FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DAWN MEATS (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr McHenry Worker Member: Mr O'Neill |
1. Introduction of sick pay and pension.
BACKGROUND:
2. The Company employs approximately 140 people at its location in Midleton, Co. Cork. Its operation consists of a beef and lamb abattoir and a boning hall.
The dispute concerns the Union's claim for the introduction of a pension scheme and a sick-pay scheme. Local level discussions took place in 1998, following which the Company indicated that it was prepared to consider the introduction of a pension scheme on the basis that, the Union accepted that it would not be in a position to introduce a sick-pay scheme in the foreseeable future. The Union rejected the Company's proposal. The matter was referred to the Labour Relations Commission. A conciliation conference took place in January, 1999. As agreement was not reached the dispute was referred to the Labour Court on the 28th of January, 1999, under Section 26 (1) of the Industrial Relations Act, 1990. A Labour Court hearing took place in Cork on the 18th of September, 1999.
UNION'S ARGUMENTS:
3. 1. In its report on the Irish beef sector, the 'Beef Task Force' acknowledged that it was necessary to improve the conditions of employment in the meat processing industry, both for existing employees and potential new entrants.
2. It is the Union's view that in a booming economy a sick-pay scheme should form part of a worker's conditions of employment.
3. In certain situations employees could be forced to go to work because of their financial circumstances in order to support their dependants.
4. The Union's policy is not to condone any abuse of sick-pay schemes and has indicated to management that it is prepared to discuss some form of safeguards that would help to avoid any misuse of the scheme.
5. Some form of pension scheme is seen as an integral part of any salary package and the Company should accept its obligations to provide cover for its employees post retirement. Such schemes are normally integrated with State benefits and only requires a modest commitment on the part of the employer.
6. Most of the employees concerned have an average of five years service, with an age profile of thirty-four years. It is imperative that a scheme be introduced now in order for employees to accumulate reckonable service to coincide with their retirement age.
COMPANY'S ARGUMENTS:
4. 1. Dawn Meats operate in an industry that is facing difficult times. These difficulties have been clearly outlined in the McKinsey Report on the Irish Beef Sector. Operating profits in the industry in general, and in this Company in particular, would be between 0.5% and 2%. Therefore, any increase in costs would have serious implications.
2. The Company is anxious to provide terms and conditions of employment that are as favourable as possible bearing in mind the difficult climate it operates in. The Company has honoured all its commitments under the terms of the National Pay Agreements including the local bargaining clauses. The Company introduced Death in Service Benefit in 1997. It was in this context that the Company was prepared to consider the introduction of a pension scheme should the Union withdraw its claim for the introduction of a sick-pay scheme for the foreseeable future. The Union would not accept this compromise. Therefore the Company had no option but to withdraw such an offer.
3. At present, absenteeism levels in the Company are very high - averaging 8.6% between June, 1997 and August, 1999. There have been instances where absenteeism has reached 20%. Therefore, absenteeism is resulting in significant cost increases for the Company already, and the introduction of a sick-pay scheme would worsen this situation. The Company's ability to deal with absenteeism is already limited by the current labour market climate.
4. Only one other sister company has a pension scheme in operation. It was introduced as part of the negotiations under the local bargaining clause of PESP and Partnership 2000 and no sister company has a sick-pay scheme. In the circumstances, the Company has no option but to reject the Union's claim and requests the Court to find in its favour.
RECOMMENDATION:
The Court has considered the submissions of the parties and recommends as follows:
Pension Scheme
The Company should agree to introduce a pension scheme as soon as the detailed terms and conditions of such a scheme can be agreed. With that in view the parties should resume negotiations as early as possible.
Sick Pay Scheme
Further negotiations on the introduction of a sick-pay scheme should be deferred for a period of twelve months. During this period the Union and management should co-operate in addressing the level of absenteeism within the Company. The degree of success achieved in reducing absenteeism to a more acceptable level should be taken into account in the resumed negotiations recommended on this issue.
Signed on behalf of the Labour Court
Kevin Duffy
4th October, 1999______________________
FB/BCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Fran Brennan, Court Secretary.