Labour Court Database __________________________________________________________________________________ File Number: CD9426 Case Number: LCR14341 Section / Act: S26(1) Parties: CLERY AND COMPANY LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Clause 3 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
5. 1. Having considered the submissions from the parties the
Court recommends that the Union accept the proposals set out
at Appendix B. of the Employer's submission subject to the
deletion of Clause 5 - Sick Pay.
2. In relation to Clause 5 the Court further recommends
that the parties enter into negotiations with the objective
of agreeing a new Sick Pay scheme which will address the
Company and Union's problems with the existing scheme.
3. The recommendation at (1) above is made in the context
of the Company's statement at the hearing that they are
willing to address individual problems of transport and
security.
Division: Ms Owens Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD9426 RECOMMENDATION NO. LCR14341
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
CLERY AND COMPANY LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Clause 3 of the Programme for Economic and Social Progress
(P.E.S.P.).
BACKGROUND:
2. The workers concerned are employed by the Company in Sales,
Administrative and Display Grades. In June, 1993, local
level discussions took place between the parties concerning
the Union's claim for 3% under the terms of Clause 3 of
P.E.S.P.. The Company put forward proposals in return for
payment of the 3%. The Union rejected the proposals.
The dispute was referred to the Labour Relations Commission.
Conciliation conferences took place on 3rd August, 1993 and
3rd September, 1993. Proposals put forward at the second
conciliation conference (details supplied to the Court) and
recommended for acceptance by both parties, were rejected by
the workers.
The dispute was referred to the Labour Court on 14th January,
1994, for investigation and recommendation under Section
26(1) of the Industrial Relations Act, 1990. A Labour Court
hearing took place on 4th February, 1994.
UNION'S ARGUMENTS:
3. 1. During the course of discussions on Clause 3 of P.E.S.P.
60 workers were made redundant, resulting in substantial
savings to the Company.
2. The Company's proposal to extend closing time to
6 p.m would have serious implications for security in the
store and would cause considerable inconvenience to staff
travelling on public transport.
3. The Company's proposals on sick pay are unacceptable to
the workers.
4. Concessions sought in relation to Christmas trading,
electronic time and attendance system and the non-cash
payment of wages more than justify payment of the 3% under
Clause 3 of P.E.S.P.
COMPANY'S ARGUMENTS:
4. 1. In 1993, the Company implemented a major rationalisation
programme in an effort to restore profitability and to avoid
substantial losses. The Company's financial position is such
that it is not exceptional as envisaged by Clause 3 of
P.E.S.P.
2. The retail trade in general has been seriously depressed
in recent years due to the difficult economic climate and
intense competition. These problems have been compounded in
the drapery trade by substantial increases in the level of
VAT in the budgets of 1992 and 1993.
3. The Company's proposals (detailed as follows) represent
a reasonable trade-off between the Union's claim for 3% and
the Company's desire to ensure that any agreement is at least
self-financing:
1. Increase the stores trading hours until 6 p.m.
Monday to Saturday (excluding Thursdays). This
would be achieved by staff working one early week,
followed by one late week - i.e. 9 a.m. to
5.30 p.m. and 9.30 a.m. to 6 p.m.
2. Christmas Trading - the Company wish to make a
permanent arrangement to trade for up to 4 Sundays
during the month of December each year. The
Company also wish to trade for up to an additional
6 late nights until 8 p.m. (excluding Thursdays)
during December each year under the presently
agreed terms.
3. All staff to co-operate with a new Electronic Staff
Time and Attendance System which would be linked to
a VDU system for recording in the Staff Office.
This would speed up the preparation of wages and
provide a better service to staff who have any
queries - i.e. time due, holidays etc. Management
confirmed that this new system will be used for the
same purpose as the existing system and there will
be no change in the occasions a person records
attendance except when working overtime.
4. Weekly wages to be paid by a non-cash method either
by cheque, credit transfer or pay path. This would
provide a more secure method of wage payments and
would protect staff from the problems associated
with cash payouts. Information on systems operated
by various banks and building societies has
been provided to the Union some of which meet the
Union requirement that the cheque or credit
transfer be cashable without charge to the
individual employee; each employee can opt for
payment through the financial institution which
suits him/her best.
5. Sick Pay - staff on paid sick leave will surrender
their Social Welfare Cheque to the Company.
6. The Company will implement the full 3% provided for
in Clause 3 of P.E.S.P. from date of acceptance of
these proposals.
7. As a once-off arrangement, the Company will make
available to each staff member a Clery's voucher to
the value of #50; this can be offset against goods
or against a person's account.
8. The above proposals are being put forward on the
basis that they are being recommended by both sides
as being the best that can be achieved in all the
circumstances. If rejected by either side they are
automatically withdrawn.
4. Payroll costs represent over 60% of total costs and in
excess of 20% of gross sales. These figures are
substantially out of line with the rest of the trade.
RECOMMENDATION:
5. 1. Having considered the submissions from the parties the
Court recommends that the Union accept the proposals set out
at Appendix B. of the Employer's submission subject to the
deletion of Clause 5 - Sick Pay.
2. In relation to Clause 5 the Court further recommends
that the parties enter into negotiations with the objective
of agreeing a new Sick Pay scheme which will address the
Company and Union's problems with the existing scheme.
3. The recommendation at (1) above is made in the context
of the Company's statement at the hearing that they are
willing to address individual problems of transport and
security.
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Signed on behalf of the Labour Court
16th February, 1994 Evelyn Owens
F.B./M.M. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.