Labour Court Database __________________________________________________________________________________ File Number: CD92648 Case Number: LCR13916 Section / Act: S26(1) Parties: UP-RIGHT IRELAND LIMITED - and - TECHNICAL ENGINEERING AND ELECTRICAL UNION |
Compensation for downgrading of chargehands, furnace minders and a sprayer.
Recommendation:
5. The Court having considered the views of the parties as
expressed in their oral and written submissions recommends that
the workers concerned be compensated by red-circling for a period
of one year and payment of 52 weeks' loss of earnings.
The Court so recommends.
Division: MrMcGrath Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD92648 RECOMMENDATION NO. LCR13916
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: UP-RIGHT IRELAND LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
TECHNICAL ENGINEERING AND ELECTRICAL UNION
SUBJECT:
1. Compensation for downgrading of chargehands, furnace minders
and a sprayer.
BACKGROUND:
2. The Company is involved in the manufacture of light-weight
scaffolding for the domestic and international markets. In early
1992, agreement was reached between the parties on a redundancy
package. In addition a number of areas were reorganised resulting
in the downgrading of 3 chargehands, 2 furnace minders and 1
sprayer. Losses in pay to the workers concerned ranged from #10
to #40 per week. As a result of the downgrading, the Company
proposed to red-circle the pay of the workers concerned for a
period of 1 year after which a lump-sum payment of 26 times the
weekly loss would be paid. The red-circling arrangement was put
in place but agreement could not be reached on the lump-sum
payment and the matter was referred to the Labour Relations
Commission. A conciliation conference was held on 2nd October,
1992, but agreement was not reached and the matter was referred to
the Labour Court on 21st October, 1992. The Court hearing took
place on 17th December, 1992.
UNION'S ARGUMENTS:
3. 1. The workers concerned have held their current rates of pay
for approximately 9 years.
2. In agreeing to the rationalisation plan, the workers have
shared the burden of additional work arising out of a
significant number of redundancies.
3. All employees in the Company forfeited the 1st Phase of
P.E.S.P. in order to finance the purchase of a pressure die
cast system which has increased the output capacity of the
foundry by a factor of about 4-1. Further additional capital
investment is planned which will further increase efficiency
and productivity output.
4. Compensation of 3 times the annual loss is fair and
reasonable and should be applied to the workers concerned.
COMPANY'S ARGUMENTS:
4. 1. The Company contend that the offer is more than generous
particularly in view of the fact that:
(a) the Company is experiencing severe financial and
operational difficulties,
(b) regardless of financial difficulties the offer
should be seen as being in excess of the average.
2. The red-circling of pay for 1 year and compensation
amounting to 26 times the weekly loss effectively means no
loss of earnings for 1.50 years.
3. The offer is a significant improvement on the previous
offer and precedent set in the Company. For some time there
has been agreement between the Company and the Union to
compensate people for loss of grade by 26 weeks' loss of
earnings.
4. The Company cannot afford to pay any additional monies.
To do so would demonstrate to the Company's bankers that the
Company are unable to control costs. Such a signal could be
very damaging to the future well being of the Company.
RECOMMENDATION:
5. The Court having considered the views of the parties as
expressed in their oral and written submissions recommends that
the workers concerned be compensated by red-circling for a period
of one year and payment of 52 weeks' loss of earnings.
The Court so recommends.
~
Signed on behalf of the Labour Court
Tom McGrath
____________________
11th January, 1993. Deputy Chairman
F.B./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.