Labour Court Database __________________________________________________________________________________ File Number: CD91623 Case Number: LCR13563 Section / Act: S26(1) Parties: NENAGH CO-OPERATIVE SOCIETY LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the implementation of a 39 hour week.
Recommendation:
5. The Court has carefully studied the submissions made by the
parties and is of the opinion that the Management's proposals are
clearly more advantageous to the workers concerned both in the
long term and the short term, and therefore recommends that they
be accepted in final settlement of the claim.
Division: Mr O'Connell Mr Keogh Mr Devine
Text of Document__________________________________________________________________
CD91623 RECOMMENDATION NO. LCR13563
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: NENAGH CO-OPERATIVE SOCIETY LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the implementation of a 39 hour week.
BACKGROUND;
2. The dispute concerns approximately 80 workers. Meetings were
held between the Company and Union in 1990 and 1991 in relation to
the introduction of a 39 hour week as provided for under the
Programme for National Recovery (P.N.R.). As no agreement was
reached the issue was referred to the Labour Relations Commission
on the 22nd August, 1991. Conciliation conferences were held on
the 13th, 27th September, and 11th October, 1991. Following the
final conciliation conference the Company put forward a set of
proposals for a reduction in working time and revised payments
system (Appendix A refers). These proposals were rejected
following a ballot by the Union membership. The dispute was
referred to the Labour Court by the Labour Relations Commission on
the 5th November, 1991. The Court investigated the dispute in
Nenagh on the 28th January, 1992.
UNION'S ARGUMENTS:
3. 1. The Company's proposals provide that the employees
concerned who work on Sundays would in future be paid at
double time rate instead of two elevenths which has applied as
per the Company/Union agreement since 1974. The Union rejects
the Company's statement that the 1974 Agreement no longer
applies or that it should be amended to change the method of
payment for Sunday working. The Union's proposal for a 38
hour week and for a £1,500 payment to each worker was rejected
by Management. The Company's proposal for a notional 38 hour
week and for a £1,000 payment to workers being paid two
elevenths for Sunday working was rejected by the Union. The
Union contends that the Company must implement the 39 hour
week to workers who are entitled to it. Alternatively an
accumulation of the hours should be taken as annual leave and
the status quo, which has applied since 1974 will remain, i.e.
workers being paid two elevenths for Sunday working will
remain on this rate.
COMPANY'S ARGUMENTS;
4. 1. There are problems in relation to implementing a reduction
in the working week insofar as there are different patterns of
working time among the workforce, in terms of the Society's
operations, and in terms of seasonability. The main area of
difficulty concerns a group of approximately 30 workers whose
normal working arrangements are as follows:
(1) The working week is regarded as a 40 hours for the
purpose of calculating hourly overtime rates etc.
(2) Between Monday to Saturday, over the entire year, these
employees work 38 hours per week on average.
(3) On Sundays, between April and September, the first four
hours worked are counted as normal working time and a
special premium of two elevenths of a week's pay is paid
for each Sunday worked.
(4) Any other Sunday work is regarded as overtime and paid at
double time.
The original intention behind the Sunday arrangements at (3)
above was to bring the annual average weekly hours of work to
40, made up of 38 at (2) above, plus 2 hours per week deriving
from the 26 Sundays at 4 hours per Sunday, 104 hours per year.
However the practice over the years has been that the number
of Sundays worked has fallen short of the maximum 26. In
1990, the Sundays worked varied from 2 to 26, with an average
of 16. In 1991 the average was 17. Any worker working less
than the full 26 Sundays does not work a 40 hour week. In
fact, a worker working less than 13 Sundays works less than a
39 hour week. A number of other employees in the Society work
alongside the 30 workers mentioned above and do not have any
such arrangements and are paid overtime for all Sunday
working, including any worked during the 6 months at (3)
above.
2. The Company has tried to eliminate these historical
anomalies and to standardise, as far as possible, working
arrangements across the Society. The Company has been seeking
agreement from the Union for a new system, which would involve
a working week arranging 38 hours over the year Monday to
Saturday, with all Sunday work being regarded as overtime and
paid at double time (details of the current and amended system
supplied to the Court). The Company's proposals dated 15th
October, 1991 address all these issues and are both a fair and
reasonable solution to the problems outlined. The Society is
prepared to address the concerns of the Union in relation to
the number of Sundays worked in the coming year. The Society
is agreeable to an annual review of the new scheme under the
chairmanship of an Industrial Relations Officer. The Society
has also offered to pay a once-off lump sum of £1,000 to the
affected workers. Management asks the Court to endorse the
Company's proposals as outlined to the Union in the letter
dated 15th October, 1991.
RECOMMENDATION:
5. The Court has carefully studied the submissions made by the
parties and is of the opinion that the Management's proposals are
clearly more advantageous to the workers concerned both in the
long term and the short term, and therefore recommends that they
be accepted in final settlement of the claim.
~
Signed on behalf of the Labour Court
John O'Connell
_____________________
20th February, 1992. Deputy Chairman
T.O'D./J.C.
APPENDIX A
Our Ref: MJR/JH
Mr. William Boland 15th October, 1991
Acting Branch Secretary
S.I.P.T.U.
Banba Square
Nenagh
Co. Tipperary.
Re: Implementation of 39 Hour Week at Nenagh
Co-Operative Society Limited
Dear Mr. Boland,
Further to our Conciliation Conferences of 13 September, 27
September and 11 October, 1991 at the above named Society, I write
to confirm the Society's position.
1. Non-shift Workers
(a) In the months March to September all non-shift workers
will work 8.30 a.m. to 5.30 p.m. In the months October
to February all non-shift workers will work 9.00 a.m. to
5.00 p.m.
(b) Employees who currently receive two elevenths for Sunday
working will for the future be paid at a rate of double
time for a minimum of 4 hours per Sunday worked. At the
conclusion of the summer season these employees will
receive payments for two additional Sundays in lieu of
summer leave.
In the event of such an employee working three or more
Sundays less than the average number of Sundays worked by
him over the summer seasons (i.e. 1 April to 30
September) 1989, 1990 and 1991, he may claim compensation
in an annual review to take place at the end of each
summer season under the chairmanship of an Industrial
Relations Officer.
(c) The working week will still be based upon five days
working per week rostered over six (6) days (Monday to
Saturday).
(d) For employees changing from the two elevenths method for
Sunday payment to the new format, the Society is prepared
to pay a once-off lump sum of £1,000.
2. Shift Workers
(a) The Society would propose that those working the 3 cycle
shift will accrue one (1) hour per week in the period
that the 3 cycle shift is in operation.
(b) This accrued time will be taken at a later stage in units
of eight (8) hours by agreement with the Manager of the
Department concerned.
(c) Accrued time is worked time and therefore attendance at
work for a full week entitles an employee to accrue one
hour for that particular week only.
(d) For the months when 2 cycle shifts arrangements are
worked at the Society, Management would propose reducing
the working week by one (1) hour.
3. The operative date for this proposal is 1st October, 1990.
The divisor for the purposes of calculating hourly rates will
be changed from 40 to 39 from that date; as a consequence, all
hourly rates will be increased by 2.56% from that date.
4. All arrears due will be paid to employees as soon as possible
after agreement is reached. These arrears consist of :
(a) for non-shift workers currently receiving two-elevenths
for Sunday working, payment at time plus one half for one
(1) hour for each week worked since 1st October, 1990,
plus a sum equal to 2.56% of the overtime earned since
1st October, 1990; or, alternatively, a payment of £400
will apply in lieu of arrears in this case.
(b) for other non-shift workers (i.e. those whose current
working week is less than 40 hours), a sum equal to 2.56%
of the overtime earned since 1st October, 1990;
(c) for shift workers, payment at time plus one half for one
(1) hour for each week worked since 1st October, 1990,
plus a sum equal to 2.56% of the overtime earned since
1st October, 1990.
5. In the event of these proposals being rejected, the Society
will be seeking an early hearing at the Labour Court in order
to resolve this matter.