Labour Court Database __________________________________________________________________________________ File Number: CD95294 Case Number: LCR14890 Section / Act: S26(1) Parties: ROWNTREE MACKINTOSH/NESTLE - and - AMALGAMATED TRANSPORT GENERAL WORKERS UNION |
Appropriate Shift Rate
Recommendation:
Having considered the submissions, and noting that the
consolidated rate is treated as the basic rate for overtime and
holiday pay purposes, the Court considers that the Union's claim
is reasonable and should be conceded without prejudice to the
outcome of future negotiations.
The Court also notes the Company's submission on profit
margins, and the Union's expressed willingness to negotiate a
shift premium rate if shift work is required in the future.
The Court recommends that such negotiations take place immediately
in order to avoid a similar dispute to the one under consideration
taking place.
Division: Ms Owens Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD95294 RECOMMENDATION NO. LCR14890
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
ROWNTREE MACKINTOSH/NESTLE
AND
AMALGAMATED TRANSPORT GENERAL WORKERS UNION
SUBJECT:
1. Appropriate Shift Rate
BACKGROUND:
2.1 In 1986, the Company introduced a redundancy/rationalisation
programme, which resulted in shift working being abolished
altogether. The shift premium at that time was 25%. The
remuneration package consisted of basic pay, plus shift
premium plus bonus. The shift premium only applied to the
basic rate of pay.
2 Following the rationalisation programme, discussions took
place between the Union and the Company and agreement was
reached to consolidate the bonus element into the basic rate
of pay.
3 The Company has since introduced shift work on a temporary
basis, involving four workers. The Company proposed a shift
premium of 20% but this was rejected by the Union, which
is looking for the original shift premium of 25%.
4 As no agreement could be reached between the parties, the
dispute was referred to the Labour Relations Commission and a
conciliation conference was held on the 12th of April, 1995.
5 No agreement was reached, and the dispute was referred to the
Labour Court on the 24th of April, 1995, in accordance with
Section 26(1) of the Industrial Relations Act, 1990. The
Court investigated the dispute on the 29th of August, 1995
(The earliest date suitable to both parties).
UNION'S ARGUMENTS:
3.1 It had originally been agreed between the Union and the
Company, to consolidate the bonus element into a new basic
rate of pay. This new rate of pay has operated since
1986/87. If the Company wants to re-introduce shift working,
albeit on a temporary basis, the shift premium of 25% should
apply.
2 It is not acceptable to the Union that the Company should
offer 25% shift allowance to the craft workers and, at the
same time, offer 20% to the general operative grade.
3 The cost of implementing this claim is minimal and should be
conceded by the employer.
COMPANY'S ARGUMENTS:
4.1 The Union is looking for a 25% shift premium, to apply to the
consolidated bonus element, which would have the effect of
increasing shift premiums by a further 5%. The profit margins
are such that the Company cannot reduce them any further.
2 The Company paid a shift premium of 25% in the current
dispute based on a 39 hour working week, but excluded the
bonus element of pay which was consolidated in the 1986
agreement. The shift premium paid by the Company is in line
with that of its competitors. Irish Biscuits pays a shift
premium of 18% while Cadburys pays a rate of 22%. Statistics
obtained by IBEC for a range of Companies in the Dublin area
indicate a premium of 17.5% for early shift and 18.8% for
evening shift.
RECOMMENDATION:
Having considered the submissions, and noting that the
consolidated rate is treated as the basic rate for overtime and
holiday pay purposes, the Court considers that the Union's claim
is reasonable and should be conceded without prejudice to the
outcome of future negotiations.
The Court also notes the Company's submission on profit
margins, and the Union's expressed willingness to negotiate a
shift premium rate if shift work is required in the future.
The Court recommends that such negotiations take place immediately
in order to avoid a similar dispute to the one under consideration
taking place.
~
Signed on behalf of the Labour Court
7th September, 1995 Evelyn Owens
L.W./A.K. -------------
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Larry Wisely, Court Secretary.