FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : JOHN RONAN & SONS LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Pierce Worker Member: Mr O'Neill |
1. Piece rates for drum salting and baling.
BACKGROUND:
2. The Company, which has plants in Clonmel, Co. Tipperary and Tallaght, Dublin, is engaged in the treatment of animal hides and skins for the domestic and export markets. The dispute concerns the piece rates in respect of drum salting and baling in the Tallaght plant, and affects 20 employees. In April, 1998, prior to the introduction of new equipment in the salt drum and baling operations, piece rates were set for a 30-day trial period, as follows:
- £35 in respect of operating the salt drum;
£12.50 in respect of baling wool;
£10 in respect of baling lambswool.
Consequently, following local discussions, the Union proposed rates set at £20 per drum and £9.00 per bale for baling wool and lambswool, which are in operation to date. Those rates were at variance with those being sought by the Company which claimed that the Union had not taken cognisance of operational changes affecting both drum salting and baling. The Company considers that the appropriate rates should be £7.00 and £2.60, respectively. At present, the drum salting and baling rates equate to £14.00 per hour and £17.00 per hour. The Company claims that a rate of £5.00 per hour for each operation should apply, adding that manning levels of 1 for drum salting and 1, occasionally 2, for baling are appropriate. The Union's position is that, having moved off the trial rates, its proposal is reasonable and it will not accept any further reduction to the piece rates. The Union also claims that manning levels should be set at 2 for drumming and up to 3 for baling.
The matter was the subject of a conciliation conference, under the auspices of the Labour Relations Commission, at which agreement was not reached. The dispute was referred to the Labour Court, on the 15th March, 2000, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court carried out its investigation on the 30th June, 2000.
UNION'S ARGUMENTS:
3. 1. Since the introduction of piece rates, in 1989, only hides actually processed are paid for. The total cost to the Company per hide or skin is the same irrespective of the number working on same or what day or time the work is carried out. If there is no work to be performed, there is no pay. As the business is seasonal, the workforce, who have no guarantee of earnings, must be available to work from 6.00 am for 6 or 7 days per week, i.e., when hides are available.
2. The Company has regularly sought to claw-back increases arising from national pay agreements (details supplied to the Court) and no additional payments have been received by the workforce in the past 10 years.
3. The move by the Company to reduce the piece rates is seen by the workers as one in a long line of such attempts. The workers have to perform skilled trimming work in less than ideal conditions. Yet the Company would have them earning as little as £4.80 per hour, a rate that is unacceptable and unreasonable.
COMPANY'S ARGUMENTS:
4. 1. The Union has sought to have the 1998 trial rates become the normative rates, which was contrary to the agreement between the parties and does not take cognisance of the operational changes that affect both drum salting and baling.
2. The high rates that have applied since July, 1998 have resulted in the Company doing very little business in those markets, placing the Company at a disadvantage vis-�-vis its competitors.
3. The piece rates that apply for drum salting and baling are exceptionally high in comparison to rates for other staff in the plant, e.g.,
- Forklift driver £6.09 per hour;
Skin salters £6.91 per hour;
Hide operatives £7.16 per hour.
RECOMMENDATION:
The Court, having considered the written and oral submissions, accepts that this industry is a very competitive industry. The current piece rate, in dispute, which was arrived at in unusual circumstances, seems to the Court to be out of line with the norm.
The Court concurs with the view that the most appropriate people to set about establishing a realistic rate for the drum salting and baling processes are management and workers. Accordingly, the Court recommends that the parties should agree to discuss the establishment of a realistic rate for those processes. These discussions should not take any longer than two months to complete.
Signed on behalf of the Labour Court
Caroline Jenkinson
19th July, 2000______________________
MK/MKDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.