FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TALLAGHT COLD STORE LIMITED (REPRESENTED BY MANAGEMENT SUPPORT SERVICES) - AND - MARINE, PORT AND GENERAL WORKERS' UNION AUTOMOBILE, GENERAL ENGINEERING AND MECHANICAL OPERATIVES UNION DIVISION : Chairman: Mr McGrath Employer Member: Mr Pierce Worker Member: Mr Walsh |
1. Phase 3 of the Programme for Competitiveness and Work (PCW).
BACKGROUND:
2. The Company now operates solely from a single store in the Cookstown Industrial Estate, Tallaght. A second storage facility, in Cabra, closed in March, 1996.
The dispute concerns the Unions' claim for payment of Phase 3 of the PCW, due from 1st April, 1996. The Company sought to introduce a number of changes (full details supplied to the Court) which it hoped would make it more viable. Meetings took place between the parties on a number of occasions between May and September, 1996. No agreement was reached regarding the Company's proposals. The Company has indicated that, in the present circumstances, it cannot concede any cost-increasing claims until July, 1998.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place on 24th October, 1996. As the parties did not reach agreement the dispute was referred to the Labour Court on 4th November, 1996 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 28th November 1996.
UNIONS' ARGUMENTS:
3. 1. In 1994, during Phase 1 of the PCW, the Unions agreed to a comprehensive review of work practices, including a number of redundancies. In the agreement, the Company indicated a commitment to the remaining workers. The Company is now refusing to pay Phase 3 of the PCW.
2. At meetings in May and July, 1996, the Unions indicated that they were prepared to negotiate agreement of most of the proposed Company changes. In a letter dated 8th August, 1996, the Company stated that it had agreed to amend the original proposal regarding payment of Phase 3 of the PCW, with due regard to the economic and commercial circumstances of the Company. Despite requests from the Unions, the Company has failed to provide figures which would establish if it is profitable or not.
3. Over the past 5/6 years, the Unions have agreed to major changes in relation to terms and conditions of employment. The number of permanent workers has been constantly reduced and replaced with contract/casual workers. The workers deserve to be paid Phase 3 of the PCW for the changes already implemented.
COMPANY'S ARGUMENTS:
4. 1. The cold storage industry has been in decline in recent years. The decline is as a result of a drop in demand, and the excessive amount of storage space now available. The Company had to close down its site in Cabra because of the reduction in demand. Storage rates have dropped by at least one third, and occupancy has reduced by 50% over the last 2 years. Costs have continued to rise over the corresponding period.
2. It is necessary for the Company to implement changes if it is to remain competitive. One of the main changes would refer to flexibility in the workforce. The Company hoped to implement these changes by August, 1996. It indicated that Phase 3 of the PCW would be paid, provided that the necessary changes were agreed to by the Unions. Despite meeting with the Unions on a number of occasions, this agreement was not forthcoming. Clause 3 of the PCW gives the Company the right to negotiate where the economic or commercial circumstances warrant it. Those circumstances currently prevail.
RECOMMENDATION:
The Court, having considered all of the issues raised by the parties in their oral and written submissions, recommends that the Company pay the outstanding phases of the PCW, and that the Company and the Unions discuss the Company proposals and seek to reach agreement.
In the event that the parties have not concluded an agreement within a period of 3 months from the date of issue of this recommendation, the Court will review progress and issue a recommendation.
Signed on behalf of the Labour Court
Tom McGrath
17th December, 1996______________________
C.O'N./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.