Labour Court Database __________________________________________________________________________________ File Number: CD91581 Case Number: LCR13553 Section / Act: S26(1) Parties: DAWN MEATS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the application of increases under the Programme for Economic and Social Progress (P.E.S.P.) to piece rates.
Recommendation:
7. The Court having considered the oral and written submissions
of the parties recommends that the increases under the Programme
of Economic and Social Progress should be applied to the basic
rate of pay.
The Court is aware from the submissions made at the hearing that
there are issues relating to the bonus structure which should be
the subject of discussions between the parties in their own
interests.
Division: MrMcGrath Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD91581 RECOMMENDATION NO. LCR13553
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: DAWN MEATS LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the application of increases under the
Programme for Economic and Social Progress (P.E.S.P.) to piece
rates.
BACKGROUND:
2. The Company operates a beef boning plant at Carroll's Cross
Co. Waterford which employs 130 hourly paid employees. Of these
thirty-six (36) are boners. These workers are employed on a piece
rate system with a fall back rate consisting of basic pay plus an
attendance allowance.
3. The Programme for National Recovery (P.N.R.) expired in the
Company on 30th December, 1990. The Union sought a meeting in
March, 1991 to discuss the application of pay increases under
P.E.S.P. At a meeting held in April, 1991 the Company informed
the Union that it would be applying the increases to basic pay and
not piece rates. As no agreement was reached on the piece rates
issue, the matter was referred to the Labour Relations Commission
on 18th June, 1991.
4. A conciliation conference was held on 7th August, 1991. As no
agreement was reached, the Commission, with the consent of the
parties, referred the dispute to the Labour Court for
investigation and recommendation under Section 26(1)(a)(b) of the
Industrial Relations Act, 1990. A Court hearing was held on 2nd
December, 1991.
UNION'S ARGUMENTS:
5. 1. The Company's argument that the piece rates are better
than the levels applying in the industry is not acceptable.
Such work, in other circumstances, attracts bonus earnings.
This results in higher levels of pay than under the piece rate
system.
2. By not applying the first phase increase under P.E.S.P. to
the piece rate the Company is effectively proposing a wage
freeze.
3. The hourly paid operatives will at most get 13.75%
increases over 3 years under P.E.S.P. while the piece rate
workers will get nothing as it is assumed that the Company
will adopt the same position for phases 2 and 3 of the
agreement.
4. P.E.S.P. does not debar any particular group of workers
from receiving pay increases.
5. The Company has operated very profitably and this is
evidenced through the opening of a new boning hall recently.
COMPANY'S ARGUMENTS:
6. 1. The terms of P.E.S.P. set out increases to be applied to
basic rates only. The agreement provides no obligation to
apply those increases to piece rates.
2. The piece rates paid to boners are uncompetitive and any
further increases could lead to closure.
3. The level of earnings are such that the workers have
not worked overtime during 1991. They were asked on many
occasions to work overtime (details supplied to the Court).
The Company believes that if the piece rates were increased
productivity would fall as it appears that the workers want to
maintain their earnings at their present levels. This would
lead to reduced production and make the plant uncompetitive.
RECOMMENDATION:
7. The Court having considered the oral and written submissions
of the parties recommends that the increases under the Programme
of Economic and Social Progress should be applied to the basic
rate of pay.
The Court is aware from the submissions made at the hearing that
there are issues relating to the bonus structure which should be
the subject of discussions between the parties in their own
interests.
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Signed on behalf of the Labour Court
Tom McGrath
________________________
10th February, 1992 Deputy Chairman.
M.D./J.C.