Labour Court Database __________________________________________________________________________________ File Number: CD92554 Case Number: LCR13914 Section / Act: S20(1) Parties: WESTERN MEAT PRODUCERS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Clause 3 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
5. The Court considered all aspects of the issues in dispute as
expressed by the parties in their oral and written submissions.
The objective of the Working Hours Clause of the Programme for
National Recovery was to effect a reduction in hours of work where
the Normal Working week was at or above 40 hours.
Any developments in this area were to have regard to the costs
involved and the implications for competitiveness. Clause 3
(Local Bargaining) of the Programme for Economic and Social
Progress provides a mechanism for changes in rates of pay and/or
conditions of employment up to an amount not exceeding 3%.
Negotiations under this Clause to take full account of the
implications for competitiveness, the need for flexibility and
change.
It is the view of the Court that both of these issues whilst
providing benefits to the employees have cost implications for the
employer.
Given the time tables of both the P.N.R. and P.E.S.P. it was
generally anticipated these issues would have been resolved
separately. The Court has already made a Recommendation for the
resolution of the issue of the reduction in Working Hours.
Given all of the circumstances it is the view of the Court that
the negotiations on Clause 3 of the P.E.S.P. be deferred until 1st
April, 1993 and the position examined at that time in the light of
circumstances prevailing.
The Court therefore recommends.
(1) That the Labour Court recommendation No. 13328 be
discussed by the parties with a view to its
implementation.
(2) That negotiations on Clause 3 be deferred until 1st
April, 1993.
Division: MrMcGrath Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD92554 RECOMMENDATION NO. LCR13914
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
PARTIES: WESTERN MEAT PRODUCERS LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Clause 3 of the Programme for Economic and Social Progress
(P.E.S.P.).
BACKGROUND:
2. In June, 1991, the Labour Court issued Recommendation L.C.R.
No. 13328 (concerning the introduction of the 39 hour week) in
which the Court recommended that both parties accept proposals put
forward by the Industrial Relations Officer on 29th November,
1990. The proposals were rejected by the workers concerned. In
March, 1992, a meeting took place between the parties concerning
the application of Clause 3 of P.E.S.P. The Company indicated at
the meeting that it was not prepared to address Clause 3 of
P.E.S.P. until the question of the 39 hour week is resolved. The
Union proposed that Clause 3 of P.E.S.P. should be dealt with as a
separate issue. The Union's proposal was not acceptable to the
Company and the matter was referred to the Labour Relations
Commission. Conciliation conferences were held on 11th June, 1992
and 4th August, 1992 but no agreement could be reached and the
matter was referred to the Labour Court on 8th September, 1992.
The Court hearing took place on 1st December, 1992.
UNION'S ARGUMENTS:
3. 1. The Company's refusal to address the claim under Clause 3
of P.E.S.P., until the issue of the 39 hour week is resolved
is in breach of the terms of P.E.S.P.
2. The Company failed to respond to the Union's position. It
would not agree that everything could be discussed at
conciliation.
3. The Company is bound by the provisions of the P.E.S.P..
4. It is a matter of ongoing concern to the workers concerned
that they do not have the benefits of the 39 hour week, while
benefits to the Company are ongoing.
COMPANY'S ARGUMENTS:
4. 1. The Company's position is that the issue of the 39 hour
week should be resolved before negotiations on the bargaining
clause begin, thereby restoring confidence in the bargaining
process and industrial relations in the Company.
2. The Company's position on Clause 3 of P.E.S.P. is linked
with the matter of the 39 hour week. Because of difficulties
experienced due to the absence of an early start as set out in
Clause 4, Appendix A, of Recommendation L.C.R. No. 13328, the
Company concluded a local agreement which allowed for an early
start of 15 minutes by eight workers, with effect from 14th
September, 1992 in return for which the Company regraded the
workers concerned as follows:
"the rate for 2 workers was increased from unskilled to
semi-skilled and the rate of 6 workers increased from
semi-skilled to skilled rate".
3. The Company's willingness to engage in discussions under
Clause 3 following agreement on the 39 hour week was stated in
December, 1991. This did not afford any prior commitment to
implementation of an increase under the clause given that:
"even where negotiations take place full account must be
taken of the implications for competitiveness".
The Company would have reviewed its position on Clause 3 in
the light of the commercial and economic circumstances then
prevailing. Given the market conditions over the past 3
months, it has become increasingly obvious to the Company that
it is in no position to make any concessions under Clause 3 of
P.E.S.P.
4. Over the last 12 months, the Company's margins have been
adversely affected by conditions in the industry. As in the
case of many meat plants intervention plays a major supporting
role to the Company's commercial viability. At the end of
1991, E.C. intervention stocks had risen to 860,000 tonnes
compared to 200,000 tonnes in May, 1990. One of the
implications of the recent agreement on CAP reforms will be a
reduction in the intake into intervention.
5. The E.C. have announced that monetary compensatory
(M.C.A.) amounts are to be abolished in 1993. The M.C.A.
payment was intended to protect exporters from fluctuations in
member state currencies.
6. In the 12 months period ending June, 1992, the Company's
labour costs has increased by over 7% over the previous 12
months.
7. The Company is committed to resolving the issue of the 39
hour week as a prelude to any consideration of the claim under
Clause 3. Given the current market conditions, the full
impact of which remains to be determined, the Company seeks
that the Union's claim be deferred until 1994 and that in the
interim the parties resolve the issue of the 39 hour week.
8. Against a background of a deterioration in the marketplace
conditions, the Company has provided secure employment in a
rural community where unemployment levels are high.
RECOMMENDATION:
5. The Court considered all aspects of the issues in dispute as
expressed by the parties in their oral and written submissions.
The objective of the Working Hours Clause of the Programme for
National Recovery was to effect a reduction in hours of work where
the Normal Working week was at or above 40 hours.
Any developments in this area were to have regard to the costs
involved and the implications for competitiveness. Clause 3
(Local Bargaining) of the Programme for Economic and Social
Progress provides a mechanism for changes in rates of pay and/or
conditions of employment up to an amount not exceeding 3%.
Negotiations under this Clause to take full account of the
implications for competitiveness, the need for flexibility and
change.
It is the view of the Court that both of these issues whilst
providing benefits to the employees have cost implications for the
employer.
Given the time tables of both the P.N.R. and P.E.S.P. it was
generally anticipated these issues would have been resolved
separately. The Court has already made a Recommendation for the
resolution of the issue of the reduction in Working Hours.
Given all of the circumstances it is the view of the Court that
the negotiations on Clause 3 of the P.E.S.P. be deferred until 1st
April, 1993 and the position examined at that time in the light of
circumstances prevailing.
The Court therefore recommends.
(1) That the Labour Court recommendation No. 13328 be
discussed by the parties with a view to its
implementation.
(2) That negotiations on Clause 3 be deferred until 1st
April, 1993.
~
Signed on behalf of the Labour Court
Tom McGrath
___________________
8th January, 1993 Deputy Chairman.
F.B./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.