Labour Court Database __________________________________________________________________________________ File Number: CD93639 Case Number: LCR14297 Section / Act: S26(1) Parties: LIEBERT INTERNATIONAL B.V. - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the appropriate rate of shift premium to be paid for working a three cycle shift.
Recommendation:
5. Having considered the submissions of the parties and the oral
evidence presented at the hearing, the Court considers that the
appropriate premium for rotating three shift working in this case
is 26%. This takes account of usual rates pertaining for this
type of working and the fact that the workers in this case are
unsupervised.
Division: Mr Heffernan Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD93639 RECOMMENDATION NO. LCR14297
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1)
INDUSTRIAL RELATIONS ACT, 1990
PARTIES: LIEBERT INTERNATIONAL B.V.
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the appropriate rate of shift premium to be
paid for working a three cycle shift.
BACKGROUND:
2. 1. The Company manufactures a range of specialised air
conditioning systems, they are part of an American corporation
and have been operating a plant in Cork since 1983. A
Company/Union agreement provided for a two shift premium of
16.6% and a three shift premium of 20%. Initially when the
Company commenced operations a number of workers were on
permanent evenings i.e. 4.30 p.m. to 12.30 a.m., with a shift
premium of 16.6%. In 1986, this premium was raised to 22.5%
and a rotating shift of days and evenings was agreed with
effect from June, 1987.
2. In 1993, the Company informed the workers that due to
pressure of work orders it was extending the two cycle shift
to a three cycle shift which would include a night shift. The
Union informed management that this shift should carry a shift
premium of at least 33.33%. The Company agreed to pay this
premium on an interim basis, pending a referral by them to the
Labour Relations Commission.
3. The issue was referred to the Labour Relations
Commission and a conciliation conference was held on 28th
September, 1993. Agreement could not be reached and the
dispute was referred by the Labour Relations Commission to the
Labour Court on the 8th November, 1993. The Court
investigated the matter on the 30th November, 1993 in Cork.
UNION'S ARGUMENTS:
3. 1. The existing shift premium is 22.5% for two cycle shift.
2. The established practice in industry is to pay a higher
premium for a three cycle shift.
3. Shiftworking can have a detrimental effect on both the
health and social life of workers.
4. Those involved in shiftwork at this plant are subjected
to more pressure and responsibility as they work
unsupervised after 7.00 p.m.
COMPANY'S ARGUMENTS:
4. 1. It is important for the Company to be cost effective in
order to compete for business.
2. Labour costs as a percentage of sales are excessive by
comparison with both the United States and the United
Kingdom.
3. Shift premia in the computer industry in Ireland are
lower than 22.5% for two shift and lower than 26% for
three shift cycle.
4. The Company is prepared to pay a shift premium of 26%
for a three cycle shift.
RECOMMENDATION:
5. Having considered the submissions of the parties and the oral
evidence presented at the hearing, the Court considers that the
appropriate premium for rotating three shift working in this case
is 26%. This takes account of usual rates pertaining for this
type of working and the fact that the workers in this case are
unsupervised.
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Signed on behalf of the Labour Court
17th December, 1993 Kevin Heffernan
P. O'C/U.S. ----------------
Chairman
NOTE:
Enquiries concerned this Recommendation should be addressed to
Mr Paul O'Connor, Court Secretary.