FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BORD NA MONA - AND - BORD NA MONA GROUP OF UNIONS DIVISION : Chairman: Ms Owens Employer Member: Mr Pierce Worker Member: Mr Rorke |
1. Disturbance payment for (a) the Boora amalgamation and (b) future amalgamations.
BACKGROUND:
2. In 1989 Bord Na Mona and the Group of Unions entered into a Partnership Agreement which recognised the commercial and competitive pressures facing the Company and the need for radical change in all spheres of the Company's activities in order to remain cost effective.
The 1989 agreement provided for Autonomous Works Units to be established in various bogs throughout the country and for 16 Team Leaders to be assigned to four locations as follows; East Boora, West Boora, East Drinagh and West Drinagh.
In 1997, the Company decided for economic reasons to rationalise production operations at the Boora Works and to merge/amalgamate the four units into two units.
The Unions accepted that the Team Leaders affected would not suffer any loss of earnings. However, the Unions see this as a major disturbance to the work of its members and one in which compensation is justified in line with a previous amalgamation situation at the boards "Littleton Works".
Management rejects the Unions' claim and states that the compensation paid to Team Leaders in the Littleton Works in 1994 was a "once-off" local agreement dictated by particular local circumstances.
As no agreement was possible between the parties the dispute was referred to the Conciliation Service of the Labour Relations Commission. A conciliation conference was held on the 16th of October, 1997 but no agreement was reached. The dispute was referred to the Labour Court on the 28th of October, 1997 under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 12th of March, 1998.
UNIONS' ARGUMENTS:
3. 1. The amalgamation will double the size of the areas covered by the Team Leaders and will significantly increase machine movement and travelling requirements.
2. The disruption to the smooth operation of the units resulting from the requirement to re-apportion team management responsibilities and rebuild team cohesiveness.
3. There are extra costs involved to Team Leaders in managing the amalgamated areas.
4. The type of disruption and imposition experienced by the Boora Team Leaders are the same as those experienced by their colleagues at the Littleton Works.
5. Compensation should also be paid to Team Leaders involved in any future amalgamations along the lines of that conceded to the Littleton workers.
COMPANY'S ARGUMENTS:
4. 1. The "change programme" was developed as part of the Partnership Agreement, resulting in the establishment of self-managed work teams based on direct employment and linked to a payment by results system.
2. The total acreage remaining available for peat production was no longer sufficient to support four viable production units. The tonnage target for the four areas has reduced from 358,000 tonnes in 1992 to 171,000 tonnes in 1997.
3. The claim by the Union is against the spirit of the Partnership Agreement entered into in 1989.
4. Management contends that any impact on team cohesiveness is a training and development issue and should be addressed through training and development interventions.
5. Concession of the claim would have major repercussive effects for the Company.
RECOMMENDATION:
The Court, having considered the written and oral submissions of the parties, is satisfied that amalgamations of Autonomous Enterprise Units do not necessarily have the same impact on Team Leaders in each case and consequently must be considered separately as they occur.
In the present case, taking all the facts into consideration, the Court recommends that the level of compensation should be £300 (tax paid).
The Court stresses that this recommendation only applies to the case before it and that therefore the second part of the Unions' claim fails.
Signed on behalf of the Labour Court
Evelyn Owens
24th March, 1998______________________
L.W./D.T.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.