Labour Court Database __________________________________________________________________________________ File Number: CD94383 Case Number: LCR14564 Section / Act: S26(1) Parties: GROVE TURKEYS LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION |
Payment of phases 2 and 3 of the Programme for Economic and Social Progress (PESP).
Recommendation:
The Court having considered all of the issues raised by the
parties in their oral and written submissions recommends.
1. All employees agree to the implementation of the piece rate
system.
2. The Kill Line and the Packing area to go onto a piece rate
system from the date of acceptance of this Recommendation for
a trial period of six months.
3. The operation of the new system to be reviewed monthly. A
joint monitoring committee to be established to oversee the
operation of the new system and to rectify expeditiously any
problems which may arise.
4. For the period of the trial period the employees on piece
rate to be guaranteed a basic rate of pay equivalent to the
current rate increased by the terms of phase 2 of the PESP
provided that current levels of production are at least
maintained.
5. Those employees not working under the new system to be paid
the increases under phase 2 of the PESP and to work the piece
rate system when it is put into effect in their production
areas.
6. On acceptance of this recommendation the Company to pay to
the employees a lump sum in respect of full retrospective of
phase 2 of PESP.
7. At the end of the six months trial period the parties to
review in all its aspects the operation of the system. This
review to take into account any retrospection outstanding
under the terms of the PESP.
The Court so recommends.
Division: MrMcGrath Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD94383 RECOMMENDATION NO. LCR14564
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
GROVE TURKEYS LIMITED
AND
AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Payment of phases 2 and 3 of the Programme for Economic and
Social Progress (PESP).
BACKGROUND:
2. 1. The Company is part of the Kerry Group PLC and is based
in Smithboro, Co. Monaghan. It is involved in the
farming and processing of turkeys and employs
approximately 250 workers. The Company exports 60% of
its produce, mainly to the U.K. market. Approximately
25% of its business is transacted in the month of
December.
2. The Union applied for phase 2 of the PESP on 1st
February, 1993. The Company claimed inability to pay
and the dispute was referred to the Labour Relations
Commission. A number of conciliation conferences took
place. At a second conciliation conference the
Industrial Relations Officer (IRO) proposed the
introduction of a Piece Rate System, to take place
initially in the kill line and packing areas. Full
retrospection of phase 2 of the PESP was to be paid as a
lump sum to all employees. Workers not on the Piece
Rate System would receive the 3% of phase 2 provided
they agreed to go on the System when it came into their
part of the production process. The Piece Rate System
was to be introduced for a trial period and would be
monitored on a monthly basis. A once-off payment of
#100 was to be paid to each worker for the introduction
of the System.
3. Although the Company and Union delegates accepted the
IRO's proposal the members, in a ballot, rejected it. A
third conciliation conference took place on 16th June,
1994. Again, the members rejected the introduction of a
Piece Rate System until all phases of the PESP were
paid.
4. As no agreement could be reached the dispute was
referred to the Labour Court on the 19th July, 1994
under Section 26(1), of the Industrial Relations Act,
1990. A Labour Court hearing took place on 25th August,
1994 (the earliest date suitable to the parties).
UNION'S ARGUMENTS:
3. 1. The Company is obliged under the National Agreement to
pay phase 2 of the PESP to the workers. It appears to
be deliberately withholding payment of the PESP in order
to introduce the Piece Rate System.
2. The Union has tried to all times to solve the dispute.
The workers are not willing to do extra work on the
Piece Rate System for money which is already due to them
under the terms of the PESP.
COMPANY'S ARGUMENTS:
4. 1. The Company experienced serious trading difficulties in
1992 because of a number of factors, e.g. the sterling
crisis in late 1992, the collapse of the frozen turkey
trade and a fire in the Smithboro plant, which destroyed
two thirds of the processing facilities. A large number
of the workforce had to be laid off as a result and the
Company is in a survival mode since.
2. The Company has paid, and continues to pay, a #10 per
week profit sharing payment to each worker despite the
absence of profits. This payment is roughly equivalent
to phases 2 and 3 of the PESP which have not been paid.
3. The introduction of the Piece Rate System, which would
be self-financing, is the only way the Company can
continue. If it is not accepted the future of the
Company is in doubt.
RECOMMENDATION:
The Court having considered all of the issues raised by the
parties in their oral and written submissions recommends.
1. All employees agree to the implementation of the piece rate
system.
2. The Kill Line and the Packing area to go onto a piece rate
system from the date of acceptance of this Recommendation for
a trial period of six months.
3. The operation of the new system to be reviewed monthly. A
joint monitoring committee to be established to oversee the
operation of the new system and to rectify expeditiously any
problems which may arise.
4. For the period of the trial period the employees on piece
rate to be guaranteed a basic rate of pay equivalent to the
current rate increased by the terms of phase 2 of the PESP
provided that current levels of production are at least
maintained.
5. Those employees not working under the new system to be paid
the increases under phase 2 of the PESP and to work the piece
rate system when it is put into effect in their production
areas.
6. On acceptance of this recommendation the Company to pay to
the employees a lump sum in respect of full retrospective of
phase 2 of PESP.
7. At the end of the six months trial period the parties to
review in all its aspects the operation of the system. This
review to take into account any retrospection outstanding
under the terms of the PESP.
The Court so recommends.
~
Signed on behalf of the Labour Court
5th October, 1994 Tom McGrath
C.O'N./D.T. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.