Labour Court Database __________________________________________________________________________________ File Number: CD93308 Case Number: LCR14140 Section / Act: S20(2) Parties: WATERFORD CRYSTAL LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION |
Dispute arising from the interpretation of L.C.R. 13911.
Recommendation:
4. Having considered all the circumstances of the claim the Court
recommends as follows:-
1. The Company has given a strong commitment to Rheintour
Cutters on a significant reduction in short-time working
for the year 1993. The integrity of the 1993 Agreement
requires that this commitment be honoured and failure to
meet it for whatever reason creates a valid claim for
compensation. The extent of compensation is best
assessed in relation to the short-time working actually
involved throughout the year.
2. The Company should immediately set aside a sum of
#50,000 to be advanced to Rheintour Cutters on account,
having regard to their losses as they arise from
short-time working. The method and calculations for
such payments should be agreed locally.
3. At the end of November, 1993, the parties should submit
to the Court an agreed statement on the extent of net
losses incurred by Rheintour Cutters during 1993 as a
result of short-time or alternative working. The Court
will then make a final decision on the matter of
compensation.
4. The Company should take whatever market and other
initiatives which it finds possible to increase the work
available to Rheintour Cutters.
5. The revised early retirement package should also be
finalised as quickly as possible as its availability may
help reduce the problem of short-time working.
6. Rheintour Cutters should co-operate with the Company in
its efforts to increase the availability of work and
should also accept alternative work in order to limit
losses incurred in short-time working.
This recommendation relates only to Rheintour Cutters. If a
similar claim should arise for any other section it should be
dealt with locally having regard to the particular circumstances
and the terms of the 1993 agreement and if unresolved should be
referred to the Court for final resolution.
CLARIFICATION:
CD93/308
January, 1994
MR WALTER CULLEN
DISTRICT OFFICER
AMALGAMATED TRANSPORT AND GENERAL WORKER'S UNION
KEYSER STREET
WATERFORD
RE: WATERFORD CRYSTAL
LCR14140(RHEINTOUR CUTTERS)
DEAR MR CULLEN
I refer to the above case and recommendation date 15th July, 1993.
FINAL COURT FINDING
As provided for in LCR14140, the Court has examined the agreed
figures for the final losses sustained by Rheintour Cutters in
1993 as a result of short-time working over and above the three
weeks forecasted by the Company at the Court hearing in December,
1992 which gave rise to LCR13911. The initial provision of
#50,000 to be used for advances to Rheintour cutters having regard
to ongoing losses resulting from short-time working was applied to
fully re-imburse losses up to the end of August. Final losses
represent the period September-December, 1993.
In considering the final position the Court has had regard to
- the importance of adherence to all commitments and
undertakings given by each side on acceptance of
LCR13911.
- the agreed basis on which the initial provision of
#50,000 was distributed in respect of short-time
working.
- the fact that the Company undertaking in respect of
short-time working related solely to the year 1993.
As a result of these considerations the Court recommends that the
Company fully re-imburse the Rhinetour Cutters for their final
losses.
Yours sincerely
------------------
Kevin Heffernan
Chairman
c.c. MR PAT KNIGHT, WATERFORD CRYSTAL.
CD93/308
January, 1994
MR PAT KNIGHT
WATERFORD CYRSTAL
KILBARRY
WATERFORD
RE: WATERFORD CRYSTAL
LCR14140(RHEINTOUR CUTTERS)
DEAR MR KNIGHT
I refer to the above case and recommendation date 15th July, 1993.
FINAL COURT FINDING
As provided for in LCR14140, the Court has examined the agreed
figures for the final losses sustained by Rheintour Cutters in
1993 as a result of short-time working over and above the three
weeks forecasted by the Company at the Court hearing in December,
1992 which gave rise to LCR13911. The initial provision of
#50,000 to be used for advances to Rheintour cutters having regard
to ongoing losses resulting from short-time working was applied to
fully re-imburse losses up to the end of August. Final losses
represent the period September-December, 1993.
In considering the final position the Court has had regard to
- the importance of adherence to all commitments and
undertakings given by each side on acceptance of
LCR13911.
- the agreed basis on which the initial provision of
#50,000 was distributed in respect of short-time
working.
- the fact that the Company undertaking in respect of
short-time working related solely to the year 1993.
As a result of these considerations the Court recommends that the
Company fully re-imburse the Rhinetour Cutters for their final
losses.
Yours sincerely
------------------
Kevin Heffernan
Chairman
c.c. MR WATER CULLEN, A.T.G.W.U
Division: Mr Heffernan Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD93308 RECOMMENDATION NO. LCR14140
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969
PARTIES: WATERFORD CRYSTAL LIMITED
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Dispute arising from the interpretation of L.C.R. 13911.
BACKGROUND:
2. 1. Labour Court Recommendation No. 13911 dealt with the
implementation of cost-improvement measures in the Company.
Its provisions were accepted by both the Company and the
Union on 15th January, 1993 and the workers returned to work
on 18th January, 1993. Part of the Recommendation provides as
follows:
"Because of the range and complexity of the total
proposals now being put to staff, the Court recommends
that issues which arise from their interpretation or
implementation and are not resolved through procedures
at local level, should be referred to the Court for
final resolution".
2. The Union wrote to the Labour Court on 30th April, 1993
requesting a Labour Court investigation because of alleged
breach of the Agreement by the Company arising from the
provision of work for Cutters in the Rheintour Section. A
Labour Court investigation took place under Section 20(2) of
the Industrial Relations Act, 1990 on 1st June, 1993.
3. The Company employs 86 Rheintour Cutters in 3 plants; 62
in Kilbarry, 8 in Butterstown and 16 in Dungarvan. During
discussions on the implementation of the cost-improvement
measures, the Company projected on the basis of the previous
year's sales and the achievement of revised manning levels
that there would be 3 weeks' short-time for the Rheintour
Cutters during 1993. These projections were presented to the
Labour Court and the Union prior to the Agreement on
cost-improvement measures.
4. In early 1993 the Company was forced to revise its
forecasts as the Rheintour work available had declined by
12.5%, principally because of market circumstances. In
addition absenteeism had significantly reduced and individual
output per Cutter increased. Short-time working is now
projected as follows:
Kilbarry - 1 week in 4
Butlerstown - 1 week in 4
Dungarvan - 1 week in 2
The short-time forecast is now for 11 weeks on average in the
Rheintour Section providing a surplus of 24 cutters. This
compares with a total of 21 weeks short-time in 1992.
5. The Union's claim is that the Cutters accepted the cost
improvement measures on the basis that short-time working
would be 3 weeks during 1993. The Company state that it is
not restricted to implementing only 3 weeks' short-time
working during 1993. It claims that the increase in
short-time working due to changes in the volume of work
available was outside of its control and that its projections
were as valid as possible in the circumstances (details
supplied).
6. To date semi-skilled or general operative work has been
made available to the Cutters as an alternative to short-time.
It has been offered at the rate for the particular job.
7. The Union is seeking that the Company accept its
commitment to 3 weeks' short-time working for the Rheintour
Section. It has proposed the payment of downtime (details
supplied) or the payment of compensation to Cutters who
redeploy to other areas at the rate for the job. The Union
will agree to red-circle any such agreement.
8. The Company rejected the Union's proposals and sought
reasonable time to resolve the acknowledged difficulties. The
Company proposed to pursue opportunities for increasing work
volumes (details supplied) and to examine early
retirement/redundancy options for Cutters and other workers.
COURT'S FINDINGS:
3. 1. In the lead-up to the ballot on the proposals covered by
L.C.R. 13911, the Company emphasised that a significant
reduction in short-time working would result from
acceptance, provided the agreement was fully implemented
and revised manpower levels achieved. The Union now
claims that these commitments were material to the
acceptance of the proposals and that the subsequent
introduction of short-time working in excess of three
weeks for the Rheintour Cutters constitutes a breach of
the agreement and merits compensatory payments to those
involved.
2. For its part, the Company argues that the commitments
given were conditional, the market and local
circumstances which gave rise to the situation could not
have been foreseen and the Company is actively engaged
in seeking both short-term and long-term solutions to
the problem. Because of these considerations, the
Company submitted, the Court should not find in favour
of the Union's claim.
3. The Court has examined the submissions of the parties in
the context of L.C.R. 13911 and the proposals which that
Recommendation endorsed. These were to herald for the
Company and the workers a new era of consolidation and
expansion of business. In the process, the proposals
set aside various aspects of earlier agreements and
practices and introduced new obligations and
commitments. One of the commitments given by the
Company to Rheintour Cutters, among others, was that
their short-time working would be significantly reduced.
A limit of three weeks, albeit under certain conditions,
was forecasted by the Company at the Court. Having
regard to the nature of the business and the caveats
entered by the Company at the time, the Court does not
regard the three weeks mentioned as an absolute limit
but considers it a ball-park figure which, though it
should not be seriously extended, should be reviewed in
the circumstances of the year as a whole.
4. The Court accepts that the Company's projection of the
work available for Rheintour Cutters for 1993 was made
in good faith on the traditional basis of past
performance. However it is disconcerting that a
projection confidently presented in mid-December was
seriously out of line within a couple of months due
mainly to market fluctuations and to a lesser degree to
reduced absenteeism and improved output by Rheintour
Cutters Despite the difficulties inherent in
forecasting product sales, the Court does not consider
that the simple curtailment of working time to offset
forecasting miscalculations is an adequate response by
the Company in the context of the January, 1993
Agreement. Even though Clause 6 of the 1990 Terms and
Conditions of Employment Agreement (ARB 291) is still
extant, the Court considers that for year 1993 it is
subservient to the specific commitments on short-time
working given in January, 1993.
5. The Court notes that the Company is conscious of its
commitments and is seeking to ameliorate the problem in
the short-term through:
- the provision of alternative work albeit at a
lower level
and
- the identification of additional product areas
or market segments where more business can be
developed.
6. In addition the Company is engaged in the development of
a revised early retirement package which when in place
may directly or indirectly, have the effect of reducing
the amount of short-time working for Rheintour Cutters.
7. The Court considers that these are appropriate responses
to the present difficulties and that they should be
supported by the full co-operation of the workforce.
However they do not alter the losses and hardship
sustained by the Rheintour Cutters to-date and it is as
yet unknown whether they will achieve an improvement in
the present prognosis of one week in four short-time
working in both Kilbarry and Butlerstown and one week in
two in Dungarvan for the remainder of the year.
RECOMMENDATION:
4. Having considered all the circumstances of the claim the Court
recommends as follows:-
1. The Company has given a strong commitment to Rheintour
Cutters on a significant reduction in short-time working
for the year 1993. The integrity of the 1993 Agreement
requires that this commitment be honoured and failure to
meet it for whatever reason creates a valid claim for
compensation. The extent of compensation is best
assessed in relation to the short-time working actually
involved throughout the year.
2. The Company should immediately set aside a sum of
#50,000 to be advanced to Rheintour Cutters on account,
having regard to their losses as they arise from
short-time working. The method and calculations for
such payments should be agreed locally.
3. At the end of November, 1993, the parties should submit
to the Court an agreed statement on the extent of net
losses incurred by Rheintour Cutters during 1993 as a
result of short-time or alternative working. The Court
will then make a final decision on the matter of
compensation.
4. The Company should take whatever market and other
initiatives which it finds possible to increase the work
available to Rheintour Cutters.
5. The revised early retirement package should also be
finalised as quickly as possible as its availability may
help reduce the problem of short-time working.
6. Rheintour Cutters should co-operate with the Company in
its efforts to increase the availability of work and
should also accept alternative work in order to limit
losses incurred in short-time working.
This recommendation relates only to Rheintour Cutters. If a
similar claim should arise for any other section it should be
dealt with locally having regard to the particular circumstances
and the terms of the 1993 agreement and if unresolved should be
referred to the Court for final resolution.
~
Signed on behalf of the Labour Court
Kevin Heffernan
_______________________
15th July, 1993. Chairman.
J.F./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Jerome Forde, Court Secretary.
CLARIFICATION:
CD93/308
January, 1994
MR WALTER CULLEN
DISTRICT OFFICER
AMALGAMATED TRANSPORT AND GENERAL WORKER'S UNION
KEYSER STREET
WATERFORD
RE: WATERFORD CRYSTAL
LCR14140(RHEINTOUR CUTTERS)
DEAR MR CULLEN
I refer to the above case and recommendation date 15th July, 1993.
FINAL COURT FINDING
As provided for in LCR14140, the Court has examined the agreed
figures for the final losses sustained by Rheintour Cutters in
1993 as a result of short-time working over and above the three
weeks forecasted by the Company at the Court hearing in December,
1992 which gave rise to LCR13911. The initial provision of
#50,000 to be used for advances to Rheintour cutters having regard
to ongoing losses resulting from short-time working was applied to
fully re-imburse losses up to the end of August. Final losses
represent the period September-December, 1993.
In considering the final position the Court has had regard to
- the importance of adherence to all commitments and
undertakings given by each side on acceptance of
LCR13911.
- the agreed basis on which the initial provision of
#50,000 was distributed in respect of short-time
working.
- the fact that the Company undertaking in respect of
short-time working related solely to the year 1993.
As a result of these considerations the Court recommends that the
Company fully re-imburse the Rhinetour Cutters for their final
losses.
Yours sincerely
------------------
Kevin Heffernan
Chairman
c.c. MR PAT KNIGHT, WATERFORD CRYSTAL.
CD93/308
January, 1994
MR PAT KNIGHT
WATERFORD CYRSTAL
KILBARRY
WATERFORD
RE: WATERFORD CRYSTAL
LCR14140(RHEINTOUR CUTTERS)
DEAR MR KNIGHT
I refer to the above case and recommendation date 15th July, 1993.
FINAL COURT FINDING
As provided for in LCR14140, the Court has examined the agreed
figures for the final losses sustained by Rheintour Cutters in
1993 as a result of short-time working over and above the three
weeks forecasted by the Company at the Court hearing in December,
1992 which gave rise to LCR13911. The initial provision of
#50,000 to be used for advances to Rheintour cutters having regard
to ongoing losses resulting from short-time working was applied to
fully re-imburse losses up to the end of August. Final losses
represent the period September-December, 1993.
In considering the final position the Court has had regard to
- the importance of adherence to all commitments and
undertakings given by each side on acceptance of
LCR13911.
- the agreed basis on which the initial provision of
#50,000 was distributed in respect of short-time
working.
- the fact that the Company undertaking in respect of
short-time working related solely to the year 1993.
As a result of these considerations the Court recommends that the
Company fully re-imburse the Rhinetour Cutters for their final
losses.
Yours sincerely
------------------
Kevin Heffernan
Chairman
c.c. MR WATER CULLEN, A.T.G.W.U