Labour Court Database __________________________________________________________________________________ File Number: CD91476 Case Number: LCR13466 Section / Act: S26(1) Parties: BLACKTHORN SHOES LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claims for the introduction of a 39 hour week and for payment of the first phase of the Programme for Economic and Social Progress (P.E.S.P.) from the expiry date of the final phase of the Programme for National Recovery (P.N.R.).
Recommendation:
8. The Court having considered the views of the parties takes the
view that the 1st phase of the Programme for Economic and Social
Progress should be implemented with effect from 15th August, 1991
(4%). The 39 hour week should be implemented as proposed by the
Company.
The parties should in discussion seek to reach agreement on (i)
payment of the P.E.S.P. arrears and (ii) payment of future phases
of the Programme. The parties in these discussions should take
account of the state of the Industry and the need of the Company
to remain competitive.
The Court so recommends.
Division: MrMcGrath Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD91476 RECOMMENDATION NO. LCR13466
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: BLACKTHORN SHOES LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claims for the introduction of a 39 hour week and for payment
of the first phase of the Programme for Economic and Social
Progress (P.E.S.P.) from the expiry date of the final phase of the
Programme for National Recovery (P.N.R.).
BACKGROUND:
2. The Company, which is based in Dundalk, manufactures footwear
employing approximately 120 people.
3. The P.N.R. expired for the workers on 31st January, 1991.
Towards the end of 1990, the Union lodged a claim for the
introduction of a 39 hour week. The Company offered to implement
the 39 hour week on the basis of a reduction of 10 minutes per
working day Monday to Thursday with 20 minutes on Fridays and with
maintenance of output levels. This was rejected by the Union who
sought a one hour earlier finish on Fridays plus compensation in
respect of loss in bonus earnings as a result of the fall in
production.
4. The matter was referred to the Labour Relations Commission on
5th December, 1990. Conciliation conferences were held on 31st
January, 7th May and 4th July, 1991. At the conciliation
conference of 7th May the Union raised the issue of payment of the
first phase of P.E.S.P. The Company responded that it would
consider the issue in September, 1991 as it was experiencing
trading difficulties.
5. Following the conciliation conference of 4th July, 1991 the
representatives of both parties agreed to take back the following
proposals for favourable consideration:-
(a) 39 hour week to be implemented by one hour finish on
Fridays with no fall in production.
(b) P.E.S.P. - 2% in pay packet on 15th August, 1991 and
2% from 1st January, 1991.
These proposals were rejected by the workers. As no agreement was
reached the Commission, with the consent of the parties, referred
the dispute to the Labour Court for investigation and
recommendation under Section 26(1)(a)(b) of the Industrial
Relations Act, 1990. A Court hearing was held in Dundalk on 8th
October, 1991.
UNION'S ARGUMENTS:
6. 1. While the Company's acceptance to implement the 39 hour
week by a one hour early finish on Fridays goes someway to
meet the Union's aspiration, it was rejected because the
workers earnings would diminish. Their pay is based on a
straight line incentive bonus scheme on which no spare
capacity exists.
2. It is contrary to I.C.T.U. guidelines for the workers to
suffer a loss of earnings as a result of the implementation of
the 39 hour week.
3. The Union recognises the current difficulties in the
footwear trade. Pay increases over the past three years have
averaged 2½% per annum. The workers are seeking the
application of the increase of the first phase of P.E.S.P. on
its due date, as they do not wish to see their position
deteriorating any further.
4. To defer payment would incur serious loss of earnings for
the workers.
COMPANY'S ARGUMENTS:
7. 1. The Irish footwear industry is currently experiencing
severe trading difficulties, with the majority of
manufacturers having contracted their operations or closed.
2. The Company is endeavouring to expand the export side of
its business. As the industry is highly labour intensive it
is imperative in the interests of both the Company and its
workforce, that costs remain stable.
3. The Company, though it could ill afford it, made the offer
on the 39 hour week and on pay in the interests of goodwill.
In view of the Company's current circumstances the Court is
asked to recommend that its offer be accepted by the workers.
RECOMMENDATION:
8. The Court having considered the views of the parties takes the
view that the 1st phase of the Programme for Economic and Social
Progress should be implemented with effect from 15th August, 1991
(4%). The 39 hour week should be implemented as proposed by the
Company.
The parties should in discussion seek to reach agreement on (i)
payment of the P.E.S.P. arrears and (ii) payment of future phases
of the Programme. The parties in these discussions should take
account of the state of the Industry and the need of the Company
to remain competitive.
The Court so recommends.
~
Signed on behalf of the Labour Court
Tom McGrath
_______________________
8th November, 1991 Deputy Chairman.
M.D./J.C.