Labour Court Database __________________________________________________________________________________ File Number: CD94344 Case Number: LCR14532 Section / Act: S20(2) Parties: WATERFORD CRYSTAL LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION |
Dispute concerning the payment of the master's rate to workers.
Recommendation:
5. The Court has examined the arguments submitted by the parties
concerning the application of the full Master's Rate (Clause 5.4)
and the manner in which it is affected by the wage reductions and
capping mechanism. On balance, the Court is satisfied that for
pay and capping purposes a "like with like" comparison should be
made between 1992 values and the values in subsequent years.
Accordingly, the Court recommends that where Clause 5(4) of the
Cost Improvement Agreement is being implemented, the full Master's
Rate should be applied to the 1992 values for wage comparison and
capping purposes.
The Court noted in the course of the evidence presented that the
Cutters have a self-imposed limitation on production. From the
experience gained in its long association with the parties in many
difficult situations, the Court, while it understands the
immediate considerations of the Cutters, is strongly of the view
that artificial barriers on production are not in the long-term
interest of either the workers or the Company. The Court
therefore suggests to the Union and the workers concerned that
they review their policy on this matter.
Division: Mr Heffernan Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD94344 RECOMMENDATION NO. LCR14532
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 concerning the payment of the master's rate to
workers.
BACKGROUND:
2. 1. This dispute arose out of a Company/Union agreement for
the payment of the master's rate to all non-master
craftsmen with ten years qualified service. The
implementation of this agreement was deferred on a
number of occasions due to the financial circumstances
of the Company and was finally introduced at the same
time as the 1993 Cost Improvement Agreement following
LCR 13911.
2. The 1993 Cost Improvement Agreement allowed for the
introduction of the British Standard Institute Bonus
Systems (BSI) within the craft sections and guaranteed a
cap of 25% on loss of earnings for a period following
its introduction. In order to establish losses above
the 25% cap, the Company agreed to calculate cutters
earnings using both the old piece rate system and the
new BSI system. The Union contend that the workers are
suffering a loss because of the Company's refusal to
include the master's rate when calculating earnings on
both systems for cutters who qualify for payment of the
master's increment during the period of guaranteed
protection. The Company maintain that the Union's claim
is contrary to the agreement and would
also have the effect of protecting any wedge cutter
gaining under the earlier payment of the master's rate
on an ongoing weekly basis at a level lower than the 25%
protection level.
UNION'S ARGUMENTS:
3. 1. During negotiations with the Wedge Cutting Committee the
Company refused to accept that the master's rate was in
effect an increment. However, in a memorandum to the
Committee in December, 1989 the Company acknowledged
that the master's rate was an increment.
2. The number of cutters involved, and the size of the
adjustments which would occur if the rate was applied to
both systems would not increase the Company's costs to
any significant degree.
COMPANY'S ARGUMENTS:
4. 1. The application of the 25% cap as provided for in the
1993 Cost Improvement Agreement means wedge cutters are
protected to a maximum piece rate pay reduction of 25%
for the period up to 31st December, 1995. The Union is
seeking to import the advantages under the new system
into the old system so as to increase the protection
afforded to the workers.
2. The wedge cutters concerned with the Union's claim have
an advantage every week under the new pay system in
comparison with those wedge cutters on the master's rate
or those wedge cutters not yet near the tenth year
qualified rate.
3. The wedge cutters' section operates an internally
controlled cap on their members piece rate earnings and
this prevents them earning above their historical
average up to a certain performance level.
RECOMMENDATION:
5. The Court has examined the arguments submitted by the parties
concerning the application of the full Master's Rate (Clause 5.4)
and the manner in which it is affected by the wage reductions and
capping mechanism. On balance, the Court is satisfied that for
pay and capping purposes a "like with like" comparison should be
made between 1992 values and the values in subsequent years.
Accordingly, the Court recommends that where Clause 5(4) of the
Cost Improvement Agreement is being implemented, the full Master's
Rate should be applied to the 1992 values for wage comparison and
capping purposes.
The Court noted in the course of the evidence presented that the
Cutters have a self-imposed limitation on production. From the
experience gained in its long association with the parties in many
difficult situations, the Court, while it understands the
immediate considerations of the Cutters, is strongly of the view
that artificial barriers on production are not in the long-term
interest of either the workers or the Company. The Court
therefore suggests to the Union and the workers concerned that
they review their policy on this matter.
~
Signed on behalf of the Labour Court
3rd August, 1994 Kevin Heffernan
P.O'C./U.S -----------------
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Paul O'Connor, Court Secretary.