with the summer months becoming the peak
season for orders and production, due to increasingly cautious
buying habits in the market. It has therefore become totally
unviable commercially for the Company to close after the
middle of June if it wishes to compete effectively. The
German parent company originally suggested a shutdown period
of three weeks in May. This was strongly objected to by the
Irish Company's management who gained approval for the system
now proposed. However, this was as far as the Parent Company
was prepared to go and there is now no further room for
flexibility.
2. The Company recognises the difficulties which the new
schedule may present for some of its employees. The
scheduling of the two separate weeks at the Easter and October
holiday periods coincides with school holidays over these
periods. This represents an attempt by the Company to
recognise and as far as possible minimise the possible
problems and effects of the new schedule for holidays. As
stated in the Company/Union Agreement and in the Holidays
(Employees) Act, 1973, the timing of leave is at the
discretion of the employer taking into account the business
needs of the firm. In the past the Court has upheld this
right of employers, providing the companies concerned showed
proper reasons for the rescheduling. In all the
circumstances, the annual leave for 1991 should be arranged in
the manner proposed by the Company.
RECOMMENDATION:
5. This dispute regarding holidays involves a clash between the
business needs of the Company and the expectation of a continuance
of tradition by the workers. The company position is fortified by
a very strong provision in the Company/Union agreement which
confers on the company the right to designate the annual leave
periods. This they have exercised in recent times with the
agreement of the workforce but without affecting the traditional
period.
Having regard to the agreement, previous co-operation by the
workers in relation to annual leave, business needs and
understandable reluctance to be isolated from a general tradition,
the Court recommends that the parties accept the following
compromise:-
- that for 1991 the Annual leave (summer) period be July
29th to August 9th.
(Having regard to the Bank Holiday, this will amount to
nine working days).
- that for 1992 onwards, the Union accept the right of
the Company to fix annual leave in the period
1st June - 31st August.
~
Signed on behalf of the Labour Court
Kevin Heffernan
____________________________
12th February, 1991 Chairman.
U.M./J.C.
APPENDIX A
HOLIDAY ARRANGEMENTS - 1991
New Year's Day
The factory will re-open on Wednesday 2nd January at 8.00 a.m.
St. Patrick's Day
The factory will re-open on Tuesday 19th March at 8.00 a.m.
Easter Holiday (1 Week)
The factory will close on Thursday 28th March at 3.00 p.m. and
re-open on Monday 8th April at 8.00 a.m.
Summer Holidays (2 Weeks)
The factory will close on Wednesday 29th May at 5.15 p.m. and
re-open on Monday 17th June at 8.00 a.m.
August Public Holiday
The factory will close on Friday 2nd August at 1.00 p.m. and
re-open on Tuesday, 6th August at 8.00 a.m.
October Holiday (1 Week)
The factory will close on Friday 25th October at 1.00 p.m. and
re-open on Monday 4th November at 8.00 p.m.
Christmas
The factory will close on Thursday 5th December at 5.15 p.m. and
re-open on Monday 9th December at 8.00 a.m.
The factory will close on Friday 20th December at 1.00 p.m. and
re-open on Thursday 2nd January, 1992 at 8.00 a.m.
The above Holiday Arrangements take account of the reduction in
working hours to 39 hours effective from 1st June, 1990 by way of
additional "rest day" which are incorporated in the above
schedule.