Labour Court Database __________________________________________________________________________________ File Number: CD91376 Case Number: LCR13364 Section / Act: S26(1) Parties: DUFFYS GROUP OLD BAWN LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning terms and conditions of employment.
Recommendation:
3. Having considered the detailed submissions from the parties,
noting that an industrial dispute is in progress and aware that a
Joint Labour Committee will shortly be in place for this industry,
the Court recommends as follows in relation to the various items
in dispute.
(1) Rates of pay
(A) Adult rate to apply at 18 years of age and over
1st year. £2.82
2nd year. £3.06
3rd year. £3.45
4th year. £3.79
(B) Juvenile Rate - age 15 to 17
1st 6 months. £1.85
Thereafter. £2.00.
Above rates to be implemented from date of return to
work, exclusive of phase 1 of P.E.S.P.. Phase 2 of
P.E.S.P. to apply from 1st April, 1992.
(C) Trainee Manager - 10% differential on Adult Rate.
(D) Part-time staff - to be paid at appropriate hourly rate.
(2) Holidays -
(A) Full time staff 1991 - 17 days
1992 - 19 days
1993 - 21 days
All of above to include Good Friday.
(B) Part-time staff - pro-rata holidays.
(3) Overtime
First three hours worked after normal finishing time to be
paid at rate of 1½ and thereafter at double time.
Sunday Working
(A) Full-time staff - Double time
(B) Part-time staff - Normal hourly rate.
Public Holidays - Double time plus additional day's leave.
(Full time staff).
The Court considers that the above proposals should be accepted by
both parties as an equitable resolution of the present dispute.
The Court so recommends.
Division: Ms Owens Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD91376 RECOMMENDATION NO. LCR13364
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: DUFFYS GROUP OLD BAWN LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning terms and conditions of employment.
BACKGROUND:
2. The claim concerns 14 workers who are employed at the
Company's Old Bawn Branch, Tallaght, which has been in operation
for one year. The Company also has other outlets in the south
Dublin area. The Union wrote to the Company on numerous occasions
early in 1991 seeking a meeting to discuss the terms and
conditions of employment of the workers concerned. These was no
response from the Company. The Union then referred the issue to
the Labour Court and the Court in April, 1991 recommended that the
Company recognise the Union and negotiate with it (L.C.R. 13257
refers). The Company failed to respond. Following the threat of
industrial action by the Union two meetings were held between the
parties on the 4th and 11th July, 1989. On the 8th July the Union
outlined its claim in writing to the Company (details supplied to
the Court). On the 11th July, 1991 the Company wrote to the Union
setting out is position (details supplied to the Court). The
Union rejected the Company's offer and an industrial dispute took
place on the 15th July, 1991. A conciliation conference was held
on the 17th July, 1991 but no agreement was reached. Following
the conciliation conference the final position so both parties is
outlined at Appendix A. The despite was referred to the Labour
Court on the 18th July, 1991. A Court hearing was held on the
26th July, 1991. A letter recommendation issued on the 26th July,
1991.
UNION'S ARGUMENTS:
4. 1. The Company has written to the workers concerned outlining
its offer but has neglected to inform them of the Union's
reduced claims. Whilst this letter stated "it was agreed that
the Company would place existing staff on the appropriate pay
scale, depending on their experience before joining the
Company", the offer made at the conciliation conference
confirmed that they should only get the rate for the second
six month period. In this context the Union made it crystal
clear that its adult members (i.e. those over 18 years) would
not settle for less than £3.50 per hour (or £136.50 per full
week). The Company has asserted that the Union is seeking "a
rate of pay for adult and juvenile workers far in excess of
those rates paid by national companies such as Quinnsworth'.
2. Apart from the implication that the Union is a separate
entity from its members, this assertion must be examined.
Firstly the Union spoke to colleagues in INUVGATA who organise
the sales check out operators in Quinnsworth and was told what
those rates are. These are
YEAR PER HOUR PER WEEK
1. £2.82 £109.83
2. £3.06 £119.15
3. £3.45 £134.74
4. £3.79 £147.85
5. £4.02 £156.76
6. £4.48 £174.77
3. It can be seen that the Union's claim is modest in
comparison. An important factor, which seems to have been
overlooked by the Company, is that the check out staff in
Quinnsworth work only at the check out whereas the workers
concerned are expected to fill the shelves, pack and unpack,
work at the tills, and do many other tasks besides. The
Quinnsworth staff enjoy 21 days holidays per year and other
benefits.
The Company was not content to write the letter to the
members. They also issued a leaflet (10) to the public (and
sent it around the housing estate) and put up large notices
(details supplied to the Court).
4. When for example, the remark that "a small company like
ours cannot match the large Multinational operations" is
tested, it must be pointed out that this Company has many
advantages. It is the only company of its kind in the
Shopping Centre, which serves a large housing estate. If it
were in a competitive position, it could not sustain the high
prices being charged which are higher than the supermarkets
they are claiming they cannot match.
From the Union's observations before the strike, trade in this
shop is extremely brisk and the workers concerned state that
at times they are run off their feet. Add to this fact that
the Company has recently acquired an off-licence, which
undoubtedly will bring even more business, and more work for
our members.
The workers have complained to the Union about being obliged
to do things which are very dubious and the Union would insist
that they not be asked to continue these, if a settlement is
reached. Another element is that the workers should not be
subjected to personal remarks of a degrading nature. The
Union insists that this practice should not continue.
5. The composition of the staff shows that it is a very young
workforce, with five people of 17 years or less and another
three under 20 years. The rest are over 20 years. In this
regard, the rates of pay claimed are not onerous and should be
met. The Union cannot ask its adult members to accept less
than £3.50 per hour exclusive of the P.E.S.P. and it requests
the Court to endorse its final claim.
6. In relation to Annual Leave, the Union's final position is
less than it wanted to settle for, and it is less than is
accepted generally in the trade. The Union would like that
the reduction agreed in the working week should be reflected
in the number of hours required for qualification for annual
leave and public holidays, as set out in the Guidelines issued
by the I.C.T.U. on that subject in 1990. The Union looks
forward to a Recommendation which will allow the workers
concerned to return to work. Further the Union would like to
have an agreement with this Company which will promote good
relations and establish mutual trust between the parties.
This can only exist when the terms and conditions of
employment are fair and of a standard not less than those
enjoyed elsewhere in the trade, and which conform to the legal
norms.
COMPANY'S ARGUMENTS:
5. 1. In examining the Union's claims a number of important must
be considered:
(i) The store is trading at a loss and the banks are
seeking corrective action. A report from the
Company's auditors and a letter from the bank
indicate the seriousness of the Company's financial
position (details supplied to the Court).
(ii) The pay rates sought are greater than those
negotiated and paid by the major profit-making
supermarket groups, even though a comparison between
the outlets is invalid.
(iii) A new J.L.C. covering this area is soon to be
introduced.
(iv) The Company recently implemented a 10% pay increase.
(v) The existence of the P.E.S.P.
2. The Company at Conciliation proposed the following scale:
Adult Rate
Proposed Existing
First 6 months - £2.75 per hr. First 3 months - £2.50 per hr.
Next 6 months _ £3.00 " After 3 months - £2.75 "
2nd Year - £3.25 " Thereafter,
3rd Year - £3.50 " up to a max of - £3.25 "
The Company indicated that existing adult employees would, if
evidence of previous experience has provided, be granted full
recognition of same.
3. Juvenile Rates
Proposed Existing
15 - 17 Years
First 6 months - £1.85 per hr. Between £1.80 & £1.98 per hr.
Thereafter - £2.00
18 - 20 Years
£2.25 per hour No rate
The Company feels these rates are extremely generous
compared to general rates in the industry. The
introduction of these rates will be very difficult to
absorb considering the trading difficulties.
4. Overtime Rates
The existing arrangement is that all overtime is paid at
time and a half.
The Union is seeking
(A) Time + ½ for first three hours after finishing time,
thereafter double time.
(B) Double time for Sunday.
(C) Double time plus a day off on Public Holidays.
The Company at Conciliation indicated it was prepared to
concede (A) and would also concede (B) in respect of adult
full-time employees currently rostered 5 over 6, Monday to
Saturday.
Part-time juvenile employees currently work Sunday as part
of the normal arrangement.
In respect of (C), Public Holidays, the Company pays the
equivalent of double time.
5. Annual Leave
The current annual leave allowance is 15 days.
S.I.P.T.U. has sought 21 days including Good Friday.
At Conciliation the Company offered to increase annual
leave, as follows:
1991 - 17 days
1992 - 19 days
1993 - 21 days
6. Differential for Trainee Manager
The Trainee Manager currently receives £3.59 per hour.
The Union is seeking a 15% differential over the adult
rate.
At the amounts claimed this would give the trainee
manager, one of only three full-time staff, more than
trainee managers receive in the major supermarkets.
7. Implementation Date
The Company at Conciliation felt that their proposals
which would have immediate effect on acceptance and should
incorporate the first phase of P.E.S.P. with the second
phase to be implemented on 1st April, 1992.
The Union is now seeking the application of P.E.S.P. to
the above rates, retrospectively to 1st April, 1991. No
such claim was formally served on the Company.
8. The Company has proposed significant and far-reaching
improvements for all its employees. The conditions proposed
by the Company are far in excess of those of general
competitors and in many cases exceed those of the major
supermarkets. The Company is trading at a loss and coming
under pressure from its banks. The store is of the
newsagent/supermarket type with only three full-time employees
and a large core of young part-timers. It is a highly
competitive industry with narrow margins. The existing strike
will have far-reaching implications for future profitability.
The Company has responded with significant offers on all
claims. The proposals represent a comprehensive package and
the Company regrets that they were not put to the employees in
dispute.
RECOMMENDATION:
3. Having considered the detailed submissions from the parties,
noting that an industrial dispute is in progress and aware that a
Joint Labour Committee will shortly be in place for this industry,
the Court recommends as follows in relation to the various items
in dispute.
(1) Rates of pay
(A) Adult rate to apply at 18 years of age and over
1st year. £2.82
2nd year. £3.06
3rd year. £3.45
4th year. £3.79
(B) Juvenile Rate - age 15 to 17
1st 6 months. £1.85
Thereafter. £2.00.
Above rates to be implemented from date of return to
work, exclusive of phase 1 of P.E.S.P.. Phase 2 of
P.E.S.P. to apply from 1st April, 1992.
(C) Trainee Manager - 10% differential on Adult Rate.
(D) Part-time staff - to be paid at appropriate hourly rate.
(2) Holidays -
(A) Full time staff 1991 - 17 days
1992 - 19 days
1993 - 21 days
All of above to include Good Friday.
(B) Part-time staff - pro-rata holidays.
(3) Overtime
First three hours worked after normal finishing time to be
paid at rate of 1½ and thereafter at double time.
Sunday Working
(A) Full-time staff - Double time
(B) Part-time staff - Normal hourly rate.
Public Holidays - Double time plus additional day's leave.
(Full time staff).
The Court considers that the above proposals should be accepted by
both parties as an equitable resolution of the present dispute.
The Court so recommends.
~
Signed on behalf of the Labour Court
___________________________
Evelyn Owens
August, 1991 Deputy Chairman.
T.O'D./J.C.
APPENDIX A
_________________________________________________________________
Union's Claim Company Offer
_________________________________________________________________
1. PAY: 15 - 17 yrs of age 15 - 18 yrs of age
(37.5 hour/week) £1.85 per hour
£2.50 per hour (first 6 months)
£2.00 per hour
(thereafter)
Over 18 years 18 - 20 years
1. £3.50 £2.25 per hour
2. £3.70 Adult Rate
3. £4.00 £2.75 1st 6 month
The Above to be £3.00 2nd "
implemented from £3.25 Year 2
28 Jan 1991, the £3.50 Year 3
PESP to be applied
from 1st Apr. 1991
(1st phase) PESP to apply to
the above;
2nd phase to
apply from 1/4/92
No Retrospection
__________________________________________________________________
3. ANNUAL LEAVE: 18 Days 1991 17 Days in 1991
21 Days 1992 19 Days in 1992
21 Days in 1993
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4. OVERTIME: Time + half Time + half
1st 3 hours 1st 3 hours
Double time Double time
thereafter
Double time for Double time for
Sunday work Sunday Work
(all staff) (only for full
time staff)
Double time
plus day off for Flat rate for part
Public Holidays time staff
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5. TRAINEE 15% Differential 10% Differential
MANAGERESS:
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