FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DAWN FRESH FOODS LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. (1) Introduction of sick pay scheme.
(2) 100% payment on recruitment.
BACKGROUND:
2. The Company is located in Fethard, Co. Tipperary and employs a staff of 70. It is engaged in the manufacture of soups, sauces and ready meals for both the home and export markets. Since 1994, the Company has invested £4 million in the upgrading of the plant and employee numbers have doubled.
On 14th March, 1996, the parties met to discuss a number of issues. The Union sought the introduction of a non-contributory sick pay scheme which would pay a benefit of six weeks with full pay. The Company was prepared to discuss a jointly funded scheme. Secondly, the Company/Union agreement specifies that 80% of the full-time permanent employees' rate will be paid on recruitment until the equivalent of 52 weeks, inclusive of holidays, is worked. The Union sought to reduce the probationary period to 130 days. The Company was willing to negotiate on the issue if the Union accepted the Company's position regarding the sick pay scheme.
As agreement could not be reached at local level the dispute was referred to the Labour Relations Commission. A conciliation conference was held in Clonmel on 6th June, 1996. Again, agreement was not reached and the dispute was referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on 1st October, 1996, in Clonmel.
UNION'S ARGUMENTS:
3. 1. Introduction of sick pay scheme: The workers are totally opposed to a contributory scheme. The introduction of such a scheme would cause dissent and division amongst the workforce, as with all sick pay schemes a minority of staff tend to abuse the system and, consequently, the remaining staff end up funding the others. The workers' claim for six weeks with full pay to be funded by the Company is in line with most schemes operating throughout the country, where benefits range from four weeks to twelve weeks with full pay.
2. 100% payment on recruitment: The current rate of 80% payment for a period of 52 weeks, or 2054 hours, discriminates against temporary workers. They perform to the same standard, and undergo the same physical and mental efforts, as permanent employees. The Union's proposal of a probationary period of 130 days is reasonable and the overall cost would not be prohibitive.
COMPANY'S ARGUMENTS:
4. 1. Introduction of sick pay scheme: The Company cannot afford the cost of a non-contributory scheme, particularly as experience shows that absenteeism increases on the introduction of sick pay schemes. However, it is willing to introduce a tightly controlled, jointly funded scheme on a 'pound for pound' basis with the employees. The Company will also cover the cost of starting up the scheme, administration costs and death-in-service cover. Contributory schemes are quite common and fall within the parameters of the Programme for Competitiveness and Work which states that "negotiations on these matters shall be governed by the capacity of the enterprise to absorb the costs involved and, additionally, in the case of sick pay schemes the possible implications for attendance".
2. 100% payment on recruitment: Many new recruits have no previous experience in the food or manufacturing sector and labour costs should reflect the contribution which workers are in a position to make. The recruitment rate was agreed with the Union some years ago and, in fairness to the workers, the Company includes overtime hours worked in calculating an employee's service. The Company is prepared to negotiate a reduction in the period of the recruitment rate subject to its position on the sick pay scheme being accepted.
RECOMMENDATION:
The Court has considered all of the issues raised by the parties in their oral and written submissions and makes the following recommendations:-
(1)Sick Pay Scheme- The Company should put forward proposals for the introduction of a sick pay scheme. These proposals should seek to harmonise sick pay arrangements in the Company.
The parties should fully discuss the proposals with a view to agreeing the implementation of a scheme. The scheme agreed should include a mechanism to review its operation and measures to ensure that attendance levels in the Company are maintained and improved.
(2)Recruitment Rate- The full rate of pay should be applied at the end of the probationary period (6 months).
Signed on behalf of the Labour Court
Tom McGrath
27th November, 1996______________________
D.G./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.