LCR16171

(3) Update lunch allowance

(4) Overtime included in pay for annual leave

(5) Payment of night allowance.

BACKGROUND:

2. The plant is located in Moate, Co. Westmeath and has been in operation for 40 years. There are 5 claims involved in the dispute.

(1) Claim 1: Update on commission structure
The Union claims that in order to gain any form of gratuity, a driver has to achieve a threshold of 1,250 gallons of milk. The driver then qualifies for 7.65 pence on each additional gallon sold.

(2) Claim 2: Overtime payment for Sunday
The workers involved (4) are paid time plus one half for Sunday work. The Union believes that they should be paid double-time.

(3) Claim 3: Lunch allowance
At present, a lunch allowance is £2.00 per day. The Union wants the allowance increased.

(4) Claim 4: Holiday Pay
The Union wants average overtime to be included in pay for annual leave.


(5) Claim 5: Night allowance
There are 20 workers involved in night work, starting at 3.00 am. The Union believes that these workers should be paid an allowance for working unsocial hours.

The dispute was referred to the Labour Relations Commission and 2 conciliation conferences took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 28th of January, 1999, in accordance with Section 26 (1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 27th of April, 1999.



UNION'S ARGUMENTS:

1. Issue 1 Commission rate
In order to sell an additional 10 gallons of milk, a driver may have to deliver to an additional 20 houses, covering a radius of perhaps an extra 30 miles per day. It is not financially worthwhile for the drivers. Production problems such as sour or leaking milk also cause problems.

2. Issue 2 Sunday overtime
Most industries now pay double-time for Sunday work, including a sister company, Dawn Dairies in Galway.

3. Issue 3 Lunch allowance
Lunch allowances were first introduced in the early 1990s at a rate of £1 per day. Since then only one increase has taken place, bringing the rate to its present £2 per day. Other Dawn Dairies' companies pay either £6.25 per day or £25.00 per week.

4. Issue 4 Holiday pay
In 1996, the Company approved the payment of commission to drivers while on annual leave. It is understood that Dawn Dairies in Galway pay average overtime to workers on holidays. The same should apply to the workers in Moate.

5. Issue 5 Night allowance
Our members start work at 3.00 am, 5 or 6 days per week, but receive no added compensation for night work or unsocial hours. The norm in these situations is for a night premium to be paid.



COMPANY'S ARGUMENTS:

1. Issue 1 Commission structure
A survey of a cross section of the workers involved showed that 39% of total earnings is incentive-based for the year 1998/99, higher than the previous year. Average earnings for the workers in 1998 was to £18,700, compared to £17,500 in 1997/98.

2. Issue 2 Sunday overtime
A number of drivers are required to work on Sundays. Custom and practice is for Sunday to be a working day for tanker drivers in the dairy industry. Current arrangements are for 1.5 times basic pay if rostered for Sunday, and twice basic if unrostered, which is fair.

3. Issue 3 Lunch allowance
The Company pay £2 per day to workers absent from their base during work. The Company intends increasing the allowance to £3 with effect from the 1st of September, 1999.


4. Issue 4 Holiday pay
In 1996, average commission was included for drivers while on annual leave. All other categories received an increase of £6 on basic pay to deal with the claim of regular rostered overtime in annual leave payments. This claim is cost-increasing under clause 6 of Partnership 2000.

5. Issue 5 Night allowance
Different start times are required in the dairy industry, due to the nature of the business. There is no other way to operate. This claim is also cost-increasing under Partnership 2000.




RECOMMENDATION:

Having considered the submissions of the parties, the Court recommends as follows in respect of the Union's claims:

1.Update of Commission Structure
The Court notes the parties recently agreed to increase the commission rate by reference to movements in basic pay. The Court believes that any further cost-increasing claim in relation to those rates would not now be justified. However, the Court recommends that the parties explore the possibility of re-structuring the present arrangements on a self-financing basis.

2.Overtime for Sunday
The Court is satisfied that the present arrangements are out of line and recommends concession of the Union's claim.

3.Lunch Allowance
The Court recommends that this allowance be increased to £3 per day and indexed to national pay round increase thereafter.

4.Average Overtime Included in Pay for Annual Leave
The Court recommends that where overtime is regular and rostered it should be included in the calculation of pay for annual leave and public holidays. In other situations, the present arrangements should continue.


5.Night Allowance
On the basis of the information provided to the Court, and having regard to the nature of the Company's business, the Court does not recommend concession of this claim.



Signed on behalf of the Labour Court



Kevin Duffy
21st May, 1999______________________
CON/BCDeputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.