Labour Court Database __________________________________________________________________________________ File Number: CD95640 Case Number: LCR15066 Section / Act: S26(1) Parties: POWER SUPERMARKETS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
(a) Enhanced redundancy package. (b) Improved terms and conditions of employment.
Recommendation:
5. The Court has considered the detailed submissions from both
parties and recommends as follows.
(1) Redundancy package - The Court noting that a voluntary
situation pertains finds in favour of the Company's offer
of 3 weeks per year of service and statutory.
With regards to the formula to be applied to job-sharers
the Court recommends in the circumstances where the
scheme is operated strictly on the basis of one week on
and one week off that the method of calculating the sum
payable be on the basis of the full weekly rate. The
method of calculating service is agreed between the
parties.
(2) Sick leave - the Court recommends that in the
circumstances where any employee has availed of 12 weeks'
certified sick leave, sympathetic consideration be given
to granting uncertified sick leave to a maximum of 5
days.
(3) The Court does not recommend concession of the other
items claimed by the Union.
Division: Ms Owens Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD95640 RECOMMENDATION NO. LCR15066
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: POWER SUPERMARKETS LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. (a) Enhanced redundancy package.
(b) Improved terms and conditions of employment.
BACKGROUND:
2. 1. Power Supermarkets Ltd., trades as Quinnsworth, Crazy
Prices and Lifestyle. It employs over 7,000 staff in
seventy-five branches throughout the country.
2. The Union represents approximately seventy-five clerical
staff at the Company's Head Office.
3. The Company is proposing voluntary redundancies (2nd
phase) from within the administrative grades. This is a
consequence of computerisation within the Company. In
1994, the Company introduced Electronic Data Interface
(E.D.I.) which allows suppliers to send invoices etc.
directly to the Company's computer. Also, in 1995 the
Company introduced Remote Data Entry (R.D.E.). This
facility allowed each store to input their own details of
goods received by using of bar coding. The introduction
of the new technology has resulted in redundancies in the
Company.
4. The redundancy terms proposed by the Company, and which
are on a voluntary basis, is as follows:-
3 weeks' pay per year of service plus statutory
entitlements.
5. The Union is looking for improved redundancy terms as
follows:-
(a) 6 weeks' pay per year of service and pay in
lieu of notice.
(b) job-sharers to be paid redundancy on a pro-rata
basis to their full/part-time service.
(c) no redundancies to take place until the
contract/temporary staff were first let go.
(d) redundancies to take effect only as work
declines (i.e. no replacement of full-time
posts with contract/temporary staff).
(e) improved remuneration package for those staff
remaining (e.g. new grading structure - reduce
from 3 to 2 grades, improved pay scales;
service pay; improvements to sick pay scheme;
bonus payment).
6. The Company rejected the Union's claim. As no agreement
was possible between the parties, the dispute was
referred to the conciliation service of the Labour
Relations Commission. A conciliation conference was held
on 12th June, 1995. No agreement was possible at
conciliation and the dispute was referred to the Labour
Court on 7th November, 1995 under Section 26(1) of the
Industrial Relations Act, 1990. The Court investigated
the dispute on the 10th January, 1996 (the earliest date
suitable to both sides).
UNION'S ARGUMENTS:
3. 1. The workers have co-operated with the introduction of new
technology and the Company should recognise this.
2. The redundancy terms should be 6 weeks' pay per year of
service plus statutory entitlements plus pay in lieu of
notice.
3. The number of staff has reduced from 100 to 70 as a
result from the introduction of new technology. The
staff remaining should be compensated as their work will
be of greater value to the Company.
4. The Company should also provide an early retirement
package for those aged fifty-five or over.
5. Management should use the same formula for calculating
redundancy payments for job - sharers as operates at
present for whole-time employees.
6. The changes proposed will result in substantial savings
to the Company. Some of the savings should be passed on
to employees who remain with the Company by (a) reducing
present grades from 3 to 2, (b) improved pay scales, (c)
service pay, (d) improvements to sick pay scheme, (e) the
provision of a bonus scheme.
7. The Union also claims the introduction of a long service
increment for employees with 12/15 years service.
8. The current sick leave entitlements are as follows:- 5
days uncertified leave and 12 weeks certified leave.
However, if an employee is on certified leave for the 12
weeks, that employee is not entitled to the 5 days
uncertified leave.
The Union claims that the uncertified leave should not be
subsumed into the certified leave.
The Company should also improve the present sick leave
entitlements for staff with service in excess of 10 years
as follows:
after 10 years' service - 15 weeks' certified leave
" 15 years' service - 20 " " "
" 20 years' service - 26 " " "
COMPANY'S ARGUMENTS:
4. 1. The Company rejects the Union's claim for an improvement
in the voluntary severance package of (a) six weeks' pay
per year of service, and (b) payment in lieu of notice.
2. The terms of the Company's redundancy package are on a
voluntary basis and no pressure will be put on
individuals to accept the terms on offer.
3. A total of thirty-eight staff have so far accepted the
Company's redundancy package.
4. The redundancy package on offer is a generous one and is
ahead of anything paid by competing stores.
5. In 1981/82 staff received a 5% pay increase for
co-operation with computerisation and again in 1993/94
under Clause 3 of PESP received a further 3% for their
continued co-operation with computerisation.
RECOMMENDATION:
5. The Court has considered the detailed submissions from both
parties and recommends as follows.
(1) Redundancy package - The Court noting that a voluntary
situation pertains finds in favour of the Company's offer
of 3 weeks per year of service and statutory.
With regards to the formula to be applied to job-sharers
the Court recommends in the circumstances where the
scheme is operated strictly on the basis of one week on
and one week off that the method of calculating the sum
payable be on the basis of the full weekly rate. The
method of calculating service is agreed between the
parties.
(2) Sick leave - the Court recommends that in the
circumstances where any employee has availed of 12 weeks'
certified sick leave, sympathetic consideration be given
to granting uncertified sick leave to a maximum of 5
days.
(3) The Court does not recommend concession of the other
items claimed by the Union.
~
Signed on behalf of the Labour Court
Evelyn Owens
23rd January, 1996 ------------
L.W./U.S. Chairman
NOTE:
ENQUIRIES CONCERNING THIS RECOMMENDATION SHOULD BE ADDRESSED TO
MR LARRY WISELY, COURT SECRETARY.