FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : POWER SUPERMARKETS LIMITED - AND - MANDATE DIVISION : Chairman: Mr McGrath Employer Member: Mr Keogh Worker Member: Mr Rorke |
1. Appeal against Rights Commissioner's Recommendation No. RC353/97.
BACKGROUND:
2. The dispute, which has arisen in the Crazy Prices Supermarket, Janelle Shopping Centre, Finglas, concerns the transfer of the night packing operation, involving 6 sales assistants, to days, resulting in the loss to the sales assistants of their night premium (+1/4). The transfer of the night packing operation to days is a cost-saving measure by the Company in response to declining sales resulting in rising wages as a percentage of sales. The Union sought a compensation package in excess of that offered by the Company and the matter was the subject of investigation by a Rights Commissioner. In his Recommendation he found, and recommended, without precedent, as follows:
"As this is a cost saving exercise a solution other than a "once-off" is not considered appropriate. I therefore, recommend as following:
(a) the transfer of those involved to day work of 39 hours per week with
- no flexi-time
- Saturdays off
- no till duties;
(b) three days' paid leave as a period of adjustment;
(c) compensation of one and a half years' the actual loss;
(d) the claimants to have first option for night pack if re-introduced."
The Rights Commissioner's Recommendation was appealed, by the Union, to the Labour Court, on the 5th of June, 1997, in accordance with Section 13(9) of the Industrial Relations Act, 1969. The Court heard the appeal, on the 14th of August, 1997.
UNION'S ARGUMENTS:
3. 1. The workers concerned are happy to continue on the night packing operation. However, the Company is proposing a change which would result in losses of £40-£60 per week to the workers concerned. Additionally, they are expected to work more hours for less money, with a once-off compensation figure applied.
2. In 1987, the same employer eliminated the night packing operation in its Lucan branch and a £700 lump-sum was paid as compensation together with movement of workers along the incremental scale in order to maintain earning levels. When the night packing operation was adjusted in the Ballymun branch 14 months later, lump-sum payments, scale point improvements and other compensation measures were conceded to the staff involved.
3. The workers concerned should be compensated as follows:-
(1) a transfer to day-work of 39 hours per week (not flexi);
(2) three days' paid leave as a period of adjustment;
(3) implementation of other items not in dispute, i.e.,
Saturdays off
No till duties
First option for night packing, if re-introduced;
(4) One late night overtime per worker per week;
(5) Compensation of 3 years' the actual loss involved;
(6) Movement to the top of the wage scale for the worker not yet at that point.
COMPANY'S ARGUMENTS:
4. 1. Due to circumstances outside the Company's control, sales have fallen in Janelle. There is now no need for a night packing shift. This is not in dispute between the parties.
2. The Company has been fair and reasonable in its dealings in relation to the matter offering two options to the staff, a transfer to day working with compensation or an agreed severance arrangement.
3. Notwithstanding the Rights Commissioner's Recommendation to double the Company's offer of compensation, the Company accepted this in good faith, to bring the matter to a conclusion.
4. The Company believes the recommended compensation for loss of shift premium is generous. It compares favourably to many recommendations of the Labour Court in the past (details supplied).
5. The Company would be prepared, as a gesture towards resolving the dispute, to place on the top of his scale, the worker who is not currently on the highest point.
DECISION:
The Court, having considered all of the issues raised by the parties in their oral and written submissions, upholds the Recommendation of the Rights Commissioner.
The Court so decides.
The Court notes that the Company is prepared to extend incremental progress to the employee not on the maximum at present.
Signed on behalf of the Labour Court
Tom McGrath
25th of August, 1997______________________
M.K./S.G.Deputy Chairman
NOTE
Enquiries concerning this Decision should be addressed to Michael Keegan, Court Secretary.