FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : WESSEL INDUSTRIES LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Keogh Worker Member: Ms Ni Mhurchu |
1. Changes in work organisation/redundancy.
BACKGROUND:
2. The Company is part of the Wessel Group of companies which operate 3 factories in Ireland - South Circular Road, Finglas and Longford. The dispute concerns the factory in South Circular Road which exclusively manufactures automotive cable since 1990. There are currently 68 workers employed at the plant. The Company is seeking a number of changes in work practices, as it claims that there has been a sharp decline in business in the last 2 years. Following agreement on some changes, the following issues are still outstanding:
(1) Redundancy terms:
The Company is offering a redundancy package of 3.5 weeks' pay per year of service plus statutory entitlements, subject to a maximum of 18 months' salary. The Union is seeking 7 weeks' pay per year of service with no capping.
(2) Shift working:
The Company wishes to introduce 3-cycle shift working. The Union is agreeable but is seeking one additional days annual leave, V.H.I. cover and meal vouchers for nightshift workers.
(3) Elimination of 6 days' annual leave:
The Company currently operates a 40-hour week and workers receive an extra 6 days' annual leave for working the extra hour each week. The Company wants to operate a standard 39-hour week which would eliminate the 6 days' annual leave. The Union wishes to retain the 40-hour week.
(4) Time off in lieu of working breaks:
The current practice allows employees to work through various breaks and leave work early. The Company propose to dispense with the practice while the Union wants to retain it.
(5) Change in sick leave regulation:
At present, the Company can refer a worker to the Company doctor after 10 days' accumulated sick leave. The Company feels this is too restrictive and wishes to look at each case individually.
(6&7) Crewing levels on bunching machines/allocation of overtime:
The current situation is that 3, 6 and 11 bunching machines are set to run where there are 1, 2 and 3 employees respectively. The Company wants to increase this ratio to 1 operator working 5 machines. Overtime is to be offered as per job needs/skills match as required. In the event of overtime at weekends in wireworks, 2 employees are required to run 2 wiredrawing machines and 5 bunching machines. At weekends, the second worker may or may not be a multiline operator (i.e. an operator who can work both bunching and wiredrawing machines). The Union contends that the Company should specify which area, either bunching or wiredrawing, is needed at week ends, and that the second worker should come from that particular area. (Not all workers are trained in both skills, i.e. bunching and wiredrawing.)
UNIONS' ARGUMENTS:
Redundancy terms:
3. 1. A number of other companies involved in the industry have given redundancy settlements of 4/5 weeks' pay per year of service with no capping (details supplied to the Court). All of the companies were involved in closures rather than restructuring, and would not have had the opportunity to recoup the cost of the redundancy package as Wessel Industries Limited will.
Shift working:
2. Currently, one third of the workers are involved in permanent night working. They receive meal vouchers and 1 additional day's annual leave as compensation. With the introduction of 3-shift cycles the workers will lose the 1 day's leave, and meal vouchers will be reduced by two thirds (they will still receive meal vouchers for 1 shift in 3). The Company should extend the benefits to all workers.
Elimination of 6 days' annual leave:
3. The 6 days' annual leave were introduced as part of the settlement under the Programme for National Recovery (PNR). They equate to the introduction of a 39-hour week, which is now standard for all workers. If the Union accepted the Company's proposal it would, in effect, restore the equivalent of a 40 hour week.
Time off in lieu of working breaks:
4. Retaining the present system, where employees who work their breaks and leave early are covered for by their colleagues, would have no implication for the Company with regards to cost or output. There have been no problems to date with the agreed arrangement.
Change in sick leave regulation:
5. The present arrangement, whereby the Company refers a worker to the doctor after 10 days sick leave, was re-negotiated and agreed in November, 1996. The Company's proposals to refer a worker to the doctor on the first day of sick leave is out of line with normal practices in the industry.
Crewing levels on bunching machines/allocation of overtime:
6.& 7. Clause 46 of the November, 1996 agreement provides that, in the event of absenteeism, every effort will be made to ensure that machines are not turned off. The Company is now proposing revised crewing levels but also wishes to retain the facility for covering for absenteeism provided for by Clause 46. The crewing levels proposed by the Company would be the limit of what the workers could achieve. They could not provide cover as well. The Company's proposals for overtime would, in effect, leave the allocation for overtime at the discretion of the supervisor. As not all of the workers are trained for both the wiredrawing machines and bunching machines, it would mean that those workers who are would do most of the overtime. A roster system is the only fair way.
COMPANY'S ARGUMENTS:
Redundancy terms:
4. 1. The previous redundancy settlement offered was 2.75 weeks' pay per year of service subject to a maximum of £11,000. The Unions' proposal of 7 weeks' pay per year of service would cost the Company £1.2 million, which it cannot afford.
Shift Working:
2. The Company is prepared to maintain the current system of meal vouchers for night workers and apply it to employees working nights under a 3-cycle shift operation. The annual leave entitlement is 20 days, and the Company provides a group V.H.I. scheme for employees. The Unions' claims are cost increasing and are debarred under Partnership 2000.
Elimination of 6 days' annual leave:
3. The move to a 39-hour week is an essential part of a 3-shift operation. The restructuring programme will mean a reduction in personnel, which will reduce the Company's ability to cover for holidays and high absenteeism levels. It will be more efficient with a reduced workforce to work a 39-hour week.
Time off in lieu of working breaks:
4. The current practice depletes the number on shift, thus making it more difficult to complete end of shift duties and an effective shift change over.
Change in sick leave regulations:
5. The Company cannot be restricted in the referral of an employee to a Company doctor where there are high levels of certified absences (total absence being 14%). Such restrictions would preclude referrals for a second opinion to ascertain fitness to work or if poor timekeeping/early departure is medically related.
Crewing levels on bunching machines/allocation on overtime:
6 & 7 The Company needs to increase its productivity and competitiveness, and thus needs a crewing ratio of 5 machines per worker. If absenteeism occurs, the Company would not expect 2 workers to operate 15 machines but the machines should not be automatically turned off. There are separate rosters for each area, bunching and wiredrawing. Only 9 operators are trained in wiredrawing. If an operator who is only trained in bunching is assigned to weekend overtime, it means that he cannot assist in wiredrawing as needed, thus reducing productivity. Overtime should be offered on the basis of workers' ability to work both sets of machines where necessary. The Company is willing to train all workers to operate both machines.
RECOMMENDATION:
The Court, having considered the written and oral submissions, recommends as follows on the issues in dispute:
(1)Redundancy Terms:
The Company offer of 3.5 weeks' per year of service, plus statutory entitlement, subject to a maximum of 18 months' salary, to be increased to 4 weeks' per year of service, plus statutory entitlement subject to maximum of 2 years' salary.
(2)Conditions for 3-Cycle Shift Work:
In the case of permanent night working employees currently receiving meal vouchers, the Company should buy this out, at a figure to be agreed between the parties.
The Court does not recommend concession of the Unions' claim on meal allowance or V.H.I. but does recommend that all 3-cycle shift personnel have 1 day's additional leave, in line with that applying to permanent night workers.
(3)Crewing Levels on Bunching Machines:
It is the Court's Recommendation that in return for the employees accepting the proposed Company manning levels, the Company should make every effort to fill any vacant post arising due to absenteeism.
On occasions when this is not possible, the problem should be discussed before machines are switched off.
(4)6 Days' Annual Leave:
The Company's annual leave was an arrangement agreed during P.N.R. discussions to allow for accumulated hours worked, over the 39-hour week, to be taken off.
The Court finds no basis for conceding 6 days' leave where 39 hours are worked.
(5)Sick Leave Regulations:
The Court finds that the Union proposal on referral after an aggregate 10 days' sick leave is reasonable, and should be accepted by the Company.
(6)Breaks:
The current arrangement of supervisory discretion should continue but account must be taken of the effect of the new manning arrangements.
(7)Overtime Arrangements:
Given the exchange of views on this matter at the hearing, the Court is of the opinion that the parties should be able to reach an agreement on this issue.
Signed on behalf of the Labour Court
Finbarr Flood
11th November, 1997______________________
C.O'N./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.