Labour Court Database __________________________________________________________________________________ File Number: CD95408 Case Number: LCR15059 Section / Act: S26(1) Parties: WATERFORD FOODS PLC - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION |
Rationalisation of shift work agreement.
Recommendation:
1996
Division: Mr McGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD95408 RECOMMENDATION NO. LCR15059
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
WATERFORD FOODS PLC
AND
AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Rationalisation of shift work agreement.
BACKGROUND:
2. 1. Waterford Foods, Dairy Division, Dungarvan, is a
subsidiary of Waterford Foods Plc. It is engaged in the
manufacture and sale of dairy products such as Milk
Powders, Butters and Casein at the Shannon Site in
Dungarvan. Since 1986 milk volumes processed at the
Dungarvan plant has fallen from 100m gallons to 64m
gallons in 1994.
2. In 1987, arising from Labour Court Recommendation
(LCR11399 refers) a major rationalisation of shift
working operations at Dungarvan was agreed - known as
the "16 Point Plan". Since 1987 there has been
continuous agreed changes to the Plan.
3. In September, 1994, the Company put forward further
rationalisation proposals which will change the
conditions of employment for the seventy shift workers
at the Dungarvan plant. The Union rejected the
Company's proposals. (The Company's restructuring plan
is attached at Appendix A. The Union's claim for
compensation is attached at Appendix B).
As no agreement was possible between the parties it was
agreed by both sides to refer the dispute to the Labour
Relations Commission. A number of conciliation
conferences (6) were held in Dungarvan between the 4th
May, 1995 and the 7th July, 1995. Some progress was
made at conciliation but a number of issues remained
unresolved. Both sides agreed to refer the outstanding
issues to the Labour Court under Section 26(1) of the
Industrial Relations Act, 1990. The Court heard the
dispute on 11th July, 1995.
4. At the Court hearing on the 11th July, 1995 it was
established that the Union had substantially changed its
position from that given at conciliation. The Court
decided that as the Union had altered its position since
conciliation that the hearing could not go ahead in
accordance with the terms of the Industrial Relations
Act, 1990 and referred the dispute back to the Labour
Relations Commission. A conciliation conference was
held in Dungarvan on the 4th September, 1995. No
agreement was possible at conciliation. The dispute was
referred back to the Labour Court under Section 26(1) of
the Industrial Relations Act, 1990. The Court
investigated the dispute on 23rd October, 1995.
UNION'S ARGUMENTS:
3. 1. The Company is proposing the elimination of many
existing agreements covering shift workers and relief
shift workers which the Union is opposed to.
2. The Company's proposals would, if implemented, cause
serious financial hardship for our members.
3. There has never been an industrial relations stoppage in
relation to the ongoing rationalisation at the Dungarvan
plant. Furthermore, any pay increases achieved was
through the various national pay agreements such as the
PNR, PESP and the PCW.
4. The Union is very concerned that the Company is trying
to introduce contract cleaning into the plant. This
move will be strongly resisted by the Union.
5. The Union is prepared to agree to a complete flexibility
agreement in return for a guarantee of security of
employment for its members. It would also give a
commitment to reducing costs where possible.
6. The main outstanding issues of disagreement with the
Company can be summarised as follows:-
Relief Operators
1. The changes proposed for the reduction in the
number of relief operators is not acceptable. A
minimum of 11 relief operators is necessary in the
plant.
Annual Leave
2. The proposal that no annual leave be taken between
mid-April and 1st July in any year is in breach of
the existing agreement operating in the plant.
Shift Operators
3. The Company is proposing that on a 3 shift
operation, if one operator does not report for
duty, then the other two operators would be obliged
to provide cover and work 12 hour shifts. This
could be a seven day operation, but overtime will
only be paid at flat rate. This proposal is
rejected by the Union.
Casual Workers
4. It is proposed by the Company that for eight weeks
- four weeks at beginning of the peak period and
four weeks at the end of the peak period that
permanent staff work up to 3 shifts per week at 12
hours per shift obviating the need to employ casual
workers. The Union considers that it would be more
appropriate to employ the casual workers for the
eight weeks rather than have the permanent staff
doing excessive overtime.
Guaranteed Overtime
5. The Company has offered £500 to buy out the
guaranteed overtime and to give the casual workers
a pro rata payment at the rate of £62.50 per month
worked to a maximum of eight months. The offer of
£500 is unacceptable to the Union. The
compensation should be based on the agreed formula
plus payment of £1,500 per employee, casual or
permanent for the loss of the guarantee.
Mass Call
6. The Union is opposed to the company's proposal to
buy out "Mass Call". It has always been a part of
the shift workers' conditions of employment. It
provides cover over seven days and should not be
eliminated.
Training
7. The Company is proposing that plant on production
6/7 days per week (Peak Period) "person training"
will get 45 hours per week, (i.e., 5 hours
overtime) if plant is on 5 days week operation
training will get 42 hours per week (2 hours
overtime). The Union wants the current 48 hours
for training to be maintained.
Annual Maintenance
8. The Union is opposed to any changes to the current
maintenance agreement.
Milk Production
9. The present agreement is for 12 hour cover to be
provided if required, and the Union is opposed to
any changes to this agreement.
Shift Rate
10. The Company is proposing that shift rate will only
apply to operators working shifts. Shift rate will
not apply where a plant has ceased production and
is on annual wash-up not involving shift operation.
The Union rejects the Company's proposal and wants
the shift rate to apply.
Hand-Over Time
11. Hand-over time will apply where an operator meets
the operator from a previous shift. However, if
there is no operator on previous shift then
hand-over time will not apply. The Union wants the
"Buy Out Formula" to apply if there is a financial
loss to the operator.
Old Boiler House
12. The Company is proposing that the Old Boiler House
duties be carried out by suitably trained personnel
at flat time. The Union will not accept any
changes to the current agreement on this matter.
Boiler Blowdown Call-Outs
13. The Company is proposing to buy-out one call-out
per day. The remaining call-out to be carried out
at evening time. If the boiler operator works
Saturday or Sunday on the 8-4 shift then no
call-out will be paid for that Saturday or Sunday.
When plants are off production during the Winter,
and steam is not required on Monday morning,
boilers will be taken off-line over the week-ends.
In this event no call-outs will be paid.
Blowdowns will be reduced from 2 to 1 for 26
Sundays and 13 Saturdays.
The loss of call-outs in the Company's proposal,
including the right to call-out for the balance of
the year, will be bought out for £1,000. The Union
is seeking compensation of £2,260 where there is no
boiler blowdowns carried out between October and
March.
If an operator is working 6/7 days per week then he
should remain with his plant as per the current
agreement.
COMPANY'S ARGUMENTS:
4. 1. The reduction in the volume of milk processed at the
Dungarvan site is mainly due to quota cuts, competition
for milk from other sites within the group and the
reduction in contributions from products made on site,
which are mainly powders, casein and butters. The
reduction in milk volumes results in excess labour
available than is required and the need to reduce costs
substantially during the winter period.
2. The Company had to close the Dungarvan plant last Winter
for ten weeks because of the poor return from products
manufactured at the site.
3. The Company introduced a voluntary lay-off programme
last Winter. It made substantial payments to encourage
employees to leave the plant for the ten week shutdown.
The Company will not be in a position to continue making
substantial payments for future Winter shutdowns.
4. The situation for the Dairy Division at the Dungarvan
plant is very serious. There is no immediate prospect
of the situation improving.
5. The need for efficiency at the Dungarvan plant is
essential if it is to survive. The plant must pay
competitive milk prices otherwise suppliers will
transfer their milk to other milk processors.
6. Cost reduction programmes have taken place in other
sections of the organisation such as Kilmeaden Cheddar,
Dairyland, Snowcream, Trading Division and also
throughout the whole organisation.
7. There is intense competition for capital investment from
all sections of the organisation. Capital approval will
only be given to the most efficient plants. It is
imperative that costs at the Dungarvan plant be more
competitive so as to attract further investment there.
8. It is essential that the Company's revised "16 Point
Plan" for shift working/practices be accepted by the
Union to enable the Dungarvan plant to become more
efficient and cost effective.
9. The Company has no plans to introduce contract cleaning
into the plant as suggested by the Union.
RECOMMENDATION:
The Court having considered the oral and written submissions of
the parties recommends that the proposals as put forward by the
Company be accepted subject to the following modifications:-
REVISED SHIFT WORKING ARRANGEMENTS/PRACTICES
1.1. 2 weeks holiday per plant operator at overtime rate.
Remaining cover to be at flat time. 2 weeks holiday at
peak season, but no holidays between mid-April and 1st
July.
1.2. Re unscheduled time off (1c) the Company proposals to
apply, the parties to note however these arrangements
apply only to planned scheduling. Where it is unplanned
overtime will be paid.
1.3. Annual Maintenance to remain as per existing agreement.
1.4. 12 hour cover to apply for a maximum of 4 weeks at the
start of the season and 4 weeks at the end of the season.
1.5. Loss of call outs to be bought out. £1,000 to be paid
subject to acceptance of this recommendation.
SHIFT SYSTEMS/PROPOSALS
2.1. Increase in re-deployment figure to £3,000 as proposed by
the Company.
2.2. The lead in payment to be increased to £2,000.
2.3. The Company offer to be increased to 1.5 years loss based
on comparison of earnings between 1995/1996 and
1994/1995.
2.4. There should be complete flexibility as currently applies
under the present agreement.
2.5. Scheduled cover to be paid at flat time, unscheduled
cover to be paid at overtime rates.
2.6. It is the view of the Court that where manning levels on
the plant are unchanged no payment should be made.
Reduction of the manning level on plant to attract the
£650 per man compensation for remaining staff.
The Court has considered the question of the duration of the
agreement. Given the changes in European Agricultural Policy
together with changes which will require to be considered as a
consequence of imminent hours of work legislation, it is the view
of the Court that the parties should further consider the duration
of the agreement at a later date.
The Court recommends the parties review the matter at the end of
1996.
~
SIGNED ON BEHALF OF THE LABOUR COURT
21ST DECEMBER, 1995 TOM MCGRATH
L.W./D.T. _______________
DEPUTY CHAIRMAN
NOTE
ENQUIRIES CONCERNING THIS RECOMMENDATION SHOULD BE ADDRESSED TO
MR. LARRY WISELY, COURT SECRETARY.
A P P E N D I X A
The following are the restructing proposals put forward by the
Company.
1. Relief to be removed/introduced into shift pattern. Any
relief left in system to have no overtime guaranteed.
3 emergency reliefs covering long-term illness for peak
season only.
Peak Period
1 week's holiday per plant operator at overtime rate.
Remaining cover to be at flat-time. 2 week's holiday at peak
season, but no holidays between mid-April and 1st July.
Off-Peak Period
2 week's holidays to be covered by other operators, i.e.,
redeployed.
As production reduces in plants, available operators will be
transferred into plants working 6/7 days per week so as to
enable all plants to operate a 40/42 hour week.
Unscheduled Time Off
The operators concerned to decide the shift patterns they
wish to work i.e. 5, 6 or 7 day week.
2. Overtime guarantees to be removed, i.e., 5 hours per week to
be bought out on the following basis:
15 weeks X 7.5 hours X appropriate rate X 1.5 - formula for
buyout.
£500 to be paid for the elimination of the rights to the 5
hours overtime during remainder of season.
If casual employees are not working during this period, they
will not be entitled to any buyout.
Casual employees will be paid the £500 on a pro-rata basis at
the rate of £62.50 per month worked. Service of 2 weeks or
more over completed months will be rounded up to a full
month.
3. Mass Call to be eliminated and bought out as follows:
3-Shift rota
£475 for Relief Man + £475 to be divided among remaining 3
operators.
4-Shift Rota
£950 to be divided among 4 operators.
It is agreed that at the option of the staff the shift
changeover may be moved to Friday from Sunday.
4. Meal allowance for early start/additional hours work to be
removed. £50 nett payment.
5. Existing shift sliding scale at the end of the season to be
eliminated and replaced with the following for both casual
and permanent employees:
A shift countdown of 5 weeks worked 8.00 a.m. to 4.00 p.m. at
shift rate will apply at the end of shift working, provided a
minimum of 26 weeks has been worked on shift and provided the
payment does not exceed 52 weeks' shift rate in the year.
4 weeks loss of shift rate to be bought out for permanent
employees.
6. Training
Training will in future be based on the actual training
requirements for the plant and the operator concerned, having
regard to the level of competency and experience of the
operator.
In the case of first-time/initial training, operator will
sign off each stage of training as he/she goes along as at
present.
If plant on production 6/7 days per week (Peak Period) person
training will get 45 hours per week (i.e. 5 hours overtime).
If operator on plant 5 days per week (Shift System B or
equivalent) then operator training will get 42 hours per week
(2 hours overtime).
If plant on production 5 days only, operator training will
get 40 hours per week (no overtime).
Management have the right to decide whether trainee is on
training or on other productive work as required.
7. Annual Maintenance Period guarantees to be eliminated. In
future where a piece of equipment has been maintained, at any
time other than when an operator is present, the maintenance
person can check to see if it has been maintained/fitted
properly.
This can only involve start/stop of the item that has been
maintained, and where this is part of a computerised system,
will not involve the maintenance person operating the
computer. It is agreed that the person carrying out
maintenance or any person other than the operator, will not
operate the item concerned on product/water/steam.
8. If no charge hand available then the evaporator changes
atomiser wheel, but will not be held responsible for
evaporator while changing wheel.
9. Operators to work 12 hour shifts on shoulder of season on
plants coming on or off stream. Operators to get 5 X 8 hours
i.e., 40 hours flat-time/week. When plants on production for
3 days/week or less, operators work 12 hour shifts, i.e.,
first 8 hours at flat-time and next 4 hours at overtime rate.
When plant on production the decision whether to work 12 or 8
hour shifts is solely at management's discretion.
Maximum of 4 weeks at start of season.
Maximum of 4 weeks at end of season.
10. On the basis that shift rate applies only to operators
working shifts, shift rate will not be paid where a plant has
ceased production and is on annual wash-up or C.I.P., not
involving shift operation.
11. Hand-over time to apply where an operator is meeting the
operator on the previous shift, i.e., if no operator on
previous shift, then no need for change-over time.
12. With the elimination of the C.H.P./Boiler House Relief, the
Old Boiler House duties will be carried out by suitably
trained personnel at flat-time. Personnel and duration
required for duties to be decided by Management.
13. Management propose to buyout one call-out per day. The
remaining call-out to be carried out at evening time. On a
Saturday or Sunday if boiler operator works any part of the
8-4 shift then no call-out will be paid for that Saturday or
Sunday.
When plants are off production during the Winter, and steam
not required early on Monday morning, then boilers will be
taken off-line over the week-end. In this event, no
call-outs will be paid.
Blowdowns will be reduced from 2 to 1 for 26 Sundays and 13
Saturdays.
The loss of call-outs involved in the Company Proposal,
including the right to call-out for the balance of the year,
will be bought out for £1,000.
14. Double time payment for operators who start before 8.00 a.m.
to be eliminated. Agreed that double time payment for those
requested to come in before 8.00 a.m. to remain, except in
the case where night-shift operator has been allowed to work
another shift in lieu of working night-shift. Hours worked
before 8.00 a.m. in this case to be paid at flat-time for 8
hours, e.g., 6.00 a.m. - 2.00 p.m.
15. Butter Proposals
(15A) Shift working in the new dairy to suit production
demands.
(15B) F.M.G. operator to put butter from F.M.G. and
Benhill machines into the cold store.
(15C) F.M.G. operator to wash all the new dairy floor for
the full year.
(15D) During the period of day work in the off season the
butter machine (HCT3) to be operated by the more
senior butter-makers.
(15E) Reorganise the duties of butter Stock Controller in
conjunction with functions to be fulfilled in the
powder, packaging and chemical storage area.
16. Milk Intake Proposals
(16A) Shift Rota for peak period, third week-end March to
second week-end August:
6 - 14 and 14 - 22 hours.
One man per shift.
Separator room operator to work 4 hours per day in
the Intake as part of his main duties.
Extra man to be included at week-ends to provide an
overlap shift, i.e., 10 - 6 and to work elsewhere
Monday to Friday.
(16B) Shift Rota for off peak:
Shifts 7 - 15 and 14 - 22 hours.
One man per shift.
During the above off-peak period one shift may be
required at week-ends, this will be covered by one
man with no relief man required.
(17) Buy-out formula at present 50/52, now to be 1.5
times the identified loss.
UNION'S CLAIM FOR COMPENSATION TO THE COMPANY'S PROPOSALS
A P P E N D I X B
1.1 Payment of 1 extra grade, the value of which is
approximately £6.50 per week on basic rate.
1.2 Improved Re-Deployment Payment:
The current Re-Deployment Payment is £2,750 - At local
negotiations the management increased same to £3,437.50.
1.3 Payment of a lead-in payment:
Union is seeking a payment of £4,000 while management has
offered £1,750 which is the current amount.
1.4 Union is seeking loss of earnings based on a comparison of
the first full year of operation of the new system, with
the last full year of the old system (i.e. April 1997 -
April 1995) has been claimed at the rate of 1 year's loss.
Where less than 52 weeks has been worked, the comparison
will be on the basis of like with like (e.g. 40 weeks one
year, with same 40 weeks in the other year).
The Company has offered to pay 1 year's loss based on a
comparison of earnings between the years 1995/1996 and
1994/1995, and this is totally unacceptable to our members.
1.5 The Union is claiming that operators will operate their own
plants when on 7 days.
1.6 The Union's position is that all overtime worked on relief
must be paid at overtime rates.
1.7 The Union is claiming as per established practice, payment
of £650 each compensation to remaining staff for working
one operator less on the plant.
1.8 The Union has sought a minimum period of 5 years for any
new agreement.