Labour Court Database __________________________________________________________________________________ File Number: CD92633 Case Number: LCR13906 Section / Act: S26(1) Parties: DAIRYGOLD CO-OPERATIVE SOCIETY - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the implementation by the Society of the terms of Clause 3 (local bargaining) of the Programme for Economic and Social Progress (P.E.S.P.)
Recommendation:
5. In this case it seems to the Court that the Unions have
responded in a reasonable manner to the counter proposals put
forward by the Company under the terms of Clause 3 of the P.E.S.P.
particularly insofar as the issues which they have directly
rejected - the amended sick pay scheme - additional breaks in the
Butter Department in Mallow - would not of themselves result in
major benefits to the Company.
In the normal course of events the Court would take the view that
concession of the 3% provided for under Clause 3 would be
warranted but notes the concern of the Company at very recent
events - the present currency situation and the terms of the
G.A.T.T. agreement, neither issue appearing to have featured at
direct negotiations.
The Court therefore recommends that the Company concede an
adjustment of 1.50% with effect from 1st November, 1992 and that a
further 1.50% should be paid with effect from 1st May, 1993 unless
the Company can demonstrate a serious deterioration in its
circumstances at the time resulting from the above mentioned
factors.
Division: Mr O'Connell Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD92633 RECOMMENDATION NO. LCR13906
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: DAIRYGOLD CO-OPERATIVE SOCIETY
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the implementation by the Society of the
terms of Clause 3 (local bargaining) of the Programme for Economic
and Social Progress (P.E.S.P.)
BACKGROUND:
2. 1. The Society was formed through an amalgamation of the
former Ballyclough and Mitchelstown Societies. Pay and
conditions are still negotiated separately with each of the
former societies. The dispute concerns the former Ballyclough
society which employs 480 workers. The second phase of the
P.E.S.P. commenced for the workers on 1st January, 1992.
2. The Union made a claim on behalf of the workforce for the
payment of the 3% local bargaining element of the P.E.S.P.
The Co-Operative responded that it would implement the 3%
increase in 3 phases of 1% in return for the following:
1. Employees wages to be paid directly to the Bank.
2. Acceptance of an automated clocking system and the
installation of clocks where required. Clock in and be at
your place of work at the appropriate time and remain
until finishing time.
3. Sick Pay to be paid only for 2 X 3 day periods of sick
absence in any one year.
4. Staggered Teabreaks/lunch hour and shift work to operate
in areas of continuous process, and to operate to ensure
customer service in shops and stores.
5. Employee numbers to be reduced in line with the the level
of work available during the off-season.
6. Because of the availability of evening church-going
arrangements, church going on Sundays and Church Holidays
during working hours to cease.
7. Breaks other than tea-breaks to be eliminated.
8. Afternoon tea-breaks where they apply to cease.
9. Elimination of structured overtime where it applies.
10. Working hours and holiday arrangements to be discussed at
local level.
11. Reduced rates of pay for new employees in the Trading
Division.
3. The claim was referred to the Labour Relations Commission
and conciliation conferences were held on 1st July, 5th August
and 8th September, 1992. Some measure of agreement was
secured on points 1, 4, 6, 9 and 10. It was not possible to
negotiate an overall agreement and the dispute was referred to
the Labour Court on 12th October, 1992. A Labour Court
investigation took place on 25th November, 1992 in Cork (the
earliest date suitable to both parties).
UNION'S ARGUMENTS:
3. 1. The claim was first made on 29th November, 1991. The
Company is the largest of its kind in the country, processing
20% of the country's creamery product. It has no borrowings
and profits for 1991 increased by 80%. The workers have
co-operated with constant change and rationalisation over the
past 6 years without any compensation. The workers have given
increased productivity and co-operation with the introduction
of new machinery and new technology. There has been no
tangible acknowledgement of the workers' vital role in the
development of the Society. Other societies and local
companies have paid the full 3% from the earliest possible
date and have sought much less in return (details supplied).
Given the contribution of the workers to recent change and the
healthy financial position of the Company, there is no
justification in the Company seeking its list of concessions.
2. The Union has responded favourably to justified
concessions and has opposed measures aimed at worsening
negotiated conditions of employment.
1. DIRECT CREDIT TRANSFER
Agreement was reached that this would be introduced on a
voluntary basis. The Union undertook to emphasise the
benefits of the scheme.
2. CLOCKS
The Union accepts the Company's proposal subject to local
discussions in respect of areas which do not traditionally
have a clock.
3. SICK PAY
The Company is seeking to worsen the negotiated and agreed
sick pay scheme. The present agreement is similar to that
operated by most other societies. The Union has always been
willing to stamp out abuses. The Society has not notified any
abuses. The terms of Clause 3 of the P.E.S.P. were never
intended to worsen agreed conditions of employment.
4. BREAKS
There is agreement in principle to this proposal provided that
there will be local consultation.
5. OFF SEASON WORKING
A voluntary lay-off agreement is in place for the winter
months when there is a reduced level of work available. The
agreement has become less attractive in recent years (details
supplied). The Union is willing to negotiate a new voluntary
lay-off agreement.
6. CHURCH GOING ARRANGEMENTS
The Union accepts the elimination of the hour off subject to
workers being facilitated in exceptional circumstances.
7. BREAKS OTHER THAN TEA-BREAKS
The breaks for the Butter Department in Mallow are there by
agreement and are justified by the nature of the work. The
breaks do not cause any interruption of work and the workers
are not willing to have them bought out.
8. AFTERNOON TEA-BREAKS
The clerical workers involved are willing to stagger the
tea-breaks or to consider taking them at the workplace.
9. STRUCTURED OVERTIME
Agreement has been reached that this issue will be dealt with
as heretofore.
10. WORKING HOURS/HOLIDAY ARRANGEMENTS
Agreement has been reached on this issue.
11. SHOPS/STORES AND DISTRIBUTION SYSTEMS
The Union is willing to negotiate new beginner rates in the
retail area. The negotiations should also deal with the
issues of student, part-time and temporary rates and the
ratio of such workers to existing permanent workers.
SOCIETY'S ARGUMENTS:
4. 1. The Society has put forward a number of measures which
would allow it to pay the 3% provided for under Clause 3 of
the P.E.S.P. on a phased basis. The measures would only
partially meet the costs of the 3%. The Society has to deal
with a difficult financial and trading situation with an
uncertain future. The Society's turnover has dropped by #40m
in the last 3 years while payroll costs have only marginally
dropped despite a very costly redundancy programme. The
Society was profitable for the last 3 years but its profits do
not cover its costs in any year (details supplied). The
depressed situation of the industry has been aggravated
further by changes in the Common Agricultural Policy, the
General Agreement on Tariffs and Trade, currency fluctuations
and interest rates (details supplied). Recent developments
mean that the Society cannot sustain the offer already made
and concessions can only be considered on cost savings of
equal amounts.
1. DIRECT CREDIT TRANSFER
This concession is of major importance to the Society. It
would reduce the number of cheques and also reduce the
Society's bank charges.
2. CLOCKS
The Society is proposing to introduce automated clocking where
possible, to introduce clocks to new areas and the re-location
of existing clocks.
3. SICK PAY
This is an area which the Society wants to regularise. It
will allow some savings which can assist towards the payment
of the 3% increase sought.
4. BREAKS
The changes sought in this area will ensure customer
satisfaction and the optimising of sales at all time.
5. OFF SEASON WORKING
The Dairy industry is seasonal with 80% of milk received
during the months March to September. Work is not available
for all staff during the off-season. The Company is proposing
that permanent workers be laid off on a seniority basis when
their plant or job ceases to operate. This would be a
cost-saving for the Company.
6. CHURCH GOING ARRANGEMENTS
The availability of services no longer requires workers to
attend services during working hours.
7. BREAKS OTHER THAN TEA-BREAKS
The Company has offered to negotiate a buy-out of the breaks
at the Butter Department in Mallow. There are no similar
breaks in the industry.
8. AFTERNOON TEA-BREAKS
The afternoon working time is 2.00 p.m. to 5.00 p.m.
Tea-breaks during this time are inefficient and not necessary.
9. STRUCTURED OVERTIME
This applies where workers stay on for a minimum of 2 hours at
the end of a day to complete work. A change in the method of
operation means that workers may not need to stay on for the
full 2 hours.
10. WORKING HOURS/HOLIDAY ARRANGEMENTS
In regions where creameries or milk intake points operate as
shop trading centres, hours of attendance must be revised.
Holiday arrangement must be discussed and agreed at local
level taking into account seasonal and market trends.
11. SHOP/STORES AND DISTRIBUTION SYSTEM
The present rates of pay in the Company's shops/stores and the
distribution area are related to manufacturing industry rather
than to the distribution industry against which the Society is
competing. The Society's competitors have less favourable
rates of pay and conditions of employment. New rates for new
employees are sought to redress the balance.
RECOMMENDATION:
5. In this case it seems to the Court that the Unions have
responded in a reasonable manner to the counter proposals put
forward by the Company under the terms of Clause 3 of the P.E.S.P.
particularly insofar as the issues which they have directly
rejected - the amended sick pay scheme - additional breaks in the
Butter Department in Mallow - would not of themselves result in
major benefits to the Company.
In the normal course of events the Court would take the view that
concession of the 3% provided for under Clause 3 would be
warranted but notes the concern of the Company at very recent
events - the present currency situation and the terms of the
G.A.T.T. agreement, neither issue appearing to have featured at
direct negotiations.
The Court therefore recommends that the Company concede an
adjustment of 1.50% with effect from 1st November, 1992 and that a
further 1.50% should be paid with effect from 1st May, 1993 unless
the Company can demonstrate a serious deterioration in its
circumstances at the time resulting from the above mentioned
factors.
~
Signed on behalf of the Labour Court
John O'Connell
____________________
16th December, 1992. Deputy Chairman.
J.F./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Jerome Forde, Court Secretary.