Labour Court Database __________________________________________________________________________________ File Number: CD92701 Case Number: LCR13904 Section / Act: S26(1) Parties: BEAMISH AND CRAWFORD PLC - and - S.I.P.T.U. AND CRAFT UNIONS |
Dispute concerning the implementation of Clause 3 (local bargaining) of the Programme for Economic and Social Progress.
Recommendation:
5. The Court has considered the issue of the claim made by the
Unions under Clause 3 of the P.E.S.P. and other issues which have
arisen during the course of negotiations on the claim, and in the
light of the submissions made at the hearing recommends as
follows:
(1) That all parties concerned should co-operate fully with the
Total Quality Programme.
(2) That the parties endeavour to resolve the issues set out in
Appendix 1 within a period of three months from the date of
this Recommendation, if necessary referring individual items
to the industrial relations machinery for assistance in
reaching a settlement.
(3) The Court takes the view that certain other issues raised by
the Company particularly those issues which would involve
groups of workers in potential losses, would require to be
dealt with outside the terms of Clause 3 of the P.E.S.P.
In the context of acceptance by both parties of (1) and (2) over
the Court is of the opinion that, if the Unions were to agree to
the elimination of the Mass breaks, in addition to the acceptance
of payment by cheque, automated clocking, and time keeping, these
concessions would warrant the concession in turn by the Company of
the 3% increase provided for in Clause 3. The Court so
recommends.
Division: Mr O'Connell Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD92701 RECOMMENDATION NO. LCR13904
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: BEAMISH AND CRAWFORD PLC
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
S.I.P.T.U. AND CRAFT UNIONS
SUBJECT:
1. Dispute concerning the implementation of Clause 3 (local
bargaining) of the Programme for Economic and Social Progress.
BACKGROUND:
2. 1. The Company brews and packages keg and bottle beer for the
Irish and export market. It also acts as a wholesaler for a
range of packaged beer and spirits. The Company changed
ownership in 1987.
2. The claim under Clause 3 of the P.E.S.P. concerns 263
workers represented by the Group of Unions. In the case of
craft workers the operative date of the claim is 1st October,
1991 and 1st December, 1991 in respect of other workers. No
progress was achieved locally and the dispute was referred to
the Labour Relations Commission. Conciliation conferences
were held on 6th October and 28th October, 1992.
3. At conciliation the Company sought 10 concessions from the
Unions. It also submitted a list of productivity concessions
sought from specific groups of workers (appendix 1). The
Company stated that its financial and trading position would
only allow it to concede the 3% increase where productivity
yields in excess of 3% were achieved. The Unions were
prepared to negotiate on items 1, 2, 3 and 10 in exchange for
the 3% increase. Its position on the additional productivity
concessions was that they would have to be negotiated on and
paid for separately. The concessions sought by the Company
are as follows:
1. Payment by cheque, both wages and expenses.
2. Automated clocking.
3. Total co-operation with on-going change (Total Quality
Programme and ISO 9000).
4. The elimination of beer allowances across the board.
5. The elimination of morning Mass breaks on Church
Holidays.
6. Workers on sick leave to be referred to Company referee
doctor at any time during sick leave.
7. Casual employees to be employed on a day-to-day rather
than a week-to-week basis.
8. Agreement that personal belongings and cars may be
checked as employees leave the brewery sites.
9. Higher rates of pay to apply for hours worked in areas
commanding those high rates i.e. the elimination of the
one hour for day and one day for week system.
10. A conscious effort by all employees to comply with agreed
time-keeping standards i.e. start and finish, as well as
tea breaks.
4. It was not possible to come to a negotiated solution and
the dispute was referred to the Labour Court on 17th November,
1992 under Section 26(1) of the Industrial Relations Act,
1990. A Labour Court investigation took place in Cork on 25th
November, 1992.
UNIONS' ARGUMENTS:
3. 1. In recent years the Company has undergone extensive
rationalisation coupled with a large redundancy programme.
The remaining workers are required to take on board
significant changes in work practices. The workers have given
extensive co-operation to all aspects of the Company's
operations and as a result the Company recently achieved the
ISO 9002 quality award.
2. The workforce expected that its contribution to the
Company would be recognised in the negotiations under the
local bargaining clause. The claim was submitted 14 months
ago but the Company only responded recently with its set of
proposals. The Unions are not prepared to negotiate on
productivity measures for specific areas in the context of
Clause 3 of the P.E.S.P.
3. The Unions' response to the 10 concessions sought by the
Company is that they will agree to items 1, 2, 3 and 10 in
exchange for the 3% under Clause 3 of the P.E.S.P. The
Company is not seeking to pursue item 4. The Unions' response
to the other items is as follows.
5. Morning Mass Breaks
This issue is sensitive and would meet a lot of resistance
from the workforce.
6. Company Referee Doctor
This issue implies a lack of trust. The whole workforce is
being used to tackle a problem which applies to a small number
of workers. Problems in this area should be pursued through
the disciplinary code.
7. Casual Workers
The workers see this issue as an abuse of Clause 3.
8. Security Checks
The searching of personal belongings brings into question
trust and credibility. There are legal implications and, if a
crime is suspected, the Gardai should be called.
9. Deputising Allowance
Workers must be properly rewarded for taking on higher duties.
This change could cost more to administer than it would save.
COMPANY'S ARGUMENTS:
4. 1. The ownership of the Company changed in 1987 and in 1988
it lost the Carlsberg franchise to a competitor. This was a
loss to the Company of 40% of its trading activity and it was
forced to rationalise its costs and launch other products to
survive. The Company suffered a significant loss in 1989.
Its operating profits since then have been unsatisfactory and
to date in the present financial year the Company's profits
are significantly below budget (details supplied).
2. Clause 3 of the P.E.S.P. allows for negotiations to take
full account of the implications for competitiveness, the need
for flexibility and change and the contribution made by
workers to such change. The areas of agreement with the
Unions at conciliation would produce savings of less than 1%.
To finance the 3% increase for all workers, some workers would
have to give productivity increases of more than the value of
3% as some workers would not be able to give the full 3%
required. The Unions' position in relation to co-operation
with ongoing change and with the "Total Quality Programme" is
that, if changes are required, they be paid for in addition to
the 3%.
3. The Company operates in an extremely competitive market
and must eliminate all restrictive customs and practices which
hinder development. The Company cannot sustain cost
increasing claims. The Company is prepared to concede the 3%
increase if the Unions accept the following:
(a) The Company's definition of "Total co-operation with the
Total Quality Programme".
(b) The general points submitted for negotiation (excluding
Point 4).
(c) Give an undertaking that the specific issues listed in
Appendix 1 will be resolved as soon as possible.
RECOMMENDATION:
5. The Court has considered the issue of the claim made by the
Unions under Clause 3 of the P.E.S.P. and other issues which have
arisen during the course of negotiations on the claim, and in the
light of the submissions made at the hearing recommends as
follows:
(1) That all parties concerned should co-operate fully with the
Total Quality Programme.
(2) That the parties endeavour to resolve the issues set out in
Appendix 1 within a period of three months from the date of
this Recommendation, if necessary referring individual items
to the industrial relations machinery for assistance in
reaching a settlement.
(3) The Court takes the view that certain other issues raised by
the Company particularly those issues which would involve
groups of workers in potential losses, would require to be
dealt with outside the terms of Clause 3 of the P.E.S.P.
In the context of acceptance by both parties of (1) and (2) over
the Court is of the opinion that, if the Unions were to agree to
the elimination of the Mass breaks, in addition to the acceptance
of payment by cheque, automated clocking, and time keeping, these
concessions would warrant the concession in turn by the Company of
the 3% increase provided for in Clause 3. The Court so
recommends.
~
Signed on behalf of the Labour Court
John O'Connell
___________________
21st December, 1992. Deputy Chairman.
J.F./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Jerome Forde, Court Secretary.
APPENDIX I
SPECIFICS
Distribution
One man trunking to Dublin.
Full loads of fulls i.e. 330 kegs, 520 empties and 26 pallets of
empty bottles on trunking runs.
Secondary
Total flexibility in relation to scheduling secondary runs.
Runs in line with the Sales Reps. routes, if required.
Use of contract hauliers during peak seasons.
Wholesalers
Direct deliveries from South Main Street or from the Marina to
Wholesalers, as required.
Warehouse
The elimination of the work to finish system on
Saturdays/Weekends.
Warehouse Ops. will load and unload the full loads on articulated
trucks, as required.
Dispenser Service
Agreement that contractors are employed for special events and
major installation programmes.
Increase the cleanings target to 109 per week and the area sizes
from 485 to 500 taps per man.
Man on Week-End Call (in rota) will clean lines as directed, if
there are no calls.
Introduce bleeper/radio to service vans.
When cold room overtime is paid, regular cleanings are also to be
completed.
PRODUCTION
Agreement to the total closure of the plant for one week in late
January/early February and nominated staff to take holidays at
that time.
Block A
Filter beer and attend to bulk tanks at one and the same time.
Engineering Helpers
Proposals have been conveyed and the final settlement will be
deemed to include the 3% under P.E.S.P.
Engineering Craftsmen
Proposals have already been conveyed and the final settlement will
be deemed to include the 3% under P.E.S.P.
Packaging
Total agreement to the introduction of stillage pallets.
Introduction of accumulation tables.
A can crusher will be introduced in the Ullage Dept.
Administration
Total flexibility re the introduction of the computer in all
areas.
No future claims for the introduction of further technology.
Co-operation with any new paper work/re-designed forms, as
introduced.
Agreement to contract the production and distribution of
statements and invoices.
Flexible movement of work between depts. i.e. minor account
queries to be handled at the Customer Service Centres. Customer
Service Centres to process orders prior to Credit Control
approval.
Use of temporary contract staff, when required.