Labour Court Database __________________________________________________________________________________ File Number: CD90615 Case Number: LCR13150 Section / Act: S67 Parties: BEAMISH & CRAWFORD PLC - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;CORK NO. 2 BRANCH AND DUBLIN NO. 2 BRANCH |
SUBJECT: 1. Dispute concerning the proposed elimination of two dispenser service supervisor posts.
Recommendation:
9. Having considered the submissions from the parties the Court
is of the view that an equitable manner of dealing with the problem
is to "Red Circle" the claimants for salary purpose and that the
Company proposal as regards the claimants cars be accepted. The
Court so recommends.
Division: Ms Owens Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD90615 RECOMMENDATION NO. LCR13150
THE LABOUR COURT
INDUSTRIAL RELATIONS ACTS 1946 TO 1976
SECTION 67
PARTIES: BEAMISH & CRAWFORD PLC
(Represented by the Federation of Irish Employers)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
(Cork No. 2 Branch and Dublin No. 2 Branch)
SUBJECT:
1. Dispute concerning the proposed elimination of two dispenser
service supervisor posts.
BACKGROUND:
2. The Dispenser Service Department is an integrated part of the
overall package offered to customers who use the Company's product
and entails the cleaning, maintenance and replacement of taps and
ancillary equipment in pubs, hotels and clubs. The service is
provided on a countrywide basis.
3. The country was split into two regions; the Dublin supervisor
covered Leinster and the area north of a line drawn form Dublin to
Galway, and the Cork supervisor covered the rest of the country.
The Dublin supervisor had 16 staff working to him and he was
responsible for his own stores. The Cork supervisor had a staff of
24 including 2 back-up and a storeman.
4. In June, 1990 the Company proposed to re-organise its
dispenser service following an agreement with Tennants Ireland
whereby the Company's equipment in the North West of the country
will be serviced by Tennants staff and Tennants equipment in the
rest of the country will be serviced by the Company's staff. Under
the Company's proposed rationalisation the National Sales,
Dispenser Service and Distribution organised on a national system
will be changed to a district system. The District system involves
the setting up of 3 Districts. There will be 3 district managers
(new positions) and 5 area managers (increase of one) with the
dispenser staff reporting to these. As a consequence the two
supervisory posts of the workers concerned are being declared
redundant.
5. The Company proposes to compensate the workers for any loss
of earnings suffered to dispenser servicemens' positions and the
workers re-assigned in line with existing agreed formula and they
retain their cars until the lease expires when they will be
supplied with cars appropriate to their grades. These proposals
were rejected by the Union on the basis that there was still
sufficient work for the people concerned, that the workers would
incur considerable losses (#116 a week for the Cork supervisor and
#114 a week for the Dublin supervisor) and in the case of the Cork
area an agreement was reached a short time ago on supervisory staff
levels in the Brewery. The Union sought, whilst arguing against
the practicality of the re-organisation, the retention of the
workers' grades if the Company's proposals were implemented. This
was unacceptable to the Company.
6. The matter was referred to the conciliation service of the
Labour Court on 2 August, 1990. A conciliation conference was held
on 26 September, 1990. As no agreement was reached the parties
subsequently consented to a referral to the Labour Court for
investigation and recommendation. A Court hearing was held in Cork
on 5 December, 1990.
COMPANY'S ARGUMENTS:
7. 1. The proposed change is necessary as the Company is
showing significant losses in a very competitive industry and
must take all steps necessary to remain viable. The present
supervisory structure is inadequate and it is expected the
new structure will improve efficiency and competitiveness.
It is illogical to expect a dispenser service supervisor
located in Dublin, or in Cork, to adequately supervise the
dispenser servicemen who work in all areas south of a line
from Dublin to Galway. It is infinitely more appropriate
that these functions are carried out by area sales managers
in charge of each of the six areas.
2. Whilst the posts are being declared redundant the
workers concerned are being retained and the Company
considers that its proposals under the circumstances are fair
and reasonable. The Union's claim for the retention of the
grades of the workers concerned is totally unacceptable.
This was a practice which operated in the Company and has now
been eliminated. It gave rise to serious industrial
relations issues in the Brewery leading to several Labour
Court investigations.
3. The Company has its three districts and six areas in
place and is concerned that the final element of this
arrangement is put in place so that it can achieve its
objective of improved customer service, increasing sales
penetration and improved profitability. The Court is,
accordingly, requested to recommend that the workers
concerned accept the Company's proposals.
UNION'S ARGUMENTS:
8. 1. In December, 1989 an agreement was concluded with the
Company regarding rationalization/productivity within the
supervisors grade in the Cork based operation. This resulted
in the number of supervisors being reduced to 9 inclusive of
the worker here concerned. This agreement was dependent on a
Company commitment, sought and conceded to maintain a minimum
of 9 supervisors. (Details supplied to the Court).
2. The workers concerned, who have 20 years and 19 years
service respectively, have never had any complaints about
their work performance or ever been aware of any
dissatisfaction in Management in the manner and extent to
which they supervised the larger areas and numbers. The
Union finds the Company's proposals illogical whereby having
decided to do away with the two posts they actually increase
the Managerial grades by the appointment of 3 district
managers and one additional area manager and the five area
sales managers which assume the supervisory dispensing
responsibilities as well as the sales representatives. If
the Company considered that the supervisors had too heavy a
workload then extra supervisors should have been appointed.
3. The workers here concerned will be at a considerable
financial loss (details supplied to the Court) especially in
basic salary which is pensionable. The Company's proposal to
compensate for loss of earnings by the agreed formula (60
times the weekly loss) no way compensates the workers here
concerned for loss of wages, pension, status and other
benefits which they currently enjoy.
RECOMMENDATION:
9. Having considered the submissions from the parties the Court
is of the view that an equitable manner of dealing with the problem
is to "Red Circle" the claimants for salary purpose and that the
Company proposal as regards the claimants cars be accepted. The
Court so recommends.
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Signed on behalf of the Labour Court
15 January, 1991 Evelyn Owens
M.D. / M.O'C. ________________
Deputy Chairman