Labour Court Database __________________________________________________________________________________ File Number: CD95275 Case Number: LCR14831 Section / Act: S26(1) Parties: KRUPS ENGINEERING LIMITED (THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION (S.I.P.T.U. |
Shift premium in the injection moulding (IM) department.
Recommendation:
In the circumstances pertaining to the Company, the Court
considers it should uphold the Company's position.
The Court, accordingly, recommends that the Union accepts that a
rate of 25% should apply to 3-cycle shift in the IM department and
that existing employees retain the 36% rate on a "red circled"
basis.
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD95275 RECOMMENDATION NO. LCR14831
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
KRUPS ENGINEERING LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION (S.I.P.T.U.)
SUBJECT:
1. Shift premium in the injection moulding (IM) department.
BACKGROUND:
2. The dispute concerns the appropriate shift rate premium for a
new worker on the Company's 3 - cycle shift.
The Company has manufactured a range of small domestic
appliances in Limerick since 1964. In 1991, the Company was
taken over by the Moulinex Group. There are currently 615
workers at the plant, 45 of whom are represented by the
Union.
A shift premium of 36% for 3 - cycle shift working in the IM
department was agreed in 1980. The shift premium was applied
to craft and other workers in the IM department. In a
clarification to Labour Court Recommendation (LCR) No. 12697
the Court confirmed that the 36% rate was to be applied only
in the IM department. In 1994, LCR No. 14488 recommended
that the 36% shift premium "should be red-circled in respect
of present holders".
The craft group in the IM department has consisted of 3
workers on a 3-cycle shift for a number of years. The 3
workers have received a shift premium of 36%. Early in 1995,
one of the 3 workers was promoted. The Company proposed that
the vacancy be filled in the normal way by advertising
internally but with a shift premium of 25%. The Company
claims that this is the rate applying for 3 - cycle shifts in
all other areas of the plant. The Union maintains that
the 36% premium should apply to the worker who fills the
vacancy.
The dispute was referred to the Labour Relations Commission.
A conciliation conference was heard on 15th March, 1995, but
no agreement was reached. The dispute was referred to the
Labour Court on 25th April, 1995, under Section 26(1),
Industrial Relations Act, 1990. A Labour Court hearing took
place on 29th June, 1995, (the earliest date suitable to the
parties).
UNIONS' ARGUMENTS:
3. 1. LCR No. 12697 established the 36% premium for 3 - shift
work in the IM department. The Company stated that it
would honour the agreement.
2. The Union is prepared to "red circle" the 36% premium
for the 3 positions in the IM department. The rate
applies to the job itself, not to the individual
concerned. The Union has agreed to 25% premium for 3 -
shift work in the new motor department.
3. The Union has agreed to a wage cut of 10.54% across the
board due to the financial difficulties of the Company.
It did not receive the 3% pay rise under the Programme
for Economic and Social Progress (P.E.S.P.) although all
other workers received the payment.
COMPANY'S ARGUMENTS:
4. 1. The Company has agreed to "red circle" the 36% premium
for the 2 remaining workers in the IM department. The
36% premium is higher than normal for 3 - shift working
in Ireland. A premium of 25% applies to 3 - shift
workers in all other parts of the plant, by agreement
with the Union.
2. Payment of 36% premium to new craft workers in the IM
department would not be consistent with developments in
recent years regarding general workers in that
department. The Company cannot pay the 36% premium
indefinitely for craft workers while it is being phased
out for general workers.
3. The Company is currently making significant losses. If
it is to remain competitive it must eliminate all
excessive costs which may jeopardise the Company's
future.
RECOMMENDATION:
In the circumstances pertaining to the Company, the Court
considers it should uphold the Company's position.
The Court, accordingly, recommends that the Union accepts that a
rate of 25% should apply to 3-cycle shift in the IM department and
that existing employees retain the 36% rate on a "red circled"
basis.
~
Signed on behalf of the Court
20th July, 1995 Evelyn Owens
C.O.N./A.K. ____________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.