FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CARA PARTNERS LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Change to four shift operation.
BACKGROUND:
2. The Company is a bulk pharmaceutical manufacturer which produces a single product, a medicine extracted from leaves. It has operated in Cork since 1979 and employs a total workforce of 127, of whom 68 are represented by the Union.
The Company has decided that because of an increasingly competitive market it will have to change from its present 3 shift operation to 4 shift. The Union is seeking the following as compensation for the change:-
1. 5% lump sum for all SIPTU members
2. Compensation for loss of overtime
3. 38% shift premium
4. A request to guarantee working 6 bank holidays annually
(excluding Christmas and New Year)
5. 4 extra days annual leave for people on 4 shift cycle
4 shift working would involve a 42 hour week. The Union wants the 41st and 42nd hours to be paid at treble time. The Company is offering double time. Another issue involves 3 maintenance helpers who at present work 2 out of every 3 Saturdays. Moving to 4 shift work will mean that the maintenance helpers will work 1 in 4 Saturdays. The Union wants the helpers to work either 2 out of 4 Saturdays or a Saturday and Sunday in every 4 weeks.
The parties discussed the dispute over a number of months. After failing to reach agreement the dispute was referred to the Labour Relations Commission and a conciliation conference took place on 3rd July, 1996 but again no agreement was reached. The dispute was referred to the Labour Court on 16th July, 1996, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 15th August, 1996.
UNION'S ARGUMENTS:
3. 1. In 1991 the Company introduced 4 shift work on a temporary basis. A once-off payment of 5% of basic pay plus shift premium was paid then and should also be paid in this case.
2. Four additional days leave for working a 4 shift cycle in is line with other comparable companies who introduced a 4 shift cycle. Some companies have up to 30 days annual leave.
3. Comparable companies in the industry have shift premium of between 35% - 44%. The 38% being sought by the Union is not unusual.
4. At present, unit two workers earn approximately £3,000 per year by working 1 Saturday in 3 as guaranteed overtime. Moving to 1 Saturday in 4 will mean a loss of £850 per year to each worker. Payment of the 41st and 42nd hours at treble time would go some way towards compensating the workers. The three maintenance helpers should work 2 out of 4 Saturdays although it will mean a loss to them. The Company's proposed increase in shift premium from 25% to 33 1/3% will not compensate the loss. Shift premium is there to cover the unsociability of shift work.
COMPANY'S ARGUMENTS:
4. 1. The Company operates in an extremely competitive market. Prices have fallen by 40% in the last few years. The Company must move to a 4 shift system if it is to remain viable.
2. There is a Company/Union agreement which states that employees must work a 2, 3 or 4 shift cycle if it is required. The agreed premium payment for 4 shift work is
33 1/3%. The Company cannot afford to pay 38%.
3. The introduction of the 4 shift work will have significant costs for the Company - an estimated £100,000. There will be 11 new workers on 4 shift and 33 workers presently on 3 shift will move to 4 shift. All workers moving to 4 shift will have increased salaries. These workers are already on very high salaries - an average of £34,000 per annum. They will also have increased pension benefits.
4. The three maintenance helpers will have increased salaries by moving to 4 shift work despite having less Saturday overtime. There is no guaranteed overtime for Saturdays.
RECOMMENDATION:
The Court, having considered the submissions from the parties, recommends as follows:-
That the Union accepts the introduction of a four cycle shift on the following
conditions;
(1) Payment of a lump sum of 5% of basic pay and shift for all
employees.
(2) Three extra days holidays.
(3) A new shift premium for four cycle shift of 34%.
(4) Agreement to work all public holidays except Christmas/
New Year.
In view of the conflicting evidence as to overtime earnings, the Court further recommends that the parties agree to review the situation at the end of a 12 month period when actual hours overtime worked will be available.
The Court notes that a further matter in dispute was agreed by the parties would be pursued separately before a Rights Commissioner.
Signed on behalf of the Labour Court
Evelyn Owens
22nd August, 1996______________________
C.O'N./D.T.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.