Labour Court Database __________________________________________________________________________________ File Number: CD91423 Case Number: LCR13423 Section / Act: S26(1) Parties: NESTLE (IRELAND) LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union for the introduction of a 39 hour week.
Recommendation:
5. The Court has considered the submissions made by the parties.
It is clear that the Company's counter claim to introduce direct
credit transfer system of payment is not unreasonable. However
having regard to views expressed by a majority of the workforce
the Court is of the opinion that a different approach is required.
The Court therefore recommends as follows:
(1) Implementation of the 39 hour week one week after
acceptance of the terms of this recommendation.
(2) Implementation of paymnet by credit transfer system to
workers who volunteer to change. To those workers who so
volunteer within four months of the date of issue of this
Recommendation the Company should make a once off lump
sum paymentdd of £75 and as per the terms of the
Industrial Relations Officer's proposal make a loan of
£75 payable at £2 per week available if applied for.
(3) The Company should also hold open its offer to assist in
the change over from the present system.
Finally the Court recommends that the payments system be jointly
reviewed by the Company and the Union after one year in operation
with a view to the further extension of the credit transfer
system.
Division: Mr O'Connell Mr Collins Mr Rorke
Text of Document__________________________________________________________________
CD91423 RECOMMENDATION NO. LCR13423
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: NESTLE (IRELAND) LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union for the introduction of a 39 hour week.
BACKGROUND:
2. The claim concerns process workers who are employed at the
Company's plant in Tallaght. In May, 1990 the Union sought the
introduction of a 39 hour week as provided for under the terms of
the Programme for National Recovery (P.N.R.). In July, 1990 the
Company offered to introduce a 39 hour week by way of an early
finish on Friday, with the exception of the warehouse, where it
would be Thursday. The Company also sought to change the method
of payment of wages to the workers concerned from cash to credit
transfer and offered, in addition, a once off payment of £50 to
each worker. The Union rejected the offer. The issue was
referred to the Conciliation Service of the Labour Relations
Commission on the 23rd January, 1991. Conciliation conferences
were held on the 22nd March and 17th May, 1991 but no agreement
was reached. The dispute was referred to the Labour Court by the
Labour Relations Commission on the 9th April, 1991. A Court
hearing was held on the 5th September, 1991.
UNION'S ARGUMENTS:
3. 1. Under the terms of the P.N.R. the Union is justified in
seeking the introduction of a 39 hour week on behalf of the
workers concerned. The workers have accepted modest wage
increases on the basis that they would receive benefit from a
reduction in the working week by one hour. Many thousands of
workers have obtained the benefits of a 39 hour week without
having to make concessions in return. It is unreasonable on
the part of the Company to link the Union's claim for a 39
hour week to the payment of wages by credit transfer. This
proposition has been the subject of four separate secret
ballots by the workers concerned and it has been rejected on
each occasion. .
2. The Union accepts that workers on an individual basis may
wish to opt for the credit transfer payment system. Workers
who have a deep rooted objection to this system should be
allowd to remain on cash payments. The Company's argument
that it requires all employees to change to a credit transfer
system is not sustainable. The Union's claim is on behalf of
permanent and temporary staff whose normal working week is 40
hours. There are many employees in the Company whose normal
working week is 35 hours. Such employees are not part of the
claim. If the Court were to recommend in favour of the
Company's proposal the workers who are on a 35 hour week could
not be compelled to change to the credit transfer system.
3. Many of the workers concerned have long service with the
Company and during all of this time have received their wages
in cash. They believe they have a right to continue with this
system of payment. They are entitled to have the benefit of a
39 hour week without linking it to the credit transfer system.
COMPANY'S ARGUMENTS:
4. 1. The Company originally sought to link the introduction of
a 39 hour week with a proposal to improve productivity. This
was rejected by the Union. Following the conciliation
conference which was held on the 22nd March, 1991 a set of
proposals emerged from the Industrial Relations Officer in a
letter dated 26th March, 1991. The proposals were recommended
for acceptance by both parties. Details are as follows:
(i) Implementation of the 39 hour week within one week
of acceptance of these proposals.
(ii) Implementation of the payment by credit transfer
system not later than 3 months after the date of
acceptance of the rationalisation agreement. In
return the Company will make a once off lump sum
payment of £60 (nett) to the workers' concerned
(this payment to coincide with the introduction of
the credit transfer system). A loan of £75,
repayable at £2 per week, will also be available.
(iii) The Company will assist those who have difficulties
with the change over to the credit transfer system.
2. The Company has two factories operating in Dublin
(Inchicore and Tallaght). In the Inchicore factory payment of
wages is made by way of direct credit transfer. There is a
very strong security case for introducing this system in the
Tallaght plant.
RECOMMENDATION:
5. The Court has considered the submissions made by the parties.
It is clear that the Company's counter claim to introduce direct
credit transfer system of payment is not unreasonable. However
having regard to views expressed by a majority of the workforce
the Court is of the opinion that a different approach is required.
The Court therefore recommends as follows:
(1) Implementation of the 39 hour week one week after
acceptance of the terms of this recommendation.
(2) Implementation of paymnet by credit transfer system to
workers who volunteer to change. To those workers who so
volunteer within four months of the date of issue of this
Recommendation the Company should make a once off lump
sum paymentdd of £75 and as per the terms of the
Industrial Relations Officer's proposal make a loan of
£75 payable at £2 per week available if applied for.
(3) The Company should also hold open its offer to assist in
the change over from the present system.
Finally the Court recommends that the payments system be jointly
reviewed by the Company and the Union after one year in operation
with a view to the further extension of the credit transfer
system.
~
Signed on behalf of the Labour Court
John O'Connell
___________________
2nd October, 1991. Deputy Chairman
T.O'D./J.C.