Labour Court Database __________________________________________________________________________________ File Number: CD9650 Case Number: LCR15104 Section / Act: S26(1) Parties: C & C WHOLESALERS LIMITED (Represented by THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Payment rate for days worked after Christmas in Christmas week.
Recommendation:
Having considered the submissions, and noting the Company's stated
intention to continue payment in advance at Christmas, the Court
recommends:-
(a) The Union accepts the Company's proposals for working in
the week post Christmas
and
(b) The Company pay those employees who worked in the post
Christmas week at any time in the last five years an
ex gratia sum of £130 and those who did not work an
ex gratia sum of £50.
Division: Ms Owens Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD9650 RECOMMENDATION NO. LCR15104
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
C & C WHOLESALERS LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Payment rate for days worked after Christmas in Christmas
week.
BACKGROUND:
2. The Company is involved in the wholesale and distribution of
beers and soft drinks to the licensed trade and employs 125
workers nationally, 8 of whom are involved in the dispute.
Prior to 1995 the workers at the Thurles depot took annual
leave for the week after Christmas and if requested to work
were paid overtime rates to do so. However, the 1987
Company/Union agreement provides for payment at basic rate
and for annual leave to be taken at a later date. The Union
claims that the custom and practice for the past 20 years
should continue to apply in Thurles while the Company argues
that the agreement was intended to apply to all its
facilities and should, therefore, be implemented at the
Thurles depot.
The dispute was the subject of a conciliation conference
under the auspices of the Labour Relations Commission at
which the Industrial Relations Officer proposed a 'buy out'
of the overtime rate. The Company agreed to pay compensation
of twice the annual loss based on an average of earnings over
the past 5 years. This was subsequently rejected by the
workers. It was agreed to refer the dispute to the Labour
Court in accordance with Section 26(1) of the Industrial
Relations Act, 1990. A Labour Court hearing took place on
27th February, 1996 in Thurles.
UNION'S ARGUMENTS:
3. 1. The workers have been accustomed to receiving one week's
holiday pay with their wages prior to Christmas. Any
withdrawal of this payment would cause hardship at an
expensive time of the year. Any loss of overtime
earnings would have a similar effect.
2. The Christmas working hours have been established by
agreement with the Company and by custom and practice
for approximately 20 years. The cost of maintaining the
current practice would be minimal as it would affect
only about 25% of the workers after rationalisation.
3. Working practices vary in different locations throughout
the Company. A continuance of the present arrangement
in Thurles would not have any knock-on effects at other
locations.
COMPANY'S ARGUMENTS:
4. 1. Overtime rates are not applicable during the week after
Christmas per the Company/Union agreement. Basic rate
of pay is paid to workers at all other locations and it
is not appropriate to treat the workers in Thurles more
favourably than those at other depots. In the past the
Company had no alternative except to pay overtime
premia in Thurles to ensure deliveries.
2. The Company operates in a highly competitive market with
constant pressure to reduce prices to customers. To
remain viable the Company must operate from a sound cost
base and, therefore, cannot afford to pay overtime
premia where they are clearly not due. If the Company
cannot meet the customers' demands regarding price and
prompt deliveries, the customers will seek alternative
suppliers.
RECOMMENDATION:
Having considered the submissions, and noting the Company's stated
intention to continue payment in advance at Christmas, the Court
recommends:-
(a) The Union accepts the Company's proposals for working in
the week post Christmas
and
(b) The Company pay those employees who worked in the post
Christmas week at any time in the last five years an
ex gratia sum of £130 and those who did not work an
ex gratia sum of £50.
~
Signed on behalf of the Labour Court
14th March, 1996 Evelyn Owens
D.G./S.G. _____________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Ms. Dympna Greene, Court Secretary.