FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TECH INDUSTRIES IRELAND LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr McHenry Worker Member: Ms Ni Mhurchu |
1. Re-hearing arising from Labour Court Recommendation No. LCR15600.
BACKGROUND:
2. The Company designs and manufactures plastic closures for the cosmetic and toiletries market. It employs approximately 130 people and is a subsidiary of Tech Industries Inc. based in the USA. In July, 1997, a dispute concerning a number of issues was the subject of a Labour Court investigation. In LCR15600, which was issued on the 5th of August, 1997, the Court recommended as follows:-
- " 1.Compression Moulding
The upper limit on the machine to be removed and the Company offer of £2,500 to be increased to £5,000 gross. The machine money to be red circled to the current recipients but to be increased by pay agreement increases. The Court notes the Company statement that existing employees will not incur any loss of earnings or earnings potential.
2.Setting Duties (Setters)
In return for accepting the Company's proposal on setting up machines, the Employees involved to be paid a once off gross payment of £5,000.
3.Lining Department
That the parties immediately, use the expertise of an independent third party to assess the feasibility of this proposal and to address the issues raised by the Union.
4.Claim by 3 Operators
That the Employees involved accept one of the offers made by the Company.
Separate to the arbitration above, the Court is concerned at the apparent bad industrial relations climate in the Company and would suggest to the parties that the use of an independent body e.g. the Advisory Service of the Labour Relations Commission might help to create a climate of trust."
Subsequently, the parties entered into negotiations to try and resolve the dispute. Agreement was reached on some of the issues. However, the parties were unable to agree on the interpretation of two issues concerning the Court's recommendation; (a) "red circling" of machine money in the Compression Moulding section, and (b) the efficiency of the Lining Department. As no agreement was possible on the outstanding issues the matter has been referred back to the Court for a definitive recommendation. A Court hearing was held on the 2nd of June, 1999.
UNION'S ARGUMENTS:
3. 1. The Union accepted Labour Court Recommendation No. LCR15600. The members reject any attempt by the Company to re-negotiate that recommendation.
2. The "red circling" of machine money in the Compression Moulding section should be on an on-going basis irrespective of what job is being performed.
3. Any loss of earnings as a result of changing from a four to three shift pattern should be resolved through agreed procedures.
4. The Union's claim for the technicians' rate of pay should be conceded to the Setters employed in the Lining Department.
COMPANY'S ARGUMENTS:
4. 1. The Company operates in a very competitive market. It must remain competitive or it will lose business to its competitors.
2. The Company has paid out compensation of approximately £75,000 to employees following Labour Court Recommendation LCR15600.
3. The rates of pay being paid by the Company are above the norm for the industry.
4. The Company needs to continuously improve all its activities in order to remain viable and to retain business in Waterford.
5. The Company has always de-scaled machine money when employees moved outside of the Compression Moulding department.
RECOMMENDATION:
Arising from LCR 15600, the following 3 items were before the Court for clarification:
1. Red-circled machine money.
2. Loss of earnings following reduction from 4 to 3 shifts.
3 Claim for technician rate of pay.
It was agreed at the outset that item 3 was a new item not covered by LCR 15600 and should be processed in the normal way. On the other two items the Court finds as follows:
1.Red Circle
The Court is satisfied that the practice of carrying red-circle money applies to pay and not additional allowances. While the Court recommended red-circling of the machine allowance it would have envisaged that the normal arrangements would apply on transfer.
The Court accepts that these employees have been moved due to a downward trend in business and, therefore, does not recommend concession of the Union's claim.
2.Loss of Earnings
The Court in LCR 15600 noted the Company's statement that existing employees would not suffer loss of earnings due to the removal of upper limit on the machines.
The Court is satisfied, based on the figures supplied, that any loss of earnings was due to the downturn in business and would have happened even if the cap had been maintained.
The Court is concerned that sufficient time was not given to communicating the figures to the workforce to ensure an understanding of these figures.
Signed on behalf of the Labour Court
Finbarr Flood
1st July, 1999______________________
L.W./D.T.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.