Labour Court Database __________________________________________________________________________________ File Number: CD92462 Case Number: LCR13895 Section / Act: S26(1) Parties: IRISH BISCUITS LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION;BAKERY AND FOODWORKERS AMALGAMATED UNION;SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Improvements in sick pay scheme.
Recommendation:
5. The Court, given the strictures of the Programme for Economic
and Social Progress, and having considered the submissions of the
parties, recommends that the proposals of the Industrial Relations
Officer put forward on 28th February, 1992, be accepted and
implemented, with the proviso that the operation of the amended
sick pay scheme be reviewed at the end of a twelve month period
from the date of implementation.
The Court so recommends.
Division: MrMcGrath Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD92462 RECOMMENDATION NO. LCR13895
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: IRISH BISCUITS LIMITED
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION
BAKERY AND FOODWORKERS AMALGAMATED UNION
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Improvements in sick pay scheme.
BACKGROUND:
2. The Company manufactures and distributes a range of biscuit
products. The Company currently employs 898 workers of whom 595
are general workers. In 1990, discussions took place between the
parties in respect of an improved sick pay scheme for general
workers. The arrangement in the case of general workers has been
for the Company to pay the equivalent of the employees' P.R.S.I.
entitlements for the first 3 weeks of illness during which
P.R.S.I. payments do not apply. With the reduction in the level
of P.R.S.I. benefit in recent years, the value of the workers
entitlements has fallen significantly. The Company made the
following proposals:
"1. The scheme is based on the pay-related benefit formula of
1978 with floor and ceiling values up-dated to present
levels of #58/week and #220/week respectively.
Formula { (P.60 (Max. #11,000) :- 50) - 58 } 40%
benefit/week
The floor and ceiling levels will adjust in line with
changes to the state pay-related benefit levels.
2. The first three days of absence are excluded from
benefit.
Benefit will be paid for the first three weeks as
here-to-fore i.e. three weeks when state pay-related
benefit is not paid, additionally payment will be
maintained to a maximum of three further weeks at a rate
of 70% of the weekly rate that the payment formula
provides. The maximum number of weeks of benefit will be
12 in any calendar year.
3. Benefit will normally be calculated according to the
payment formula, if reckonable earnings under the formula
do not entitle an employee to benefit of #14 a base of
#14 benefit will apply as here-to-fore. Pro-rata
benefits will apply to part-time employees.
4. All employees who have completed two years continuous
service on January 1st are eligible for benefit and must
enter the scheme.
5. Conditions under which benefit will be paid.
a. The absence is greater than 3 days.
b. The absence is covered by Medical Certificate of
unfitness to work and the employee complies with
requests to attend the Company Medical Officer.
c. The cause of the absence is not occupational injury.
d. Absence for the purpose of maternity leave does not
apply.
6. Members contribution will continue at the present rate of
1.14% of benefit determined by the formula.
7. The Company reserves the right to review the scheme in
the light of claims experience.
I trust that this fully meets claims as set out in our
discussions and I look forward to your early acceptance of the
revised scheme and the new clocking arrangement".
In return for the proposals the Company sought acceptance by the
workers of new clocking arrangements. The Union accepted the
Company's proposals on sick pay and sought the implementation of
the improved sick pay scheme, with the issue of new clocking
arrangements to be dealt with as a separate issue. Further
discussions took place on 4th November, 1991, following which the
Company made an improved offer to include the first 3 days of sick
absence but no agreement could be reached on the new clocking
arrangements and the Unions referred the matter to the Labour
Relations Commission. A conciliation conference was held on 21st
February, 1992 with a number of issues in dispute. The Unions'
claim at conciliation was for .50 pay for a period of 12 weeks sick
absence in any one calendar year, in line with craft workers. The
Industrial Relations Officer by letter dated 28th February, 1992
proposed as follows:
"(a) the Company pusue the matter of clocking arrangements as
a separate issue,
(b) the Company's offer on sick pay so amended be accepted".
This proposal was accepted by the Company but rejected by the
Unions. The claim was referred to the Labour Court for
investigation and recommendation on 5th August, 1992. The Court
hearing took place on 3rd September, 1992.
UNIONS' ARGUMENTS:
3. 1. There is no sustainable reason why production workers
should be treated in a less favourable manner to other
workers employed by the Company. It is reasonable for the
workers concerned to expect equality in conditions,
particularly in relation to sick pay schemes.
2. Both general and craft workers have had different
conditions applied by the Company in respect of sick pay
schemes over a long period of time. When workers are absent
on sick leave the same costs accrue irrespective of the
category in which they are employed.
3. The workers concerned should be treated in a fair and
equitable manner.
COMPANY'S ARGUMENTS;
4. 1. The Unions' claim for improvement to an existing sick pay
scheme is one which the Company is not required to respond to
under the terms of the P.E.S.P.
2. The Company is prepared to be flexible and made a
comprehensive response on the basis of a fair exchange in the
form of a replacement clocking system.
3. The Company's proposal reinstates the original value of
the 1977/78 sick pay scheme and additionally adds back the
first 3 days of benefit and extends cover from 6 to 12 weeks
per annum.
4. The new clocking system makes no changes to clocking rules
or allowances.
5. The latest Union claim is not sustainable under the
P.E.S.P. on the basis of the additional costs involved.
RECOMMENDATION:
5. The Court, given the strictures of the Programme for Economic
and Social Progress, and having considered the submissions of the
parties, recommends that the proposals of the Industrial Relations
Officer put forward on 28th February, 1992, be accepted and
implemented, with the proviso that the operation of the amended
sick pay scheme be reviewed at the end of a twelve month period
from the date of implementation.
The Court so recommends.
~
Signed on behalf of the Labour Court
Tom McGrath
______________________
11th December, 1992. Deputy Chairman.
F.B./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.