FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CARTON BROTHERS LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Payment of overtime on the consolidated rate of basic pay plus shift allowance.
BACKGROUND:
2. The issue before the Court concerns the calculation of payment of overtime on the consolidated rate of basic pay plus shift allowance for eight workers in the offal rendering section of the Company. The section processes offal from the main processing plant.
The offal rendering plant operates on two rotating eight - hour shifts plus the occasional third night shift when required as follows:-
- Day shift - 7.30 a.m. - 3.30 p.m.
Evening shift - 3.30 p.m. - 11.30 p.m.
Night shift - 11.30 p.m. - 7.30 a.m. (when required)
The shifts are manned by 1 chargehand and 2 operatives per shift. The occasional night shift is manned by 1 chargehand and 1 operative.
The rates of pay per 39 hour week are - chargehand £313.43 - operatives £278.43.
Shift allowance is paid at 21.6% of basic and the above rates apply Monday - Friday.
Overtime is paid as follows:-
First 4 hours - basic x 1.5
Additional overtime - basic x 2
Overtime occurs mainly on Saturdays. Shift premium has never applied to overtime payments.
The Union claims that the calculation of the consolidated rate of pay for overtime purposes is standard practice throughout the industry. The Company rejected the Union's claim and stated that the claim was in breach of the Programme for Competiveness and Work (PCW).
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 the 6th March, 1996 but no agreement was reached. The dispute was referred to the Labour Court under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 25th June, 1996.
UNION'S ARGUMENTS:
3. 1. Payment of overtime based on the consolidated rate of pay is standard practice in the industry. Other sections of the Company use this method of calculating overtime.
2. The Company can afford to concede this claim. The cost of meeting the claim would be minimal.
3. The Labour Court, has in the past, issued recommendations in favour of calculating overtime for shift workers based on the consolidated rate of pay. A recent Court Recommendation - LCR14860 refers.
4. The Company should treat all its workers on an equal footing. Three out of four sections of the Company pay overtime based on the consolidated rate of pay.
COMPANY'S ARGUMENTS:
4. 1. The claim is cost increasing and is therefore precluded under the terms of the PCW.
2. Labour Court Recommendation LCR14860 recommended payment of overtime based on the consolidated rate of pay in the Feed Mill section. It did not apply to the Offal Rendering Section.
3. Overtime based on the consolidated rate of pay has never been paid in the Offal Rendering Section.
4. The Company is not in a financial position to concede this claim. Concession of the claim could threaten the viability of the Company.
RECOMMENDATION:
The Court having considered all of the views of the parties finds that there is merit in the case put forward by the Union.
The claim however, is cost increasing and consequently prohibited by the PCW at this time.
The Court recommends that the matter be addressed at the conclusion of the current agreement.
Signed on behalf of the Labour Court
Tom McGrath
4thJuly, 1996______________________
L.W./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.