FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DAWN DAIRIES LIMITED, KILLARNEY - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr McHenry Worker Member: Mr Rorke |
1. Rationalisation - six-day working to five-day working.
BACKGROUND:
2. Dawn Dairies Limited is part of the Dairy Products Division of Kerry Foods, which forms part of the Kerry Group. It employs up to 70 people in the assembly, distribution and sale of milk, mineral water and spread products.
The dispute before the Court concerns 16 workers employed in the milk assembly operation. For many years milk assembly has taken place over 6 days (Monday to Saturday). To cover this operation the workers concerned are rostered for 5-day working over 6 days. The worker's day off varies from week to week.
In early 1997, arising from a significant drop in production requirements, discussions took place between the parties in relation to the Company's proposals to move to 5-day working (Wednesday day off).
A trial period of two weeks was agreed and this was followed by a further trial period of 6 months. In the meantime the Union put forward various proposals in return for acceptance of the 5-day working as follows:-
(1) Time and one half for Saturday working.
(2) Once off lump sum payment of £1,000.
(3) Increase in annual leave entitlement.
(4) Increase in basic pay of £10 per week.
Management rejected the Union's claim.
The matter was referred to the Labour Relations Commission. A conciliation conference took place following which the Company's offer of a lump sum payment of £250 nett was rejected by the workers. As agreement could not be reached the dispute was referred to the Labour Court on the 7th of September, 1998, under Section 26 (!) of the Industrial Relations Act, 1990. A Labour Court hearing took place in Thurles on the 22nd of September, 1998.
UNION'S ARGUMENTS:
3. 1. Under the proposed arrangement the workers will lose the flexibility they enjoy under the present system. During the trial period this caused some inconvenience to a number of workers.
2. The Company stand to make substantial savings by the introduction of 5-day working. Already a number of people have left the Company's employment and have not been replaced.
3. The Company enjoy an ever increasing share of the spring water market.
4. The Union has acknowledged in principle the need for change. The workers are back working 5 days over 6 days and will not revert to the new system unless management's offer of compensation is substantially increased.
COMPANY'S ARGUMENTS:
4. 1. Production costs require urgent attention if the Company is to maintain a competitive position. Production volumes at the site have reduced significantly and appropriate steps must be taken in an effort to secure the viability of production at the site in the future.
2. The Company is the smallest of the five dairies within the Kerry Group and is the only one operating 6-day production for milk and cream. Its main competitor currently operates a 4-day production system.
3. The trial period from October, 1997 to July, 1998 showed that it is practical to operate a 5-day production system. The workers concerned have not been unduly disturbed and have not suffered any loss of earnings.
4. The Company requires 5-day production in an effort to achieve greater stability of operations and assist in meeting the competitive pressures on the business. The business needs to move in line with the wider industry if jobs and the future are to be protected. The Company respectfully asks the Court to take into account that no compensation arises and to find in its favour.
RECOMMENDATION:
It would appear that both sides accept the need for the change in working arrangements given the changing business requirements. If that is not achieved it would appear from the Company's presentation that the necessity for short time working or redundancies would have to be considered.
The Court having considered the written and oral submissions recommends that the employees implement the new working arrangement and that the Company in return increase its offer of £250 nett to £400 nett to each of the employees involved.
Signed on behalf of the Labour Court
Finbarr Flood
19th October, 1998______________________
F.B./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Fran Brennan, Court Secretary.