Labour Court Database __________________________________________________________________________________ File Number: CD91390 Case Number: LCR13437 Section / Act: S26(1) Parties: HEITON MC FERRAN LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION |
Claim by the Union, on behalf of clerical staff, for the abolition of ceiling on the bonus scheme and retrospective payment as a result of the loss suffered due to the implementation of this scheme; the payment of bonus to employees who are absent on sick leave and the introduction of both Long Service Awards and a Christmas Bonus.
Recommendation:
5. The Court, having considered the submissions of the parties is
quite satisfied, particularly on the basis of the documents
relating to the 1981 negotiations on the scheme that an upper
limit on bonus payments was clearly understood and agreed. The
Court therefore does not recommend concession of the Union's claim
to eliminate the limit.
On the question of the loss of bonus while absent through illness
the Court does not recommend concession of this claim.
With regard to the claim for Service Awards and a Christmas Bonus
the Court does not consider it appropriate to recommend concession
of these.
Division: Mr O'Connell Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD91390 RECOMMENDATION NO. LCR13437
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: HEITON MC FERRAN LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claim by the Union, on behalf of clerical staff, for the
abolition of ceiling on the bonus scheme and retrospective payment
as a result of the loss suffered due to the implementation of this
scheme; the payment of bonus to employees who are absent on sick
leave and the introduction of both Long Service Awards and a
Christmas Bonus.
GENERAL BACKGROUND:
2. 1. The Company is a provider of building materials. In
1979/80 a Productivity Bonus Scheme was negotiated with the
Union. Under the scheme bonus payments are based on sales and
for the purpose of calculating payment a productivity index
was established. (The formula applied was "the number of
transactions per man hour"). The agreement had been in
operation until May, 1981 when it was amended at the request
of the Union. As a result of the amendment employees were
categorised under the scheme according to seniority. The
Union contends that during negotiations and discussions for
the amendment a ceiling of 43%, which applied to bonus
payments under the 1980 agreement was abolished. The Company
claim that the ceiling was not affected by the amended
agreement. The Union served a claim on the Company concerning
the abolition of the ceiling on the bonus scheme, the payment
of bonus to workers on sick leave and the introduction of both
Long Service Awards and a Christmas Bonus. The Company
rejected all the claims and the dispute was referred to the
conciliation service of the Labour Relations Commission on
25th March, 1991. A conciliation conference was held on 10th
May, 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, 1991. The Court investigated the dispute on
26th September, 1991.
UNION'S ARGUMENTS:
3. 1. Abolition of ceiling on bonus
The Company is imposing a ceiling on its employees. The
amended agreement of May, 1991 clearly indicates a change in
the original productivity index, whereby a ceiling does not
apply. By the imposition of this ceiling workers lose an
average £90 per month.
2. Payment of bonus while absent through illness
Absenteeism in the Company is very low and as such employees
should not be penalised by the non-payment of a bonus while
out sick.
3. Long Service Awards and Christmas Bonus
The Company should recognise the long service and dedication
of its employees by introducing a Long Service Award Scheme
and a Christmas Bonus Scheme. These schemes are common
practice in competitor companies.
COMPANY'S ARGUMENTS:
4. 1. Abolition ceiling on bonus
The productivity bonus scheme was agreed and introduced in
April, 1980 after lengthy discussions and negotiations with
the Union. A ceiling for bonus payments was agreed and was
not altered by the amendment of May, 1981. The percentage
earnings from the bonus scheme are very high and as
approximately 80% of the workers affected by the scheme are on
the top of the salary scale they receive the maximum level of
bonus.
2. Payment of bonus while absent through illness
No bonus is payable to workers for a day on which they are
absent from work as they cannot, in their absence, contribute
to productivity. They are however entitled to take up to
three hours leave in a day for the purpose of attending to
personal business. This leave does not affect the workers'
bonus payment.
3. Long Service Awards and Christmas Bonus
The Company, in 1990, introduced an "Employee Profit Sharing
Scheme" which takes into account the workers' service. This
scheme is based on an employee's attendance and his/her length
of service with the Company. At Christmas, despite the fact
that trading is poor, the workers receive payment of a bonus
which is the equivalent of the bonus for the period September
to November inclusive.
RECOMMENDATION:
5. The Court, having considered the submissions of the parties is
quite satisfied, particularly on the basis of the documents
relating to the 1981 negotiations on the scheme that an upper
limit on bonus payments was clearly understood and agreed. The
Court therefore does not recommend concession of the Union's claim
to eliminate the limit.
On the question of the loss of bonus while absent through illness
the Court does not recommend concession of this claim.
With regard to the claim for Service Awards and a Christmas Bonus
the Court does not consider it appropriate to recommend concession
of these.
~
Signed on behalf of the Labour Court
John O'Connell
_____________________
11th October, 1991 Deputy Chairman.
A.O'S./J.C.