Labour Court Database __________________________________________________________________________________ File Number: CD94456 Case Number: LCR14567 Section / Act: S26(1) Parties: TARA MINES - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the revision of target for bonus earnings.
Recommendation:
The Court has considered all of the issues raised by the parties
in their oral and written submissions and having considered the
effect of the interferences recommends that the parties should
adjust the metres per man-shift to 1.50 m.m.s.
The Court so recommends.
Division: MrMcGrath Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD94456 RECOMMENDATION NO. LCR14567
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
TARA MINES
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the revision of target for bonus earnings.
BACKGROUND:
2. 1. The Company employs 770 workers in Navan, Co. Meath.
The present dispute involves 51 development miners.
2. The Company operates a bonus scheme for the development
miners. Payment is based on productivity which is
measured in metres of tunnel mined per man-shift worked
(metres per man-shift M.M.S.). Revised contract
arrangements for the workers were put in place in March,
1994. The bonus earnings target included in the revised
contract for 100% performance was 1.58 metres per man
shift (m.m.s.).
3. The Irish Productivity Centre (I.P.C.) was requested by
the Company to assist with the implementation of the
revised arrangements. This took the form of constant
monitoring and the implementation of a training
programme. The I.P.C. recorded productivity over 3
fortnightly bonus periods. The miners achieved 1.35
m.m.s., 1.04 m.m.s. and 1.26 m.m.s. over this time.
4. It was not possible for the parties to agree on the
revised contract. The dispute was referred to the
Labour Relations Commission and was the subject of seven
conciliation conferences between December, 1993 and 26th
August, 1994. At conciliation the Union claimed that
factors outside the control of the miners prevented them
from reaching the bonus target (details supplied). It
was also claimed that the development miners were losing
#80 - #100 per week because of the revised contract and
compensation for this loss was sought. The Company
responded that a recognition of the "interference"
factors was built into the new contract.
5. The Industrial Relations Officer requested that a study
be undertaken by the I.P.C. on the factors which the
miners believed were affecting their productivity
thereby preventing them from reaching their full bonus
earnings. The I.P.C. found that the interference
allowance was marginally greater than that contained in
the contract. The Company responded that some
tightening up of supervision might be required.
6. On 9th August, 1994 the dispute was referred to the
Labour Court under Section 26(1) of the Industrial
Relations Act, 1990. The Labour Court investigated the
dispute on 15th September, 1994 and a letter
recommendation issued to the parties on 7th October,
1994.
UNION'S ARGUMENTS:
3. 1. The Company's decision to increase the metres per man
shift required for bonus purposes is selective and
ignores the precedent set by the Company itself (details
supplied). If the workers had accepted the Company's
new standard, the Company would have achieved a 127.9%
increase in the value of the bonus standard between 1987
and 1993.
2. The Company's new standards are not achievable and will
result in a substantial loss in wages by the workers
(details supplied). The Company and its consultants
have disregarded the many aspects of the operation which
adversely affect the workers' ability to earn bonus.
The only possible solution is the introduction of an
interim contract value (details supplied). The Company
must also deal with the issue of arrears of earnings.
COMPANY'S ARGUMENTS:
4. 1. The Company's industrial engineers, on the foot of a
study of new equipment installed, concluded that the
"old standard" was obsolete and had to be modified. The
new standard, which was arrived at by industrial
engineering methods, reflects the potential of the new
equipment and is supported by the I.P.C.
2. The I.P.C. report is an independent study and it
concludes that the new standard of 1.58 m.m.s is
achievable. If the new contract is worked as agreed,
the return to the claimants would directly correspond to
their efforts. The Union's case for the loss of
earnings cannot be justified.
RECOMMENDATION:
The Court has considered all of the issues raised by the parties
in their oral and written submissions and having considered the
effect of the interferences recommends that the parties should
adjust the metres per man-shift to 1.50 m.m.s.
The Court so recommends.
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Signed on behalf of the Labour Court
8th November, 1994 Tom McGrath
J.F./M.M. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Jerome Forde, Court Secretary.