Labour Court Database __________________________________________________________________________________ File Number: CD95656 Case Number: LCR15135 Section / Act: S26(1) Parties: NYPRO (Represented by THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - and - AMALGAMATED ENGINEERING ELECTRICAL UNION |
Public Holidays; Sick Pay; Annual Leave; 39 Hour Week; Meal Breaks; Calculation of Overtime; Rest Days; Roster Premia; Retrospection re Roster Premia.
Recommendation:
The Court, having considered all of the views of the parties as
expressed in their oral and written submissions, makes the
following recommendations:-
1. That the Company proposals be accepted and implemented
in respect of the Public Holidays, Sick Pay Scheme,
Annual Leave, meal breaks and the calculation of
overtime.
2. That, noting that the application of the 39 hour week
affects employees generally within the Company and that
a claim has been entered on behalf of other employees
affected, the issue be the subject of discussions
with the representatives of all employees concerned.
3. Rest Days:- The Court notes that the parties are agreed
on the application of the days to count as suitable rest
days.
4. Roster Premia:-
Two Team Rota:
Current 10% to be increased to 15%. Saturday
absence reduces premium by 6%, while Sunday absence
reduces the premium by 9%. Absence on both days
eliminates the premium.
Three Team Rota:
Current 7.5% to be increased to 12.5 %. Saturday
absence reduces the premium by 5%, while Sunday
absence reduces the premium by 7.5%.
Absence on both days eliminates the premium.
Four Team Rota:
Current 5% to be increased to 10%. Saturday
absence reduces the premium by 4%, while Sunday
absence reduces the premium by 6%. Absence on both
days eliminates the premium.
5. Date of Application (Retrospection for Rota Premium):-
Retrospective payment of increased Rota Premia to each
appropriate employee will be conceded from his
individual start date on the Rota System.
Division: Mr McGrath Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD95656 RECOMMENDATION NO. LCR15135
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
NYPRO
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
AMALGAMATED ENGINEERING ELECTRICAL UNION
SUBJECT:
1. Public Holidays; Sick Pay; Annual Leave; 39 Hour Week; Meal
Breaks; Calculation of Overtime; Rest Days; Roster Premia;
Retrospection re Roster Premia.
BACKGROUND:
2. The Union represents approximately 18 Craft workers from a
total workforce of 260 employees. Following a Labour Court
hearing in 1994 (LCR14476 refers), the Company and the Union
began extensive negotiations to put in place a comprehensive
Company/Union agreement.
Conciliation conferences were held under the auspices of the
Labour Relations Commission and agreement was reached on the
majority of issues, with the exception of the above which
relate to a 3 Team Rota System operated by 6 staff in the
Maintenance area. The System is based on a six-week rota
cycle where all 7 days are treated as normal working days.
Staff are required to work 14 x 11-hour days and 10 x 8-hour
days throughout the cycle, which averages 39 hours per week
over the six-week period.
Two further conciliation conferences took place on 10th July,
1995 and 19th July, 1995 and a proposal (details supplied to
the Court) was submitted by the Industrial Relations Officer
(IRO) on 28th August, 1995. Following clarification of a
number of points, the Union rejected the proposal and
requested that the dispute be referred to the Labour Court in
accordance with Section 26(1) of the Industrial Relations
Act, 1990. A Labour Court hearing took place on 20th
February, 1996, the earliest date suitable to both parties.
UNION'S ARGUMENTS:
3. 1. Public Holidays:- Public Holidays are paid at the rate
of 8 hours per day. However, where a Public Holiday
falls on an 11 hour day, the workers should be paid for
11 hours, not 8 hours as proposed by the Company. This
is covered by Section (4) 1 (b) of the Holiday Employees
Act, 1973.
2. Sick Pay:- Sick leave should be expressed in days rather
than hours, as all employees commence entitlement to
sick pay benefit on the 7th day of absence. The
Company's proposal that the workers concerned will
receive benefit after 48 hours have been worked, is
inequitable, as some workers may be denied benefit for
up to 13 calendar days.
3. Annual Leave:- The Maintenance workers' preferred option
is for 20 days Annual Leave, as applies to all other
workers. They reject the Company's proposal to define
the Annual Leave entitlement as 160 hours (20 x 8
hours).
4. 39 Hour Week:- A one hour reduction in the working week
was agreed under P.E.S.P. negotiations. In all other
settlements, the 40 hour weekly rate was divided by 40
and multiplied by 39 to determine a new basic rate. The
same criteria should be used in this case.
5. Meal Breaks:- The Plant Agreement specifies that 10
minute tea breaks are allowed if the continuous working
period is of 4.5 hours duration. The Union's claim is
for one paid ten minute tea break in the morning and a
second paid ten minute break in the afternoon. The
actual hours of attendance on the long days are 12
hours, with one hour unpaid intervening.
6. Calculation of Overtime:- The workers concerned work
Saturday and Sunday on 2 weeks in every 6 weeks, and 11
hour days on 4 weeks out of 6 weeks, for which a premium
is paid. When overtime is worked it should be
calculated on the pay rate for the shift, not at the
basic rate of day workers as proposed by the Company.
7. Rest Days:- It is agreed that, where Saturdays and
Sundays are scheduled to be worked, Wednesday and
Thursday of the following week will be recognised as
substitute rest days.
8. Roster Premia:- The IRO's proposal was as follows:-
(a) TWO TEAM ROTA:
Current 10% to be increased to 12.5%. Saturday
absence reduces premium by 5%, while Sunday
absence reduces the premium by 7.5. Absence on
both days eliminates the premium.
(b) THREE TEAM ROTA:
Current 7.5% to be increased to 10%. Saturday
absence reduces the premium by 4%, while
Sunday absence reduces the premium by 6%.
Absence on both days eliminates the premium.
(c) FOUR TEAM ROTA:
Current 5% to be increased to 7%. Saturday
absence reduces the premium by 3%, while
Sunday absence reduces the premium by 4%.
Absence on both days eliminates the premium.
The Union's claim is that the appropriate premia for a
Two Team Rota should be 17.5%, a Three Team rota - 15%,
and a Four Team Rota - 12.5%, with no reduction as a
result of a certified illness on Saturday or Sunday.
9. Retrospection re Roster Premia:- The IRO's proposal that
each employee should receive retrospective payment of
increased Rota Premia from his individual start date on
the Rota System is accepted.
COMPANY'S ARGUMENTS:
4. 1. Public Holidays:- The established practice applying to
all employees is to pay a normal day's pay plus 8 hours
pay in lieu of the Public Holiday or, alternatively,
time off in lieu. If the Union's claim were to be
conceded, it would give rise to an unsustainable
differential and would lead to 'knock-on' claims from
all other employees.
2. Sick Pay:- All workers must be treated fairly and
equitably, therefore the Company proposes that a working
day should be defined as 8 hours. Sick leave benefit
would begin after 6 x 8 hour days i.e. 48 working hours
and entitlement to benefit would be for 20 x 8 hour days
i.e. 160 hours. Both periods would be applied according
to the hours pattern on the roster.
3. Annual Leave:- All workers, including senior management,
receive 20 days Annual Leave, based on an 8 hour working
day. This amounts to 160 hours leave. If rota workers
were entitled to nominate an 11 hour day as 1 day's
Annual Leave, it would lead to difficulties in arranging
maintenance cover, substantially increased costs and
knock-on claims from other staff.
4. 39 Hour Week:- The divisor of 40 hours forms an integral
part of a long standing agreement, which applies to all
employees since the introduction of the shorter working
week. Under the agreement there was to be no adjustment
in the basic rate of pay, the hourly rate or the
divisor, and, therefore no increase in the calculation
of hourly pay. Any adjustment to the divisor would lead
to unsustainable knock-on claims which would not allow
the company to remain competitive and could lead to job
losses.
5. Meal Breaks:- The current meal breaks are as follows:-
10 minutes paid break in the morning,
60 minutes unpaid lunch break.
The Company is prepared to rearrange the break times for
rostered staff to give a greater number of breaks on the
extended working days, as follows:-
15 minutes unpaid break in the morning,
45 minutes unpaid lunch break,
10 minutes paid break in the afternoon.
This gives the rostered staff the same total time off as
other staff and they will continue to receive premium
payments for the extended days.
6. Calculation of Overtime:- The Company's long standing
agreement and policy dictates that overtime is paid on
basic rate alone and that the premium is then added,
calculated on the basic rate. All employees are treated
similarly and the Company is not prepared to make an
exception for the Maintenance rota staff.
7. Rest Days:- The Company agrees that, in a week where
both Saturday and Sunday are scheduled as normal working
days, the following Wednesday and Thursday will be
recognised as rest days to which the normal Saturday and
Sunday overtime rates will apply.
8. Roster Premia:- The Company operates within very tight
margins with increasing material costs, while its labour
costs are almost £1 per hour higher than its sister
plant in the UK. Long term contracts require scheduled
and continual price reductions, therefore increased
labour costs cannot be passed on to the customer.
Nevertheless, the Company was prepared to consider a
review of the premia should agreement be reached in
other areas, but the Union rejected all elements of the
IRO's proposal.
9. Date of Application/Retrospection re Roster Premia:- The
Company acknowledges the co-operation of the workers who
have worked the 3 Team Rota System since April, 1995 and
agrees to apply any change in the rota premia
retrospectively from each individual's start date.
RECOMMENDATION:
The Court, having considered all of the views of the parties as
expressed in their oral and written submissions, makes the
following recommendations:-
1. That the Company proposals be accepted and implemented
in respect of the Public Holidays, Sick Pay Scheme,
Annual Leave, meal breaks and the calculation of
overtime.
2. That, noting that the application of the 39 hour week
affects employees generally within the Company and that
a claim has been entered on behalf of other employees
affected, the issue be the subject of discussions
with the representatives of all employees concerned.
3. Rest Days:- The Court notes that the parties are agreed
on the application of the days to count as suitable rest
days.
4. Roster Premia:-
Two Team Rota:
Current 10% to be increased to 15%. Saturday
absence reduces premium by 6%, while Sunday absence
reduces the premium by 9%. Absence on both days
eliminates the premium.
Three Team Rota:
Current 7.5% to be increased to 12.5 %. Saturday
absence reduces the premium by 5%, while Sunday
absence reduces the premium by 7.5%.
Absence on both days eliminates the premium.
Four Team Rota:
Current 5% to be increased to 10%. Saturday
absence reduces the premium by 4%, while Sunday
absence reduces the premium by 6%. Absence on both
days eliminates the premium.
5. Date of Application (Retrospection for Rota Premium):-
Retrospective payment of increased Rota Premia to each
appropriate employee will be conceded from his
individual start date on the Rota System.
~
Signed on behalf of the Labour Court
16th April, 1996 Tom McGrath
D.G./S.G. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Ms. Dympna Greene, Court Secretary.