Labour Court Database __________________________________________________________________________________ File Number: CD93326 Case Number: LCR14210 Section / Act: S26(1) Parties: W. J. DWAN AND SONS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the collection of product.
Recommendation:
5. Having listened to the detailed verbal submissions which were
made at the hearing to supplement the written submissions made to
the Court, the Court is satisfied that in the interest of
obtaining new business contracts employees should agree that
customers own transport may collect under the following limited
circumstances.
1. Where a new business contract is entered into by a
customer only on condition that it must be allowed to do
its own collection. This should automatically be agreed
with the undertaking by the employer that no loss of jobs
will result.
2. Where a customer of long standing wishes to re-negotiate
a contract so as to use his own transport to collect,
this should be discussed and agreed with the Unions
before the change is agreed.
At the end of the first year following acceptance of this
recommendation the parties should meet to review its operation.
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD93326 RECOMMENDATION NO. LCR14210
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: W. J. DWAN AND SONS LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the collection of product.
BACKGROUND:
2. The Company is mainly involved in the wholesale distribution
of beers and soft drinks and employs approximately 90 workers.
The present dispute concerns six drivers in the transport
department as the Company is proposing to allow customers collect
their own purchases directly from Company depots. The proposal
was rejected by the Union and the issue was referred to the Labour
Relations Commission. A conciliation conference was held on the
7th April, 1993 but no agreement was reached. The dispute was
referred to the Labour Court on the 13th May, 1993. The Court
investigated the dispute in Thurles on the 29th September, 1993
(the earliest date suitable to the parties).
UNION'S ARGUMENTS:
3. 1. The Company and Union have an agreement that all product
bottled at Dwans would be delivered by Company transport.
This Agreement was entered into with the express intention of
protecting the jobs of the workers concerned.
2. In 1989/90 the Union agreed to make an exception to the
Agreement in order to allow a specific Company collect its own
product from a Company depot. The Union cannot agree to an
escalation of this practice as it will ultimately result in a
loss of jobs.
COMPANY'S ARGUMENTS:
4. 1. The Company is currently operating at 60% of its full
capacity and short-time working has been introduced on many
occasions in the past two years. The Company must have full
co-operation from workers in order to maintain the viability
of its manufacturing operation.
2. The Company has successfully secured significant export
contracts which were collected from the factory and has tried
in a very competitive market to acquire additional business.
Management must have freedom to negotiate contracts.
3. The Company's distribution costs are high vis-a-vis
competitors. This, together with the Union's inflexible
position makes it difficult for the Company to be competitive
and restricts its ability to attract new business. The
Company's trading position is precarious. In refusing
co-operation on collection arrangements the Union risks
jeopardising future contracts and the job security of the
workers concerned.
RECOMMENDATION:
5. Having listened to the detailed verbal submissions which were
made at the hearing to supplement the written submissions made to
the Court, the Court is satisfied that in the interest of
obtaining new business contracts employees should agree that
customers own transport may collect under the following limited
circumstances.
1. Where a new business contract is entered into by a
customer only on condition that it must be allowed to do
its own collection. This should automatically be agreed
with the undertaking by the employer that no loss of jobs
will result.
2. Where a customer of long standing wishes to re-negotiate
a contract so as to use his own transport to collect,
this should be discussed and agreed with the Unions
before the change is agreed.
At the end of the first year following acceptance of this
recommendation the parties should meet to review its operation.
~
Signed on behalf of the Labour Court
Evelyn Owens
_____________________
7th October, 1993. Deputy Chairman.
T.O'D./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.