Labour Court Database __________________________________________________________________________________ File Number: CD91395 Case Number: LCR13465 Section / Act: S26(1) Parties: UNIFI TEXTURED YARNS EUROPE LIMITED - and - AMALGAMATED ENGINEERING UNION;ELECTRICAL TRADES UNION |
Claim concerning the method of implementation of a 39 hour working week.
Recommendation:
5. In view of the detailed protracted negotiations which took
place over an extended length of time the Court does not deem it
appropriate to attempt to resolve this dispute other than through
an examination of the final proposals dated the 14/8/91.
Having considered the submissions from the parties the Court
recommends that the Company's offer be accepted subject to the
restoration of the 45 minute lunch break on Fridays. The Court
accepts that the Unions have a legitimate concern as to the manner
in which the shiftmen could take time off and recommend that the
parties have immediate discussions locally taking into account the
necessity on the Company's part to be flexible in dealing with the
question.
The Court notes that the implementation of this agreement is
retrospective to 1/5/1990 and recommends that the Unions accept
that the 68 hours paid leave offered by the Company covers the
full entitlement of the claimants.
Division: Ms Owens Mr McHenry Mr Rorke
Text of Document__________________________________________________________________
CD91395 RECOMMENDATION NO. LCR13465
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: UNIFI TEXTURED YARNS EUROPE LIMITED
and
AMALGAMATED ENGINEERING UNION
ELECTRICAL TRADES UNION
SUBJECT:
1. Claim concerning the method of implementation of a 39 hour
working week.
BACKGROUND:
2. In 1989 the Company and the Unions concluded a three year
Agreement which took effect from 1st May, 1989. Provision was
made for the introduction of a 39 hour week not before 1st May,
1990. The agreement also stipulated that implementation of the
reduced working week should not increase overall labour costs by
more than 1%. The Company claims that the 1% increase applies to
the overall cost incurred by the introduction of a reduced working
week. The Unions argue that any increase in payroll cost can be
offset by an improvement in labour efficiency and production.
Discussions took place in 1990 regarding the method of
implementing the reduced working week and on 14th August, 1991 a
draft agreement was drawn up (Appendix 1). The reduction in hours
was to be achieved by way of an early finish on Friday bringing
the finishing time forward one hour from 4.15 p.m. to 3.15 p.m.
The Company proposed to reduce the lunch break on Fridays from 45
minutes to 30 minutes and to abolish the 10 minute afternoon
tea-break. The Unions rejected this proposal. The dispute was
referred to the Labour Relations Commission in February, 1991.
Conciliation conferences were held on 13th March, 17th April and
10th July, 1991 at which agreement was not reached. On 29th July,
1991 the Labour Relations Commission referred the dispute to the
Labour Court under Section 26(1) of the Industrial Relations Act,
1990. The Court investigated the dispute on 3rd October, 1991.
UNIONS' ARGUMENTS:
3. 1. The Unions put forward various proposals for a more cost
efficient operation. The Company rejected all of them on the
grounds that they were unquantifiable and were measures which
were eventually going to be implemented.
2. The proposal to reduce the lunch breaks and to abolish the
afternoon tea-break on Fridays effectively only reduces the
working week by 35 minutes and not by 1 hour as required. The
Unions have already agreed that the earlier finishing time on
Fridays will not entail overtime payment to any day worker as
the hour will be covered by the shiftman on duty.
3. As the 39 hour week is retrospective to 1st May, 1990 the
workers are entitled to paid leave in lieu of the extra hour
worked. The Unions contend that the paid leave should be at
the overtime rate.
4. The rostering of time-off for shift workers under the
draft agreement may place constraints on their flexibility.
The Company has agreed to operate flexibility in certain cases
but there is no guarantee that the arrangement will work to
satisfaction.
COMPANY'S ARGUMENTS;
4. 1. The Company's main concern is to introduce a 39 hour
working week without increasing overall labour costs by more
than 1%. The Company found the suggestions put forward by the
Unions to be unquantifiable and to date has not implemented
any of their proposals.
2. With the introduction of an earlier finishing time on
Friday there will be no necessity for an afternoon tea-break.
The need to abolish the afternoon tea-break and to shorten the
lunch break by 15 minutes arises from the Company's intention
to keep its cost increase to 1%. From the Company's viewpoint
this requirement is a cost saving factor.
3. The rostering of time-off for shift workers is necessary
to enable the Company to plan more efficiently. The Company
is willing to be flexible in certain cases but if the
supervisor and shift worker fail to agree on time-off the
roster will apply.
RECOMMENDATION:
5. In view of the detailed protracted negotiations which took
place over an extended length of time the Court does not deem it
appropriate to attempt to resolve this dispute other than through
an examination of the final proposals dated the 14/8/91.
Having considered the submissions from the parties the Court
recommends that the Company's offer be accepted subject to the
restoration of the 45 minute lunch break on Fridays. The Court
accepts that the Unions have a legitimate concern as to the manner
in which the shiftmen could take time off and recommend that the
parties have immediate discussions locally taking into account the
necessity on the Company's part to be flexible in dealing with the
question.
The Court notes that the implementation of this agreement is
retrospective to 1/5/1990 and recommends that the Unions accept
that the 68 hours paid leave offered by the Company covers the
full entitlement of the claimants.
~
Signed on behalf of the Labour Court
Evelyn Owens
___________________
1st November, 1991 Deputy Chairman.
A.O'S./J.C.
APPENDIX 1
AGREEMENT ON REDUCED WORKING HOURS BETWEEN
UNIFI TEXTURED YARNS EUROPE LIMITED,
THE AMALGAMATED ENGINEERING UNION AND
THE ELECTRICAL TRADES UNION
Clauses 3 of the statement to the current Company/Union Agreement
states as follows :-
"The Company agrees to adjust the standard working week to 39
hours not later than a date before the completion of this
agreement and not before 1st May, 1990. Discussions on an
appropriate method of implementation of this reduction in
working hours will take place, in the context of the
Programme for National Recovery, during 1990 and
implementation will take place on the basis that the parties
agree arrangements that will not increase overall labour
costs by more than 1%".
Against this background the Company and the Unions have reached
the following agreement :-
1. SHIFT WORKERS
1.1 The hour reduction per working week for shift workers will
equate to 48 hours per annum.
1.2 This 48 hours will be taken on a rostered basis as per
Appendix No 1.
1.3 In order to achieve the 1% cost target the following is
agreed :-
1.3.1 The time off, taken according to the roster referred to in
1.2, will not require overtime cover. Instead, the
requirements of the area from which the shiftman is absent
will, when necessary, be met by using other shifts or day
craftsmen already working their normal hours.
In addition if a shift employee takes a holiday on a
reduced working day, overtime cover will only be obtained
for the hours the employee was scheduled to work.
2. DAY WORKERS
2.1 The working hours for day workers will be adjusted so that
they will finish work at 3.15 p.m. on Friday instead of
4.15 p.m.
2.2 In order to achieve the 1% cost target the following is
agreed :-
2.2.1 The lunch break on Friday will be reduced to 30 minutes
from 45 minutes.
2.2.2 The afternoon tea break on Friday will be eliminated.
2.2.3 The revised working hours for day workers will now be as
follows :-
Start Morning Lunch Afternoon Finish
Mon 8.30 a.m. 10 mins 30 mins 10 mins 5.15 p.m.
Tue 8.30 a.m. 10 mins 30 mins 10 mins 5.15 p.m.
Wed 8.30 a.m. 10 mins 30 mins 10 mins 5.15 p.m.
Thu 8.30 a.m. 10 mins 30 mins 10 mins 5.15 p.m.
Fri 8.30 a.m. 10 mins 30 mins 3.15 p.m.
Total break time per week amounts to 240 minutes. This
consists of 75 minutes paid and 165 minutes unpaid time.