Labour Court Database __________________________________________________________________________________ File Number: CD92352 Case Number: LCR13702 Section / Act: S26(1) Parties: IRISH COUNTRY MEATS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning rates of pay.
Recommendation:
The Full Recommendation on this Draft is not available in the Add
Field.
Division: MrMcGrath Mr Brennan Mr Walsh
Text of Document__________________________________________________________________
CD92352 RECOMMENDATION NO. LCR13702
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: IRISH COUNTRY MEATS LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning rates of pay.
BACKGROUND:
2. The dispute concerns workers who are employed on the slaughter
line at the Company's plant at Ballaghaderreen (formerly part of
U.M.P. Group). The Company commenced operations on the 6th May,
1992. At a meeting with the Union on the 11th May, 1992 the
Company proposed that the workers concerned should be paid by way
of an incentive rate system. On the 13th May, 1992, following a
ballot of the Union membership, the Company's proposal was
rejected. Strike notice was served on the 18th May. The Union
submitted a claim for a basic wage of #160 p.w. plus overtime.
Management rejected the Union's claim. The workers commenced
industrial action on the 26th May, 1992. The dispute was referred
to the Labour Relations Commission in May, 1992. Conciliation
conferences were held on the 20th and 28th May, and 3rd and 8th
June, 1992. At the final conciliation conference the Company put
forward a set of proposals which were rejected by the Union. The
dispute was referred to the Labour Court by the Labour Relations
Commission on the 15th June, 1992. The Court investigated the
dispute on the 23rd and 29th June, 1992.
UNION'S ARGUMENTS:
3. 1. The Union is committed to the principle of basic pay plus
overtime. The issue is of fundamental importance. The
previous owners of the plant operated this system of payment.
By operating the Company's system the workers concerned will
suffer a substantial reduction in their earnings. The Union
is prepared to operate a bonus scheme as an incentive in line
with schemes applying in the meat industry generally.
2. The Union is prepared to co-operate with a joint or
independent study of the type of bonus scheme most suitable
once the issue of basic pay and overtime is agreed. These
should be comparable to rates applying in the beef industry
generally (details of comparable employments supplied to the
Court). The Company's proposals, in restructuring the payment
system and operating a performance related pay system only,
will reduce the level of earnings of the workers and are
unacceptable to the Union.
3. At conciliation the Union put forward the following
proposals.
(i) A basic weekly wage of #160 for a 39 hour week.
(ii) If more than 320 cattle were killed in less than
8 hours, there would be an incentive rate up to 8
hours. This incentive rate would increase by
half after 4.30 p.m. and would be doubled after
8.00 p.m.
COMPANY'S ARGUMENTS:
4. 1. The Company is convinced that the method of payment to the
workers concerned must be the incentive rate system. It is
clear from an examination of other beef operations, that the
successful and progressive companies use incentive rate
systems throughout their plants (details supplied to the
Court). The advantage of the incentive system is that it
enables workers to work as quickly and efficiently as possible
and, from a Company standpoint, Management has much better
control over unit costs. The system allows workers to reach
higher potential earnings for the same level of throughput.
Naturally, safeguards have to be built into such a system to
cover down time due to mechanical breakdowns or a break in the
flow of cattle. These issues are addressed in the Company's
proposals.
2. The Company is convinced that to operate the
Ballaghaderreen plant efficiently it must do so on an
incentive basis as this will ensure, to the best possible
extent, the plant's future viability. The other two plants
within the Group, at Ballyhaunis and Camolin, are operating
the incentive system. The Company has improved its offer
significantly since the commencement of negotiations. The
beef industry will experience further closures in the future
unless a climate for investment is created and plants operate
a progressive payment system as outlined in the Company's
proposals. They must be given a chance to prove that they
work and the Company is prepared to proceed on a trial basis
with inbuilt safeguards.
*RECOMMENDATION:
5. The Court has fully considered the views of the parties
expressed in their oral and written submissions and in the
discussions held separately with each party.
The Court considers that, in all the circumstances and taking
account of the aims of both parties, their interests would best be
served by the introduction of an agreed performance related scheme
for the slaughter line operatives.
Accordingly the Court recommends.
(1) That there be an immediate resumption of normal working.
(2) That immediately following resumption of work the Union and
Company industrial engineers carry out a joint examination of
the slaughter-line working and put forward proposals for a
performance related scheme; that the scheme be agreed and
implemented witin a lead in period of eight (8) weeks from the
date of acceptance of this Recommendation.
(3) That for the duration of the lead-in period referred to in 2
above the following arrangements apply.
(a) That the manning on the slaughter line be 41.
(b) That there be a full attendance of employees on the line
to ensure the throughput targets can be achieved. (To
this end employees should commit themselves to full
attendance and punctuality and management should make
available relief cover in respect of unavoidable
absences).
(c) That the Company shall make such arrangements as are
necessary, to ensure (1) the quantity and frequency of
supply of cattle and (2) the maintenance of the slaughter
line free of downtime so as to enable employees to
achieve the throughput targets.
(d) Subject to (a)(b)(c) above the following shall apply.
(i) The Company will pay an amount of #32 per day for a
throughput of 340 cattle to be achieved in an 8
hour day or such time as it takes to achieve this
throughput, subject to paragraph 4(b) below.
(ii) Throughput in excess of 340 achieved within the 8
hour period shall be paid for at the following
rates.
Up to 360 - 3.86 per animal
" " 400 - 4.00 " "
in excess 400 - 4.20 " "
(4) (a) Generally work in excess of the normal day should not
arise during the lead-in period. Where however such does
arise (e.g. surplus supply of cattle, late delivery of
cattle, deferred processing of cattle due to downtime
outside of the control of the employees) payment shall be
in accordance with the premia laid down in paragraph
3(d)(ii) + 20%.
(b) In the event that the supply of cattle is insufficient or
interrupted or there is downtime due to mechanical or
other failure outside of the control of the employees and
the normal day target has not been achieved the employees
shall be compensated as if the normal day target had been
achieved.
(c) Downtime due to insufficient supply of cattle or other
causes outside of the control of the employees shall be
recorded jointly by a representative of the employees
nominated by the workers and a member of management.
(5) Staff in excess of the manning level of 41 (see Recommendation
3(a)) shall be redeployed. There shall be no discrimination
in the selection of staff to be redeployed. Employees
redeployed shall be paid the appropriate rate for the job.
In the event that there is a claim for loss of earnings this
shall be a subject for discussion between the parties and
failing agreement shall be referred to an agreed third party
for a recommendation.
(6) The performance-related scheme (see 2 above) shall be
implemented for a trial period up to 1st January, 1993 when
the scheme shall be reviewed in all its aspects including
targets, manning levels and payment systems.
(7) It is the view of the Court that there is a need for the
parties to develop co-operative and harmonious relations if
the Company is to attract further investment and to operate
successfully in the markeplace, and if secure employment is to
be maintained and developed.
To this end the Court would earnestly request both parties to
favourably consider the recommendations.
RECOMMENDATION:
The Full Recommendation on this Draft is not available in the Add
Field.
~
Signed on behalf of the Labour Court
Tom McGrath
______________________
3rd July, 1992. Deputy Chairman
T.O'D./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.