Labour Court Database __________________________________________________________________________________ File Number: CD95609 Case Number: LCR15004 Section / Act: S26(1) Parties: POWER SUPERMARKETS (PSL) (Represented by THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - and - MANDATE |
Sunday and Public Holiday trading.
Recommendation:
The Court recommends that the Company proposals, as outlined in
the Court, including the safeguards, be accepted by the employees.
The Court, in making this Recommendation, would stress that these
arrangements should not be seen as setting the norm for all such
operations. The Court is conscious that the Sunday trading
position is at an emerging stage and obviously as the practice
becomes clearer there will be a requirement for the relevant
parties to agree arrangements and payment systems to meet the
requirements as they consolidate.
Division: Mr Flood Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD95609 RECOMMENDATION NO. LCR15004
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
POWER SUPERMARKETS (PSL)
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
MANDATE
SUBJECT:
Sunday and Public Holiday trading.
BACKGROUND:
Power Supermarkets Limited trades as Quinnsworth, Crazy
Prices and Lifestyle. It employs over 7,000 workers at 75
locations throughout the country.
In December, 1994, the Company indicated to the Union its
concern regarding extended trading developments, particularly
in relation to the Sunday and Public Holiday trading of its
main competitors. A number of meetings took place between
the parties following which the Company put forward the
following proposals in respect of Sunday/Public Holiday
working.
"(A) Sunday Working
It is proposed that Sunday working for established
staff will be on a strictly voluntary basis and
double time will apply for the hours worked on the
day.
Staff whose roster will include Sunday working will
be paid time and 1/2 for the hours worked on
Sundays.
(B) Public Holiday
It is proposed that established staff working on
these days will also be on a strictly voluntary
basis and double time (in addition to statutory
entitlement) will apply for the hours worked on the
day.
Staff whose roster will include working on Public
Holidays will receive a premium of Time + 1/2 for
hours worked on the Public Holiday (in addition to
statutory entitlement)."
The Company's proposals were not acceptable to the Union and
the matter was referred to the Labour Relations Commission.
Conciliation conferences took place on 13th October, 1995 and
20th October, 1995 but agreement could not be reached and the
matter was referred to the Labour Court on 23rd October, 1995
under Section 26(1)) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on 13th November, 1995. At
the hearing the Company gave certain assurances in relation
to creating full-time jobs and maintaining current ratios.
UNION'S ARGUMENTS:
1. The Company's share of the grocery market has increased to
approximately 26 per cent. It has gained market share from
all its main rivals and has made substantial profits in the
past year. The introduction of Sunday/Public Holiday trading
will further enhance its ability to increase market share and
to increase profits.
2. The earnings of the workers concerned are below the national
average. The workers have seen their employment casualised
to an alarming extent and are entitled to be protected
against a further erosion of the quality of their employment.
3. The Company's proposal to introduce a two-tier system of
terms and conditions of employment for Sunday/Public Holiday
trading is unacceptable to the Union. Sunday/Public Holiday
working should be voluntary for all workers. Payment for
such work for all workers to be double-time.
4. The Union is seeking agreement in relation to Sunday/Public
Holiday trading as follows:-
(1) Protection of full-time jobs.
(2) Protection of established ratios between full-time and
part-time staff.
(3) Protection of existing earning power.
(4) Protection of existing promotional opportunities.
(5) Starting and finishing times.
5. The union is concerned at the Company's attempt to introduce
a contractual liability for all new employees to work
Sunday/Public Holidays. This has major implications for the
whole sector and the quality of jobs. full-time jobs will
disappear in search of total flexibility, and Sunday will
become just another basic working day.
6. The Union does not wish to place Power Supermarkets at a
trading disadvantage with its main rivals. It has negotiated
many agreements on extended hours and recognised the
requirement for limited Sunday trading at Christmas more than
ten years ago.
7. The question of Sunday/Public Holiday trading in the retail
sector is a sensitive issue, the economic and social need of
such a facility is far from established. The Company is
capable of conceding double-time for Sunday/Public Holiday
trading and the principle of voluntary attendance for all its
employees. Any difference in the rates or conditions will be
exploited.
COMPANY'S ARGUMENTS:
1. The Company cannot tolerate a situation where it operates at
a serious competitive disadvantage to other operators in the
trade. It is necessary to respond to trade developments if
the Company is to remain successful and to provide secure and
progressive employment for its established workforce. It
would appear that the Union will agree with this in principle
but not in practice.
2. Sunday and Public Holiday trading is now well established by
the Company's principal competitor. Such trading is also
long established in the independent sector which represents
serious and real competition - this sector carries extensive
stock ranges and engages in bulk/group purchasing (JLC rates
predominate here with Time + 1/3 the norm for Sunday working
as part of the normal roster, coupled with lower basic rates
than those applying in PSL).
3. Companies representing over 60% of the grocery market share
can, and do, actively engage in Sunday/Public Holiday trading
(these companies include Dunnes, Supervalue, other Symbol
groups, independents and petrol forecourts). PSL cannot sit
idly by and ignore changes in shopping trends. It must be in
a position to respond on equal terms.
4. The Company would draw the Court's attention to the fact that
its principal competitor operates both in the grocery and
drapery sectors and, therefore enjoys the significantly
higher margins of their drapery business. PSL is primarily a
grocery business.
5. PSL does not operate zero hour contracts - work rosters are
well established, rosters notified in advance and split
shifts are not operated. PSL operates to a significantly
higher proportion of full-time to part-time workers than all
its principal competitors.
6. Negotiations under Clause 3 of the Programme for Economic and
Social Progress are concluded both in Dublin (since
1/11/1992) and the vast majority of locations around the
country.
RECOMMENDATION:
The Court recommends that the Company proposals, as outlined in
the Court, including the safeguards, be accepted by the employees.
The Court, in making this Recommendation, would stress that these
arrangements should not be seen as setting the norm for all such
operations. The Court is conscious that the Sunday trading
position is at an emerging stage and obviously as the practice
becomes clearer there will be a requirement for the relevant
parties to agree arrangements and payment systems to meet the
requirements as they consolidate.
~
Signed on behalf of the Labour Court
8th December, 1995 Finbarr Flood
F.B./A.K. ----------------
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.