FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ARCON MINES (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr McHenry Worker Member: Mr Rorke |
1. Dispute concerning pay and conditions.
BACKGROUND:
2. The Company operates a zinc/lead mine and is the only Irish owned and operated base metal mine in the country. Production began in mid 1997. The dispute concerns 11 maintenance craftworkers (fitters and electricians). It relates to the Union's claim on behalf of these workers for improved basic pay, shift pay, tool money, bonus scheme and other general conditions. The claim was submitted following the settlement of a lengthy strike by miners and general workers. Local level discussions failed to resolve the issues in dispute and these were referred to the Labour Relations Commission. Conciliation conferences were held in June and August, 1998, but agreement could not be reached. The dispute was referred to the Labour Court by the Labour Relations Commission on the 8th October, 1998. A Court hearing was held in Kilkenny on the 3rd November, 1998. A number of issues in relation to general conditions were agreed at the hearing. Details of the outstanding claims are as follows:
1. Basic Pay
Union's Claim Company's Offer
1st May, 1998 - £9.25 (15.2%) £9.00
1st May, 1999 - £9.39 (+1.5% P2000) £9.37
1st May, 2000 - £9.48 (+1% P2000) £9.68
1st May, 2001 - £9.92
2. Shifts
Union's Claim Company's Offer
(i) 5 Day 2 cycle - 20% - 18%
(ii) 7 Day 2 cycle - 25% - 22%
3. Tool Allowance
£520.00 £250 plus a once-off payment of £250 this year.
UNION'S ARGUMENTS:
1. The Union's claim on basic pay is the minimum acceptable to the workers concerned.
2. (i) The Company currently operates 5 day 2 cycle shifts for both miners and craftworkers. The premium paid to both the miners and craftworkers is currently 18%. The Union claims 20% as the appropriate premium for craftworkers.
(ii) The electricians are the only workers on site who provide 7 day 2 cycle shift work. The current premium paid is 17%. There are insufficient Arcon electricians to provide this shift pattern on an ongoing basis and consequently contract electricians are used from time to time to augment this cover when this occurs the contract electrician is paid 25%. The Union's claim for 25% is appropriate in the circumstances
3. Craftworkers are required to provide a comprehensive tool kit in order to maintain the wide range of plant and equipment on site. The established industry rate for tool money is £520 and on this basis the Union's claim is for £520.
COMPANY'S ARGUMENTS:
1. The Company's offer on basic pay provides for a major increase to the existing pay levels over the proposed time span.
2. The shift premium offer (5 Day 2 shift rotating) increased to 18% is reasonable in the circumstances as is the 22% for 7 Day 2 cycle considering the other conditions which Arcon workers enjoy which are not available to contractors.
3. The tool allowance offer of £250 augmented by a once-off payment of £250 for this year is the best offer the Company can afford to make.
4. The Company has also offered many other improvements to workers' conditions (details supplied to the Court).
5. The Company's capacity to take on additional cost by way of improved pay and conditions of employment is finite. In particular, it is limited by the early stage of development of the Company and negative market conditions.
6. The terms offered represent pay increases of 32% between November, 1996 and May, 1998 together with costly additions to the package of conditions and represent the absolute and full capacity of the Company to take on cost increases.
7. The improvements in pay and conditions of employment proposed would restore the relative positions of the craftsmen vis a vis miners and mill workers following the implementation of the settlement terms which brought the 14 week dispute to an end.
RECOMMENDATION:
The Court is conscious that there have been extensive negotiations in relation to this issue including the rejection of recommended packages.
Based on the information before it, the Court is satisfied that the solution proposed is a fair one and should be accepted by the employees.
However, the Court would recommend that a formula for future negotiations be agreed between all the relevant parties to avoid one group feeling another has had more influence than them.
The Court also recommends that the Company proposal on"start up payment"of £250 in regard to tool money be increased to £500 with annual payments of £250.
Signed on behalf of the Labour Court
Finbarr Flood
4th December, 1998______________________
TOD/BCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.