Labour Court Database __________________________________________________________________________________ File Number: CD9428 Case Number: LCR14442 Section / Act: S26(1) Parties: ATLANTIC MILLS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Loss of earnings.
Recommendation:
The Court having considered all of the arguments put forward in
the oral and written submissions of the parties recommends that
the loss of earnings of those presently affected by shift changes
should be compensated as follows:-
0 - 5 years - 6 months
over - 5 years - 12 months
The Court so recommends.
Division: MrMcGrath Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD9428 RECOMMENDATION NO. LCR14442
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
ATLANTIC MILLS LIMITED
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Loss of earnings.
BACKGROUND:
2. 1. The Company is involved in the manufacture of denim for
the European market. It has plants based at Tullamore and
Longford and employs approximately 500 workers (Tullamore
150, Longford 350). The dispute concerns three workers at
the Longford plant. In 1991 the Company negotiated a
survival plan, part of the package involved a loss of
earnings formula of 6 months. In May, 1993 the Company
proposed to use the 1991 formula i.e. 6 months. The Union
claims that the pre-1991 formula i.e. 18 months must be used.
Management rejected the Union's claim.
2. The dispute was referred to the Labour Relations
Commission and a conciliation conference was held on the 7th
October, 1993. As no agreement was reached the dispute was
referred to the Labour Court on the 14th January, 1994. The
Court investigated the dispute in Longford on the 13th April,
1994. (The earliest date suitable to the parties).
UNION'S ARGUMENTS:
3. 1. In 1989 the Company used the 18 months compensation
formula to pay workers for loss of earnings resulting from
shift changes and loss of regular overtime. The change in
this agreed formula (18 months) to 6 months in 1991 was only
agreed to by the Union because of the financial problems
facing the Company. The Company is now in a profit-making
situation.
2. The workers concerned have enjoyed a level of earnings
and based their family finances on those earnings. They now
experience a loss of income, and as a result financial
strains, because of the level of compensation proposed by the
Company.
3. Many other employers in the region have paid workers, in
similar circumstances, up to 2 years compensation. (Details
supplied to the Court).
COMPANY'S ARGUMENTS:
4. 1. The Company cannot afford to implement the 18 months
loss of earnings formula. It is experiencing extremely
difficult trading conditions. There is a problem in
implementing even the 6 months formula, but Management
proposes to do so in this instance. The Company envisages
that future loss of earnings payments will be less than the 6
months level, (i.e. 3 months loss), in future rundown
situations. These can occur at any time due to the nature of
the Company's business and the need for on-going change.
2. The Company is not in a position to concede claims of
this nature considering the absolute necessity to remain
competitive in a very difficult trading environment. The
Company's main competitors are located in low wage Third
World economies. To concede the Union's claim would have
serious repercussive effects in both plants at Tullamore and
Longford.
RECOMMENDATION:
The Court having considered all of the arguments put forward in
the oral and written submissions of the parties recommends that
the loss of earnings of those presently affected by shift changes
should be compensated as follows:-
0 - 5 years - 6 months
over - 5 years - 12 months
The Court so recommends.
~
Signed on behalf of the Labour Court
19th May, 1994 Tom McGrath
T.O.D./M.M. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.