Labour Court Database __________________________________________________________________________________ File Number: CD91163 Case Number: AD9141 Section / Act: S13(9) Parties: SHOWERINGS (IRELAND) LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Appeal by the Union against Rights Commissioner's Recommendation No. CW62/91 concerning a claim for compensation for loss of earnings on behalf of 3 workers employed at the Dowd's Lane Plant.
Recommendation:
5. The Court concurs with the views expressed by the Rights
Commissioner that the claim has some merit but not to the amount
claimed. The Court takes the view worker A, worker B and worker C
should be paid #1,000, #800 and #800 respectively in full and
final settlement of their claim.
Division: MrMcGrath Mr Keogh Mr Devine
Text of Document__________________________________________________________________
CD91163 APPEAL DECISION NO. AD4191
THE LABOUR COURT
INDUSTRIAL RELATIONS ACTS 1946 TO 1990
SECTION 13(9), INDUSTRIAL RELATIONS ACT 1969
PARTIES: SHOWERINGS (IRELAND) LIMITED
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Appeal by the Union against Rights Commissioner's
Recommendation No. CW62/91 concerning a claim for compensation for
loss of earnings on behalf of 3 workers employed at the Dowd's
Lane Plant.
BACKGROUND:
2. 1. The Company is involved in the processing, manufacturing
and bottling of ciders, perrys, fruit juices and soft drinks
in Clonmel. It operates the main plant at Annerville which
is on the outskirts of the town and has a compliment of about
300 workers. It also operates a crushing plant in the town
at Dowd's Lane which is the site of the original cider making
industry. During the crushing season apple juice is
extracted and stored in large vats for subsequent filtration.
Dowd's Lane has a staffing level of 4 workers but the 3
concerned with the claim are the only workers employed there
at present (due to the retirement of the 4th worker). Worker
A is a chargehand with about 10 years service while workers B
and C are general operatives with about 2 years service each.
While rates of pay and benefits are similar in both plants,
working conditions at Dowd's Lane have been traditionally
different. During the crushing season (12/13 weeks in the
year) a two shift cycle is operated. Lunch breaks of 1 hour
are staggered in order that the filtering and racking
operation is not interrupted. A further shift practice known
as the "mini-shift" operates at Dowd's Lane for about 34
weeks per year.
2. In response to demands from the local licensing
authority for 50% reduction in the discharge of processed
effluent at the Dowd's Lane plant, the Company installed a
micro-flow filtration machine which was commissioned in
January, 1991. The Company claims that the operation of the
filtration machine will eliminate the need for shift working
and is seeking to bring the existing arrangements at Dowd's
Lane (8 a.m. to 5 p.m. and 1 hour unpaid lunch) into line
with the main plant (8 a.m. to 4.30 p.m. and .50 hour unpaid
lunch). The staggering of lunch and tea breaks is on-going
within the Company. The Company offered compensation for
loss of earnings of #800 for worker A and #250 each for
worker B and C respectively. This offer was rejected by the
Union. It is claiming compensation of #5,000 for each
worker. No agreement was reached at local level discussions
and the Union referred the dispute to a Rights Commissioner.
The workers refused to operate the new filtration machine
until the Company agreed that shift premium would continue to
be paid pending a hearing by the Rights Commissioner. The
Rights Commissioner investigated the dispute on 14th
February, 1991 and issued the following recommendation on
19th February, 1991:-
"RECOMMENDATION
I recommend that the Company offers the sums of #950, #650,
#650 to worker A, worker B and worker C respectively and that
the Union accepts this as full compensation in respect of
acceptance of the Company proposals, and that if accepted by
both sides then the shift premium is paid up to the 21
February, 1991.
(The workers were named in the Rights Commissioner's
recommendation).
The Union appealed the Recommendation to the Labour Court
under Section 13(9) of the Industrial Relation Act, 1969.
The Court heard the appeal in Clonmel on 8th May, 1991.
UNION'S ARGUMENTS:
3. 1. The working conditions at Dowd's Lane have been
traditionally different from that of the main plant in order
to meet the working requirements of the plant. For over 30
years it has been practice and custom to operate two types of
shift with a 1 hour lunch break. The Union is appealing
against the Rights Commissioner's Recommendation on the basis
that the payment recommended is not sufficient compensation
for the loss that the changes proposed by the Company will
incur.
2. The proposal to reduce the lunch breaks by half an hour
is being resisted because of the estabished practice that the
workers always had the facility to go home for lunch. Staff
at Dowd's Lane do not have a full canteen facility as is the
case with Annerville.
3. The shift premium is 21% of basic pay and the loss of
shift earnings is considerable. Since shift working has been
custom and practice there is a future loss in anticipated
earnings which must also be considered. The Union's claim
for payment of #5,000 compensation for each worker is fair
and reasonable given the loss of shift earnings and changes
in working conditions.
COMPANY'S ARGUMENTS:
4. 1. The Company set out from the beginning to negotiate and
finalise the Union's claim without delay in line with
established precedence. The Company's realistic approach is
reflected in its very fair offer. The Union ignored the
agreed disputes procedures whereby normal work practice
continues to prevail un-interrupted until final resolution of
the dispute. The Company finally agreed to the payment of
shift premium upto and not beyond the Rights Commissioner's
hearing.
2. In responding to the requirements and standards set down
by the licensing authority the Company has been forced into
major costs in installing a micro-flow filtration machine.
The installation of the filtration machine means that shift
working arrangements are no longer required at Dowd's Lane.
Failure on the Company's part to meet the new regulations
would result in the revoking of the license and the closure
of the Dowd's Lane premises.
3. The reduction in the lunch break from one hour to half
an hour (unpaid) will bring the Dowd's Lane lunch break into
line with the main plant. Each worker has signed a contract
of employment denoting a half hour unpaid lunch break and
accordingly no inconvenience will be caused to the workers at
Dowd's Lane arising from the new arrangement.
4. Clear cut precedence had been established within the
Company as recent as 1990 whereby compensation due to
termination of shift working amounted to 1 x annual loss.
This same formula had been previously reinforced and
established by a Labour Court recommendation. In the
precedent case the employees affected had been on a two shift
alternating cycle for a period of 17 consecutive years.
5. The Company does not see any justification whereby
workers with relatively short service on shift working should
be compensated when it considers the precedence established
for longer serving workers. The Company maintains that its
original offer was more than fair taking the basis of change
into consideration. The Rights Commissioner's increased
offer is, in the Company's view, exceedingly generous and
should be accepted by the Union.
DECISION:
5. The Court concurs with the views expressed by the Rights
Commissioner that the claim has some merit but not to the amount
claimed. The Court takes the view worker A, worker B and worker C
should be paid #1,000, #800 and #800 respectively in full and
final settlement of their claim.
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Signed on behalf of the Labour Court
27th May, 1991 Tom McGrath
A.S. / M.O'C. _______________
Deputy Chairman