Labour Court Database __________________________________________________________________________________ File Number: CD92201 Case Number: LCR13673 Section / Act: S26(1) Parties: VITA CORTEX (INDUSTRIAL) LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning rates of pay.
Recommendation:
5. The Court recommends that the six employees in Vita Cortex
(Industrial) who transferred from Kinsale Road should have their
basic wages which they enjoyed before transfer "red circled". The
Court does not recommend that they should carry their former bonus
payments.
Division: Mr Heffernan Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD92201 RECOMMENDATION NO. LCR13673
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
PARTIES: VITA CORTEX (INDUSTRIAL) LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning rates of pay.
BACKGROUND:
2. The workers here concerned were employed by Vita Cortex
Limited until their employment was terminated in December, 1991.
Their service with the Company ranged from 7 months to 18 months.
The going rate for the job at the age of 21 was #180 per week
plus a bonus of #20. The Company is involved in the manufacture
of foam blocks and polyethlene foam. In October, 1991, the
Company announced that in the interest of viability and its
workforce, it intended to expand the block plant to allow for the
manufacture of a higher quality foam. To allow for the expansion
the polyethlene form section would close down. Subsequently the
Company informed the Union that they were considering acquiring
new premises to re-locate the polyethlene foam work and to
transfer the workers concerned to the new site and employ them at
a lower rate of pay. In a ballot, held in November, 1991, the
workers rejected the Company's proposal to reduce their wages if
they were transferred to the new site. The workers concerned were
informed by the Company that their employment would cease at the
end of December, 1991. The workers concerned were laid-off in
December, 1991 and re-employed by Vita Cortex (Industrial) Limited
at a reduced rate of pay on 2nd January, 1992. The Union claims
that the workers are doing virtually the same work in a different
location and submitted a claim for the higher rate of pay to be
restored to them. The Company rejected the claim and the matter
was referred to the Labour Relations Commission. Conciliation
conferences were held on 10th January, 1992 and 18th February,
1992, and, as no agreement could be reached, the matter was
referred to the Labour Court on 31st March, 1992. The Court
hearing took place on 7th May, 1992.
UNION'S ARGUMENTS:
3. 1. The workers concerned should have the rates of pay they
enjoyed before they transferred "red circled". New employees
would start at the lower rate of pay, as part of their
contract of employment.
2. The Union welcomed the retention of the workers'
employment but the threatened action of management to cease
production of the polyethlene foam line is not negotiation but
the blackmailing of the Union and the workers.
3. The Company invested in new premises, installed machinery,
set up office facilities and decorated the premises. It would
not do this if the operation is not viable.
COMPANY'S ARGUMENTS:
4. 1. The workers concerned accepted and signed terms and
conditions of employment in January, 1992.
2. The Company's situation is fragile and it will not survive
a major loss of sales or payment of unsustainable rates of
pay. Wage rates paid by the Company are above the norm for
similar industries.
3. The Company has taken a risk investing in this business.
It can, in the long term, make it viable if allowed to compete
on level terms with its competitors.
4. The basic rate of pay is due for revision under P.E.S.P.
on 29th May, 1992.
5. The Company has provided the workers concerned with an
attractive work environment with good facilities and
conditions of employment.
RECOMMENDATION:
5. The Court recommends that the six employees in Vita Cortex
(Industrial) who transferred from Kinsale Road should have their
basic wages which they enjoyed before transfer "red circled". The
Court does not recommend that they should carry their former bonus
payments.
~
Signed on behalf of the Labour Court
Kevin Heffernan
______________________
4th June, 1992. Chairman
F.B./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.