FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : VAN DEN BERG FOODS (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGrath Employer Member: Mr Pierce Worker Member: Mr O'Neill |
1. Dispute concerning average overtime payment for public holidays.
BACKGROUND:
2. The Company was formed in 1993 through the amalgamation of H.B. Ice Cream and W.C. McDonnell Foods. The dispute concerns approximately 85 production workers at the H.B. Ice Cream facility in Rathfarnham and arises from an agreement reached on the introduction of a New Operating System in the plant. The agreement provided for an increase in the number of permanent posts, a 4% increase in basic pay and further increases in proficiency pay. Compensation was paid to workers who suffered a loss under the new system. The total package was complex and the Company set out a document estimating workers' weekly earnings at the appropriate rates and applying a multiplier of 52 weeks. When the scheme came into operation there were 9 weeks per year where wages were reduced. This occurred on public holiday weekends because account was not taken of average overtime for public holidays. The Union claims that payment should be made and overtime for public holidays included. Management rejected the claim. The dispute was referred to the Labour Relations Commission and a conciliation conference was held on the 1st August, 1997. Agreement was not possible and the dispute was referred to the Labour Court by the Labour Relations Commission on the 5th August, 1997. A Court hearing was held on the 15th October, 1997.
UNION'S ARGUMENTS:
3. 1. Had the change in working arrangements not taken place workers would not have suffered a loss of pay on pank holiday weekends because of the availability of overtime. Workers received a guarantee that they would not lose earnings and if this occurred that compensation of 3 times the loss would be paid.
2. Management informed workers that the new rate of pay would apply over 52 weeks per year. The Company presented on overall costing of the plan which included payment for 52 weeks.
3. Workers already receive average overtime for holidays and also for Good Friday which is a Company leave day.
4. Losses sustained by male operatives would amount to approximately one week's pay per year. For female workers the loss, on average, amounts to 27 hours' basic pay.
5. Workers accepted the agreement in good faith. They feel aggrieved that the Company, seemingly as an afterthought, decided to deduct overtime for public holidays.
COMPANY'S ARGUMENTS:
4. 1. The explanation document provided to workers did not form part of the agreement between the Company and the Union. It was transmitted directly to the individual workers at their request.
2. Custom and practice obtaining in the Company provides that average bonus is paid for public holidays and annual leave but average overtime applies only to annual leave. No variation in this arrangement was proposed or agreed during the course of negations.
3. The Union has placed a literal interpretation on figures which were prepared solely to provide a rough guide to the scheme.
4. Where an underestimate has arisen, in relation to the payment of compensation resulting from the failure to exclude average overtime for public holidays, the Company is prepared to re-calculate the level of compensation.
5. Current practice in the Company conforms with the recently enacted legislation in this area.
6. The agreement has provided significant benefits to workers. Further costs are not justified and concession of this claim would have a cost increasing effect in other areas of the Company.
RECOMMENDATION:
The Court, having considered all of the views expressed by the parties in their oral and written submissions does not recommend concession of the Union's claim.
The Court however, recommends that where compensation arises resulting from the failure to exclude average overtime for public holidays this should be calculated and paid at four times the loss.
Signed on behalf of the Labour Court
Tom McGrath
30th October, 1997______________________
T.O'D./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.