Labour Court Database __________________________________________________________________________________ File Number: CD91270 Case Number: LCR13344 Section / Act: S67 Parties: CLONDRA INDUSTRIES - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning:- 1. Pay Increase 2. Additional Annual Leave 3. Increased Shift Pay 4. Overtime Rates 5. 39 hour week
Recommendation:
5. The Court has considered the submissions of the parties and
having regard to background and present circumstances in the
business makes the following recommendations:-
PAY INCREASES:
The Court does not recommend concession of the Union claim but
recommends that the Company apply the first phase of the pay
arrangement of the Programme for Economic and Social Progress with
effect from 1st April, 1991.
ANNUAL LEAVE
The Court recommends that the Company grant additional
annual-leave as follows:-
P.E.S.P. Year I - 2 days
" Year II - 2 days
" Year III - 1 day.
INCREASE IN SHIFT PAY
The Court notes that agreement has been reached between the
parties on this issue.
OVERTIME RATES
The Court regards as appropriate the standard overtime rates as
paid at present. The Court understands these to be:-
T.50 for all overtime from finishing time to midnight -
Monday - Friday - and double-time after midnight.
T.50 for the first four hours on Saturday and double-time
thereafter. This arrangement to apply on Monday for staff
who work Saturday as part of the normal work.
2T On Sundays.
2T On Public Holidays plus a day-off in lieu.
Regarding early morning starts, the Court considers that the two
jobs where work demands require it and where it has become custom
and practice, a starting time of 7.00 a.m. is the normal starting
time. For other jobs, the normal starting time is 8 a.m. and
except where an earlier start/finish is mutually agreed by the
Company and the workers, any hours worked before 8 a.m. should be
at double-time.
39 HOUR WEEK
The Court notes that agreement has been reached by the parties on
the introduction of the 39 hour week.
Division: CHAIRMAN Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD91270 RECOMMENDATION NO. LCR13344
THE LABOUR COURT
INDUSTRIAL RELATIONS ACT, 1946 TO 1990
SECTION 67 INDUSTRIAL RELATIONS ACT, 1946
PARTIES: CLONDRA INDUSTRIES
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning:- 1. Pay Increase
2. Additional Annual Leave
3. Increased Shift Pay
4. Overtime Rates
5. 39 hour week
BACKGROUND:
2. 1. The Company, a member of the IAWS group operates a
fellmongering business which has been in operation since
September, 1989. The Company invested #4 million in setting up
the operation and shortly afterwards, market conditions changed
dramatically. This impacted on the price which the Company could
achieve for its product. A wool by-product was similarly
affected. There are 40 workers employed. The workforce was
organised in September, 1990 and subsequently a procedural
agreement was signed by the Company and the Union.
2. A number of items remained in contention and the Union
submitted a claim as follows:
(1) #10 per week increase from 1st October, 1990.
(2) Increase in annual leave from 15 to 20 days.
(3) Increase in shift premium for 2 cycle from 12.5% to 20%.
(4) 2T for early morning starts and after 4 hours every week.
(5) 39 hour week.
3. The claims were referred to the Conciliation Service of the
Labour Court on 9th November, 1990 and conciliation conferences
were held on 15th January, 30th January and 11th April, 1991. A
final offer was made to the Union in a letter from the Company of
19th April, 1991. The detail of which is set out below.
Pay
Discussions on payment of 1st phase of Programme for Economic
and Social Progress (P.E.S.P.) in late July, 1991 with no
commitment by Company and with Union reserving right to claim
retrospection from 1st January, 1991.
Holidays
Year 1 P.E.S.P. - 17 days
Year 2 - 18 days
Year 3 - 19 days
(Union remaining free to claim 20th day following P.E.S.P.
regardless of any future national agreement).
Shift
16.6%
O/T
T & 1/2 as standard with 2T after 1st 4 hours on Saturday and
all of Sunday. (No 2T for early morning starts with Company
arguing that employees are liable to flexible start as
condition of employment).
39 Hour Week
6 days' off per year in lieu, with O/T rate adjusted to 1/39
of weekly rate.
4. The proposals were rejected by the workforce and both sides
requested a referral to the Labour Court for investigation and
recommendation. The dispute was referred to the Labour Court on
21st May, 1991 and an investigation took place in Cavan on 25th
June, 1991. At the investigation the Union accepted the Company's
offer in relation to the claims for an increase in shift pay and
the implementation of the "39 hour week."
UNION ARGUMENTS:
3. 1. Pay
The rates of pay are out of line with a similar type Company
and two of the holding Company's other operations (details
supplied). In addition, they are below the average industrial
wage which is #260.90. The rates are in operation since May,
1990, at which time the Company stated that they would be
effective only until September, 1990. Despite this statement,
no further increases were granted. The Programme for Economic
and Social Progress (P.E.S.P.) has now been agreed nationally
and despite this, the terms have yet to be passed on to the
workers.
2. Annual Leave
The 1st and 2nd National Understandings agreed that Annual
Leave be increased to 19 days. These agreements are as
binding on employers and workers as they were when negotiated.
The vast majority of employments locally and nationally now
have 20 days annual leave (details supplied).
3. Overtime Rates
The Union are seeking time and a half payments for the first 4
hours after finishing time and double time thereafter until
normal starting time. Double time for all early morning
starts and after the first 4 hours on Saturday. Research has
shown that it was not possible to identify any other company
which did not pay double time for early morning starts. The
practice for other overtime was found to be time and a half
for the 1st 4 hours and double time thereafter in most new
manufacturing companies. Older, more traditional employments
normally paid time and a half from normal finishing time to
midnight and thereafter double time.
COMPANY'S ARGUMENTS:
4. 1. The Company was not long in existance when the recession
severely affected the market for product. The market place
difficulties have turned out to be severe and prolonged with
the Company as a result trading at a loss (details supplied).
The Company still trades because it is making a contribution
to the overheads incurred because of its initial investment.
The Company will continue to trade while this contribution is
being made. The Company feels they have conceded too much to
the Union already. The market situation has deteriorated
considerably from the time negotiations first started.
2. Pay
The Company could not afford an increase in basic pay at this
time. An enhancement of pay is being brought about through
the introduction of a bonus scheme. The rates are not out of
line with those in the locality or the industry generally.
Earnings in any case tend to be considerably above basic pay
due to the high level of overtime working. The Company has
undertaken to review the implementation of the P.E.S.P. in
August, 1991 and to inform the Union on the state of business
on an ongoing basis.
3. Annual Leave
The Company has offered to increase the level of annual leave
during the period of the P.E.S.P. The Union would not be
precluded from bringing a claim for an additional days leave
during the currency of any future programme.
4. Overtime
Present arrangements are standard within the industry. The
Company cannot afford improved terms Regarding morning
overtime. It is an integral part of the conditions of
employment that workers can be required to commence work at
different times. In addition workers might be required to
work Saturdays with Monday as an alternative rest day.
RECOMMENDATION:
5. The Court has considered the submissions of the parties and
having regard to background and present circumstances in the
business makes the following recommendations:-
PAY INCREASES:
The Court does not recommend concession of the Union claim but
recommends that the Company apply the first phase of the pay
arrangement of the Programme for Economic and Social Progress with
effect from 1st April, 1991.
ANNUAL LEAVE
The Court recommends that the Company grant additional
annual-leave as follows:-
P.E.S.P. Year I - 2 days
" Year II - 2 days
" Year III - 1 day.
INCREASE IN SHIFT PAY
The Court notes that agreement has been reached between the
parties on this issue.
OVERTIME RATES
The Court regards as appropriate the standard overtime rates as
paid at present. The Court understands these to be:-
T.50 for all overtime from finishing time to midnight -
Monday - Friday - and double-time after midnight.
T.50 for the first four hours on Saturday and double-time
thereafter. This arrangement to apply on Monday for staff
who work Saturday as part of the normal work.
2T On Sundays.
2T On Public Holidays plus a day-off in lieu.
Regarding early morning starts, the Court considers that the two
jobs where work demands require it and where it has become custom
and practice, a starting time of 7.00 a.m. is the normal starting
time. For other jobs, the normal starting time is 8 a.m. and
except where an earlier start/finish is mutually agreed by the
Company and the workers, any hours worked before 8 a.m. should be
at double-time.
39 HOUR WEEK
The Court notes that agreement has been reached by the parties on
the introduction of the 39 hour week.
~
Signed on behalf of the Labour Court
Kevin Heffernan
__________________________
12th July, 1991. Chairman
J.F./J.C.