Labour Court Database __________________________________________________________________________________ File Number: CD9485 Case Number: LCR14415 Section / Act: S26(1) Parties: ATLAS ALUMINIUM LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning: (1) No-Strike Clause; (2) Procedural Agreement.
Recommendation:
The Court, having considered all the views of the parties as
expressed in their oral and written submissions, makes the
following recommendations:
1. Industrial Peace
Good Industrial Relations depends on reasonableness being
exercised by both parties. The agreement is the vehicle
which enables them to resolve issues in dispute. The
agreement here in question as it is constituted in respect of
grievances has been in operation for the past ten years with
both parties recognising the need to maintain continuity of
production if employment is to be safeguarded.
Accordingly, the Court recommends that the agreement in
respect of this clause be continued in its present form.
2. System of Representation
The Court recommends that representation be on the following
basis:
(a) General Plant issues - 4 representatives;
(b) Specific issues - 3 representatives to include
1 representative from the
area concerned;
(c) Individual cases - area representative.
3. Compassionate Leave
The clause to be altered to allow 3 days' leave in respect of
the death of a brother or sister, and the Company proposal as
amended by the above to be accepted.
4. Protective Clothing
The Court notes the safety audit carried out by the Company,
and its commitment to meet its obligations under the Health
and Safety Act in respect of protective clothing.
The Company proposals in regard to the provision of
protective clothing outside the areas covered by the above
Act should be accepted.
5. Paternity Leave
The parties should await the introduction of legislation in
this respect.
6. Service Bonus
There should be no alteration to the existing scheme.
7. Wash-up time
The Court does not concede the claim of the Union. The
parties should seek to adjust break times in such a way as to
ensure that wash-up can be achieved with a minimal loss of
break time.
8. Re-deployment to Lower Grades
The following retention of rate should apply:
Grade Retention - 8 weeks retention of basic
pay.
Shift Allowance Retention - less than six months:- no
retention;
- 6 months to 2 years:-
retention 3 weeks;
- Over 2 years:- 6 weeks
retention.
9. Disciplinary Procedure
The procedure to apply as follows.
Verbal Warning - 3 months
First Written Warning - 6 months
Final Written Warning - 6 months
10. Redundancy
The Court notes the views expressed by the parties and notes
that the Company has indicated that it does not foresee any
redundancies in the near future. The Court takes the view
that the issue of redundancy compensation should be a matter
which the parties should consider in the event that the need
for redundancies arises and in the circumstances of the
Company and the industry at that time.
11. Layoffs
The Court considers that Clause 20 page 11 of the Procedural
Agreement adequately deals with this issue and should be
accepted.
12. Sick-pay
The Court is of the view that no meaningful negotiation has
taken place on this issue. The parties should research what
is normal in Industry schemes and discuss what are reasonable
parameters, taking full account of the cost implications and
the likely effect on absenteeism, of any scheme which the
parties might consider.
13. Training
Having considered the submissions by the parties in relation
to this issue and noting the length of time spent on training
each week, which was accepted by both parties as being on
average 1 hour per week, the Court is of the opinion that the
current arrangements are reasonable.
The Court, therefore, does not recommend concession of the
Union's claim.
The Court so recommends.
Division: MrMcGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD9485 RECOMMENDATION NO. LCR14415
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
ATLAS ALUMINIUM LIMITED
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning:
(1) No-Strike Clause;
(2) Procedural Agreement.
BACKGROUND:
2. The Company was formed in 1981 and manufactures aluminium and
zinc castings, 75% of which are for the export market. It
currently employees 155 workers, 112 of whom are involved in this
dispute. Discussions took place between the parties over the past
2.50 years, concerning a range of issues. Conciliation conferences
(12/1/'94, 24/1/'94) were held under the auspices of the Labour
Relations Commission, at which some issues were resolved. The
issues that remain outstanding are as follows:-
No-Strike Clause (NSC):
The Company claims that the retention of the NSC which has
been in operation since 1983, is vital for the survival of
the Company. The Union's position is that because of the
history of good industrial relations in the Company, the NSC
is no longer necessary.
Procedural Agreement:
The Company sought to introduce a Procedural Agreement from
the 1st January, 1994, effective for 5 years. The parties
failed to reach agreement on the following items:-
i) Level of Union Representation
ii) Compassionate leave
iii) Protective clothing
iv) Paternity leave
v) Service bonus
vi) Wash-up time
vii) Redeployment to lower grades ; compensation
viii) Disciplinary procedure
ix) Standard redundancy package
x) Lay-offs; call back system
xi) Sick-pay Scheme
xii) Training.
The dispute was referred to the Court on the 4th of February,
1994, in accordance with Section 26(1) of the Industrial Relations
Act, 1990. The Court investigated the dispute, in Limerick, on
the 9th February, 1994.
UNION'S ARGUMENTS:
3. NO-STRIKE CLAUSE
Given the history of good industrial relations in the
Company, there is no need for the 'No Strike Clause'. The
Union is bound by the 1990 Industrial Relations Act.
PROCEDURAL AGREEMENT
Level of Union Representation
In order to fully represent all workers, the number of
representatives should be increased from 3 to 4, especially
in view of the fact that the Company operates a 3-cycle
shift.
Compassionate Leave
Compassionate leave in the event of the death of spouses,
parents, sons/daughters and siblings should be increased to 5
days. Compassionate leave in the event of the death of
grandparents and parents-in-law should be increased to 3
days. Increased compassionate leave would enable bereaved to
travel home from abroad for funerals.
Protective Clothing
The Company is in breach of two Acts in this regard:
i) The Payment of Wages Acts, 1979-1991:- by
deducting #1.13 at source - there is no agreement
which permits the Company to make these deductions
on an individual basis.
ii) The 1989 Safety Health and Welfare Act - Statutory
Instrument No. 44, Part 5:- the overalls provided
are protective and should be provided free of
charge. The workers should, therefore, be
reimbursed for all deductions made.
Paternity Leave
The Union seek the immediate implemenation of anticipated new
legislation.
Service Bonus
The present bonus (details supplied) is inadequate and static
and should be improved as follows:-
# 50 after 5 years' service
# 60 after 6 years' service etc., up to
#100 after 10 years' service
Wash-up time
Five minutes should be allowed before meal breaks, which are
diminished in the absence of wash-up time. This is important
from a health and safety point of view.
Re-deployment to lower grades - compensation
Workers re-deployed should hold their grade, for the purposes
of basic pay, for 16 weeks. Those workers on shift for 3
months or more, and re-graded off shift, should retain the
shift allowance for 16 weeks.
Disciplinary procedures
The "shelf-life" of warnings (16 months), is too long at
present:
Verbal warning - 4 months
First written - 6 months
Final written - 6 months.
The duration should be amended, in accordance with the 1983
Agreement, to 9 months:
Verbal warning - 2 months
First written - 3 months
Final written - 4 months.
Standard Redundancy package
A modest package of 2.50 to 3 weeks' pay per year of service
should be put in place, in view of the considerable revenue
generated by the Company.
Lay-offs : Call-back system
A last-in-first-out policy should be strictly adhered to
throughout the Company for lay-off and a policy of
last-out-first-back should be applied for call-back.
Sick-pay Scheme
The scheme proposed by the Union (details supplied to the
Court) is modest and would not be unnecessarily costly to
implement.
Training
An overtime rate should be paid in addition to the 2 x #25
vouchers per annum given to workers involved in training.
COMPANY'S ARGUMENTS:
4. No-Strike Clause
The guarantee of a continuous supply of castings is a major
consideration for potential customers. The NSC helps to
alleviate any worries a customer might have. The strategy of
establishing a reputation of consistency of supply has
resulted in the growth of the Company.
Level of Union Representation
The present level of representation is sufficient. The
Company cannot afford the cost of having excessive numbers of
workers involved in meetings. The Company is prepared to
deal with the full committee on collective bargaining /
dismissal issues and with the Chairman and the area
representative, when a grievance goes to committee stage.
Compassionate Leave
The leave given at present is fair and practical. The
concession of the Union's request would cause the Company
considerable increase in costs.
Protective Clothing
The Company has provided overalls to employees for the past
10 years, sharing the costs of maintenance/cleaning 50/50
with the workers. The net cost to workers is minimal.
Overalls are not considered to be "protective clothing", the
Company is currently investigating various types of safety
overalls for the use in the foundry.
Paternity Leave
The Company will comply with new legislation in respect of
Paternity Leave.
Service Bonus
Due to the current competitive climate, the Company can
ill-afford to increase its costs by increasing bonuses. The
present arrangement will continue to be honoured.
Wash-up time
The work environment is not dirty in a way that would require
abnormal washing-up time for workers, who are provided with
overalls and gloves. Break-times could be re-arranged to
allow workers time to wash-up before meals.
Re-deployment to lower grades ; compensation
The status-quo should be retained as any increase in
compensation would mean a cost-increase for the Company.
Disciplinary procedures
The present system is satisfactory. Warnings are only issued
when it is necessitated by an employee's actions.
Standard Redundancy Package
The Company does not envisage redundancies in the near
future, but if redundancies were forced on the Company, it
might not, at the time, be in a position to make redundancy
payments. The Company's best offer is statutory entitlement,
plus 1 week's pay per year of service.
Lay-offs ; Call-back system
Last-in-first-out operates factory-wide, except in a
situation where lay-offs necessitated more than one foundry
worker being replaced by finishing department personnel.
This would cause problems as there is a considerable length
of time required to train an operator to become a die-caster.
Call-back is on the basis of the seniority of the position
affected. Re-deployment of personnel laid-off for over six
months is at the discretion of the Company.
Sick-pay Scheme
The scheme presently in operation has worked well for the
past 10 years and is fair, reasonable and of satisfactory
standard.
Training
The annual payment of #50 in the form of vouchers is
sufficient. Ten workers or so spend approximately 1 hour per
week on training and any increase in cost could not be
afforded.
RECOMMENDATION:
The Court, having considered all the views of the parties as
expressed in their oral and written submissions, makes the
following recommendations:
1. Industrial Peace
Good Industrial Relations depends on reasonableness being
exercised by both parties. The agreement is the vehicle
which enables them to resolve issues in dispute. The
agreement here in question as it is constituted in respect of
grievances has been in operation for the past ten years with
both parties recognising the need to maintain continuity of
production if employment is to be safeguarded.
Accordingly, the Court recommends that the agreement in
respect of this clause be continued in its present form.
2. System of Representation
The Court recommends that representation be on the following
basis:
(a) General Plant issues - 4 representatives;
(b) Specific issues - 3 representatives to include
1 representative from the
area concerned;
(c) Individual cases - area representative.
3. Compassionate Leave
The clause to be altered to allow 3 days' leave in respect of
the death of a brother or sister, and the Company proposal as
amended by the above to be accepted.
4. Protective Clothing
The Court notes the safety audit carried out by the Company,
and its commitment to meet its obligations under the Health
and Safety Act in respect of protective clothing.
The Company proposals in regard to the provision of
protective clothing outside the areas covered by the above
Act should be accepted.
5. Paternity Leave
The parties should await the introduction of legislation in
this respect.
6. Service Bonus
There should be no alteration to the existing scheme.
7. Wash-up time
The Court does not concede the claim of the Union. The
parties should seek to adjust break times in such a way as to
ensure that wash-up can be achieved with a minimal loss of
break time.
8. Re-deployment to Lower Grades
The following retention of rate should apply:
Grade Retention - 8 weeks retention of basic
pay.
Shift Allowance Retention - less than six months:- no
retention;
- 6 months to 2 years:-
retention 3 weeks;
- Over 2 years:- 6 weeks
retention.
9. Disciplinary Procedure
The procedure to apply as follows.
Verbal Warning - 3 months
First Written Warning - 6 months
Final Written Warning - 6 months
10. Redundancy
The Court notes the views expressed by the parties and notes
that the Company has indicated that it does not foresee any
redundancies in the near future. The Court takes the view
that the issue of redundancy compensation should be a matter
which the parties should consider in the event that the need
for redundancies arises and in the circumstances of the
Company and the industry at that time.
11. Layoffs
The Court considers that Clause 20 page 11 of the Procedural
Agreement adequately deals with this issue and should be
accepted.
12. Sick-pay
The Court is of the view that no meaningful negotiation has
taken place on this issue. The parties should research what
is normal in Industry schemes and discuss what are reasonable
parameters, taking full account of the cost implications and
the likely effect on absenteeism, of any scheme which the
parties might consider.
13. Training
Having considered the submissions by the parties in relation
to this issue and noting the length of time spent on training
each week, which was accepted by both parties as being on
average 1 hour per week, the Court is of the opinion that the
current arrangements are reasonable.
The Court, therefore, does not recommend concession of the
Union's claim.
The Court so recommends.
~
Signed on behalf of the Labour Court
22nd of April, 1994 Tom Mc Grath
M.K./M.M. -------------
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Keegan, the Court Secretary.