FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : WATERFORD CRYSTAL - AND - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Compensation for loss of earnings - buyout formula.
BACKGROUND:
2. Prior to the Comprehensive Agreement dated 24th of June, 1990, the formula for compensating workers who suffered loss of earnings was on the basis of a 3-year formula. Following the Agreement, compensation was based on a formulae ranging from 26 weeks to 52 weeks.
Arising from the implementation of the Tank Furnace project,, in 1994, all employees in the area are to work an average of 33.6 hours per week, i.e., a reduction of 5.4 hours on the previous 39 hours per week. The Company has offered compensation based on a 52-week formula (hourly rate x 5.4 hours x 52 weeks). The Union, on behalf of 105 members, is seeking compensation on the basis of a 156-week formula.
The dispute was the subject of conciliation under the auspices of the Labour Relations Commission, at which agreement was not reached. The dispute was referred to the Labour Court, on the 20th of April, 1996, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 2nd of May, 1996.
UNION'S ARGUMENTS:
3. 1. In the past, when it was experiencing financial difficulties, it may have been appropriate for the Company to calculate compensation for loss of earnings on the basis of a 52- week formula. Despite the fact that a significant number of workers have been compensated in one form or another under the 52-week formula, the Union does not accept this is fair, given the now profitable position of the Company.
2. The losses incurred by the workers concerned will be ongoing while the Company's compensation is only a once-off payment. Accordingly, it is reasonable to seek to have the formula increased from 52 to 156 weeks.
COMPANY'S ARGUMENTS:
4. 1. There are no savings to the Company arising from the manpower required on the Tank Furnace. The operation of 7-day continuous cycle shift working means the Company incurs the cost of 5 workers @ 33.6 hours each rather than 4 workers @ 42 hours each.
2. Any new compensation formula would damage the efforts, since 1987, to restore the Company to competitiveness. The Company must continue to maintain vigilance on cost issues and avoid the wasteful use of resources. In order to become and remain truly competitive, and to balance that with responsibility to employees, the Company believes the 52-week formula to be fair and reasonable.
RECOMMENDATION:
Having considered the submissions, the Court is of the view that the formula proposed by the Company is reasonable and, in the circumstances, should be accepted by the Union.
The Court so recommends.
Signed on behalf of the Labour Court
Evelyn Owens
20th May, 1996______________________
M.K./S.G.
Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.