Labour Court Database __________________________________________________________________________________ File Number: CD9692 Case Number: LCR15138 Section / Act: S26(1) Parties: ATLANTIC MILLS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Compensation for loss of canteen subsidy.
Recommendation:
The Court has fully considered all of the issues raised by the
parties in their oral and written submissions. The Court, given
all of the circumstances of the case, recommends that the
employees concerned by paid £200 in full and final settlement of
this dispute.
Division: Mr McGrath Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD9692 RECOMMENDATION NO. LCR15138
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
ATLANTIC MILLS LIMITED
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Compensation for loss of canteen subsidy.
BACKGROUND:
2. The Company operates two factories, in Longford and
Tullamore, which have been in operation since 1979.
Previously owned by Burlington Industries, they were taken
over by Atlantic Mills Limited in 1988. The Longford plant
employs 310 workers and the Tullamore plant has 90 workers.
The Company produces denim for the international market.
Prior to February, 1995, the Company operated a 7 day, 24
hour, subsidised canteen facility at the two plants.
Following a rationalisation programme in 1994/1995, the
Company withdrew the canteen facility in February, 1995, and
replaced it as follows:-
Longford Plant
- Free tea and coffee
- Vending machine for snacks
- Microwave for heating food
A local caterer also provides an un-subsidised service on the
day shift over 7 days. The cost of a main meal is £2.50.
Tullamore Plant
- No free tea/coffee
- Microwave for heating food
A service is provided on the first two breaks of the day
shift. The cost of a main meal is £2.00.
The Union claims that the loss of the canteen subsidy is £20
per week per worker. It is claiming £400 per worker as
compensation. The Company offered a total compensation of
£26,000 (approximately £60 per worker).
The dispute was referred to the Labour Relations Commission
and a conciliation conference took place on 26th September,
1995. There was no agreement reached between the parties and
the dispute was referred to the Labour Court on 29th
February, 1996, in accordance with Section 26(1) of the
Industrial Relations Act, 1990. A Labour Court hearing took
place on 29th March, 1996.
UNION'S ARGUMENTS:
3. 1. The removal of the subsidy has meant a considerable
increase in the cost of food to the workers, during the
limited period for which it is now available. It is
equivalent to a reduction in wages of £20 per week per
worker and has resulted in a major saving for the
Company. Workers should be properly compensated for
their loss.
2. The workers' contribution, following the rationalisation
programme, has resulted in a major increase in
efficiency in work practices. The Company is in a
position to reduce its costs to a level where it is now
quoting for orders that were previously lost. Other
companies have paid far greater compensation in
similar circumstances.
COMPANY'S ARGUMENTS:
4. 1. The European denim market had been experiencing a
continuing downward trend in prices over the last number
of years. The material is being produced more cheaply
in the Middle East and Asia, resulting in Atlantic Mills
Limited having to cut costs where possible. Withdrawing
the standard canteen facility, which cost the Company
£200,000 per year, was one of the means of cost savings.
Implementing this cost saving measure cost the Company
£133,000 in funding canteen redundancies. The cost of
the present canteen service was £54,000 in 1995.
2. Conceding the compensation claim would have serious
financial implications for the Company, given the
significant losses incurred in 1995 (£2.3 million). The
current service provided is more than adequate and
compares favourably with other companies in the textile
business.
RECOMMENDATION:
The Court has fully considered all of the issues raised by the
parties in their oral and written submissions. The Court, given
all of the circumstances of the case, recommends that the
employees concerned by paid £200 in full and final settlement of
this dispute.
~
Signed on behalf of the Labour Court
17th April, 1996 Tom McGrath
C.O'N./D.T. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.