FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DAWN MEATS (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Bonus scheme.
BACKGROUND:
2. The Company, which employs 150 hourly paid staff, operates an abbatoir and boning plant in Midleton, Co. Cork. Since 1994 the Company has invested approximately £1,000,000 in modernising and upgrading the plant. A bonus system based on productivity was introduced in the abbatoir in September, 1995. As upgrading in the boning halls and packing areas was unfinished, fixed weekly payments in lieu of potential bonus earnings were paid to staff in these areas.
In March, 1996, the Company proposed a bonus scheme for the boning and packing areas which was initially rejected by the workers. Following a conciliation conference on 19th June, 1996, under the auspices of the Labour Relations Commission, the boning and trimming operatives accepted the proposed scheme while the packing operatives rejected it. The Union requested referral of the dispute to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Labour Court investigated the dispute in Cork on 30th October, 1996, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Company stated that packers would achieve a bonus of £50 to £55 per week, while boners would achieve substantially more. As packers are required to work in two halls, one of which is operated under contract at a higher production rate, a flat weekly payment should be made to them. In addition the Company's proposal does not provide for product which must be unpacked and repacked.
2. A productivity payment system is not appropriate to packers and skill differences should be reflected in a graded basic pay system. The Company should be in a position to improve on the flat payment of £35 per week which is currently being paid to the packers.
COMPANY'S ARGUMENTS:
4. 1. The Company cannot continue to pay fixed daily "top-up" payments in lieu of bonus and incentive payments which are in operation elsewhere in the plant. Numerous concessions have been made in the proposed scheme (details supplied to the Court) to secure and enhance benefit to the staff. A level of equity must be maintained as an earnings differential would be unacceptable to the other workers.
2. The proposed scheme would have provided bonus earnings for packing operatives of £55.00 on average per week over the last 15 weeks, had it been accepted. Boning and trimming operatives operating the same scheme have increased their earnings by £65.00 per week. This constitutes proof that the scheme delivers substantial pay benefits in return for effort and efficiency.
3. No valid rationale has been put forward by the Union for further increased payments to the bonus scheme. The Company will agree to a joint initial review with the Union on the operation of the scheme six months from the date of implementation.
RECOMMENDATION:
The Court, having considered all of the issues raised by the parties in their oral and written submissions, recommends that the scheme as proposed should be implemented on a trial basis for a period of three months.
During this period the operation of the scheme should be monitored to ensure that any difficulties arising are resolved.
The operation of the scheme should be reviewed at the end of this period.
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.