Labour Court Database __________________________________________________________________________________ File Number: CD94175 Case Number: LCR14446 Section / Act: S26(1) Parties: UNIFI TYE LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Clause 3 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
The Court has considered the submissions from the parties and has
also had sight of the agreement reached with the Company and
another group of workers in the employment.
The Court considers that the proposals which emanated from
Conciliation form the basis for agreement and, accordingly,
recommends them to both parties with the following amendments:-
(1) PAID LEAVE OF ABSENCE
Substitute 36 hours for 48 in sub-para (ii);
(2) BOOKING AND TAKING OF HOLIDAYS
Substitute 20% for 15%.
The Court notes that the question of partial summer shutdown is
not now an issue between the parties.
The Court further recommends that the operative date be 1st
February, 1994.
Division: Ms Owens Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD94175 RECOMMENDATION NO. LCR14446
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
UNIFI TYE LIMITED
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 Company is based in Letterkenny and is a subsidiary of
Unifi, North Carolina, U.S.A.. It employs approximately 500
workers in the manufacture of polyester filament yarns for
export, mainly to the U.K. and Europe.
The dispute before the Court concerns approximately 350
workers who operate on continuous shift. In 1993,
discussions took place between the parties in relation to the
payment of the 3% under the terms of clause 3 of P.E.S.P.
The Company sought certain concessions in return for the
payment of the 3%. The proposals, recommended by the Union
for acceptance were rejected by the workers.
The dispute was referred to the Labour Relations Commission.
Conciliation conferences were held on 14th January, 1994,
26th January, 1994 and 17th February, 1994, following which a
further set of proposals as follows were put before the
workers and recommended for acceptance by the Union:
" Paid Leave of Absence
i) The 24 hours additional holidays conceded under the
39 hour week agreement will be changed to paid
leave of absence hours.
ii) This will bring the annual total number of paid
leave of absence hours to 48 and they will
generally be taken in periods of one hour at a time
suitable to both the employee and the Company.
iii) However, by agreement, leave of absence can be
taken in longer periods on the strict understanding
that overtime cover will not be required.
iv) A set of guidelines in relation to the taking of
paid leave of absence hours is attached as per
Appendix A. (Details supplied to the Court).
Booking and Taking of Holidays
The proposed arrangements for above are attached as
Appendix B. (Details supplied to the Court).
Wages
From the date of acceptance of this agreement basic
wage rates will be increased by 3%.
The above proposals are being put forward as a
total package on the basis that they are being
recommended by both sides. If rejected by either
party they are automatically withdrawn and have no
status whatsoever".
The workers rejected the proposals. These proposals included
provision for the implementation of LCR No. 14322 which
referred to the booking and taking of holidays by shift
workers.
The dispute was referred to the Labour Court on 21st March,
1994, for investigation and recommendation under Section
26(1) of the Industrial Relations Act, 1990. A Labour Court
hearing took place on 13th April, 1994.
UNION'S ARGUMENTS:
3. 1. Craft workers in the Company have received the full 3%
with retrospection to the date of the 2nd phase of
P.E.S.P. and conceded nothing in return.
2. Any changes in the holiday system based on percentages
will result in considerable savings to the Company. This
alone justifies the payment of the 3%.
3. The Company has made substantial profits in the past ten
years.
4. In 1987 the Company became the first textile company in
Ireland to be awarded the Quality Mark by the Irish
Quality Association. In 1989 it was awarded the ISO
9002.
5. The workers on-going co-operation has made a
considerable contribution to the quality attained and
the financial success of the Company.
6. The workers concerned are seeking similar treatment to
the craft workers and to other workers in the Textile
Industry generally who have received the 3% in similar
circumstances.
COMPANY'S ARGUMENTS:
4. 1. The proposals outlined are the best possible in the
circumstances and are the result of a considerable
amount of time and effort from both sides. All other
possible methods of making a contribution have been
examined and rejected.
2. In the current economic situation the willingness of the
Company to reach agreement should be recognised.
3. The proposals outlined make a contribution of 0.6%. The
nett additional cost to the Company would be #140,000
and in the Company's current financial position this is
a burden it can ill-afford to carry.
4. The principle of trade-off for concessions under Clause
3 is firmly established.
5. The Company has reached agreement with craft workers
in relation to the attainment of technician status and
the elimination of inter-craft demarcation. This deal
is self-financing and includes concession of Clause 3 of
P.E.S.P.. The deal was necessary in order to obtain the
skills and knowledge to maintain the high technology
equipment and machinery coming on-line so as to maintain
the Company's competitive position.
6. It is the Company's intention to grow and develop its
business in Letterkenny and create further employment in
the near future. However, this growth and development
can only take place in a positive trading environment
and it is imperative that costs are kept under control
in order to achieve this target.
RECOMMENDATION:
The Court has considered the submissions from the parties and has
also had sight of the agreement reached with the Company and
another group of workers in the employment.
The Court considers that the proposals which emanated from
Conciliation form the basis for agreement and, accordingly,
recommends them to both parties with the following amendments:-
(1) PAID LEAVE OF ABSENCE
Substitute 36 hours for 48 in sub-para (ii);
(2) BOOKING AND TAKING OF HOLIDAYS
Substitute 20% for 15%.
The Court notes that the question of partial summer shutdown is
not now an issue between the parties.
The Court further recommends that the operative date be 1st
February, 1994.
~
Signed on behalf of the Labour Court
20th May, 1994 Evelyn Owens
F.B./M.M. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.