FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IRISH BISCUITS LIMITED - AND - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION BAKERY AND FOOD WORKERS AMALGAMATED UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Keogh Worker Member: Mr Rorke |
1. Dispute concerning compensation for loss of night shift premium and grade payment.
BACKGROUND:
2. In April, 1998 the Company set up a permanent night shift consisting of 34 workers (13 key operatives and 21 packing operatives). The shift was introduced to supplement production volume of specific products to meet market requirements.
In May of 1999 because of a decline in markets the Company could not sustain the night shift and it was taken down. The workers concerned were re-deployed onto alternative shifts. The Union sought compensation for their loss of shift premium and grade. The Company at local level negotiations offered compensation as follows:-
£350 for all Night Shift General Operatives
£550 for all Night Shift Key Operatives
The Unions rejected the offer following a ballot of the workforce.
The dispute was referred to the Labour Relations Commission and a conciliation conference was held on the 21st of June, 1999. At conciliation the Unions claimed that key operatives be paid £1,000 per worker and that the 21 operatives receive £750 per worker. The Company rejected the claim.
The dispute was referred to the Labour Court by the Labour Relations Commission on the 30th of July, 1999. A Court hearing was held on the 3rd of September, 1999.
UNIONS' ARGUMENTS:
3. 1. The workers concerned suffered a very substantial reduction in earnings as a result of the Company's action. They lost the 25% shift premium (approximately £71.00) and the key operatives lost the grade payment (£47.00). The Company's offer is insufficient. The Unions believe these workers were given to understand they would be permanently appointed to night work. They decided to undertake night work because of the opportunity to achieve a top grade and also because of the financial benefit of the night shift grade. Because of the decision to cease night work their financial positions were significantly altered. They were surplus to requirements and would only be jobbed on the basis of availability of positions throughout the plant. They must receive a fair and reasonable compensatory package on the lines claimed by the Unions.
COMPANY'S ARGUMENTS:
4. 1. The value of the shift premium varied from £59 - £71 per worker and despite the relatively short duration of the night shift, the Company recognised the need to compensate the workers who suffered a loss. The principal issue between the Company and Unions is what would be fair compensation. The original offer from the Company at local discussions ranged from £266 - £320 depending on the premium held by the employee. Considering the downturn in business which resulted in the termination of the night shift in the first place, and the short-term duration of the night shift, the Company felt that this offer was reasonable. When it was rejected the Company improved its offer to £350 for all night shift general operatives and £550 for all night shift key operatives. This is an extremely generous offer. The Company has endeavoured to find a fair and reasonable solution to the issue. The Company cannot afford to increase its offer further.
RECOMMENDATION:
Having considered the submissions of the parties the Court recommends that the lump sum payments proposed at conciliation be increased as follows:-
1. £350 for Night Shift Operatives to increase to £500.
2. £550 for all Nigh Shift Key Operatives to increase to £750.
Signed on behalf of the Labour Court
Kevin Duffy
15th September, 1999______________________
T.O'D./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.