FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CONNAUGHT COURT GROUP (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Keogh Worker Member: Ms Ni Mhurchu |
1. 1. Rates of pay 2. Attendance bonus 3. Service pay 4. Dirt payments 5. Overtime
6. Shift premium
BACKGROUND:
2. The Company is a textile rental/laundry company and has its main locations in Galway and Dublin. The Galway City plant was acquired by the Johnson Service Group PLC in July, 1998, and a subsequent plant was developed in Spiddal. It is the Galway/Spiddal sites that are involved in this dispute. The claim covers 220 workers.
The Union initially made its claim on the 27th of October, 1999. Following a number of meetings, and proposals from the Company, the claim was clarified as being the six items listed above. The Union is seeking the following on each item, and that the claim be backdated to the 27th of August, 1999.
1. Basic Rate of Pay:
The basic rate of pay for a general operative in Galway is £203.85 per week, and for a tunnel operative it is £214.00. The Company has offered an increase of £7.20 per week for both operatives. The Union is seeking the same payment as the Dublin operatives i.e. £226.50 for general operatives and £261.50 for a tunnel operative.
2. Attendance Bonus:
The current scheme expects full attendance over a calender year. The Company permits no more than four certified sick days in that period. The Company recently proposed a new motivation/attendance scheme which would result in a payment of £45 per month for full attendance within the same month.
3. Service Pay Scheme:
Existing Scheme Company Proposal Union Demand
1- 4 Years = 0 1 - 4 Years = £2 1 - 3 Years = £3
4 - 8 Years = £1 4 - 8 Years = £3 3 - 6 Years = £4
8 - 14 Years = £2 8 - 14 Years = £5 6 - 9 Years = £5
14 - 19 Years = £3 14 - 19 Years = £6 9 - 12 Years = £6
19 - 24 Years = £4 19 - 24 Years = £8 12 - 15 Years = £7
24 plus Years = £5 24 plus Years = £10 15 - 18 Years = £8
18 - 21 Years = £9
21+ Years = £10
4. Dirt payment
The Union claims that at present the Company only pays four employees £7 per week for handling soiled products from industries and hospitals. The Union is seeking an increased rate to be paid to all workers handling such items.
5. Overtime Rates:
The Company pays overtime at time plus one half. Overtime is paid to workers in the Galway plant after every eight hour shift, and after the completion of a 39-hour cycle in Spiddal. Overtime is paid to part-time temporary workers after a 41-hour cycle. The Union is seeking that overtime rates be paid to all workers after an eight hour shift.
6. Evening Premium:
The Company does not pay a shift premium at present. Evening shifts commence at 4.30 pm and finish at 12.30 am. When necessary, there is a two and a half hour night shift starting at 12.30 am.
At a conciliation conference on the 6th of March, 2000, the Company made its final proposal as follows:
Basic Pay:
An increase of £7.20 per week on basic pay rates.
An additional 1% on each of the second and third phases of the Programme for Prosperity and Fairness (PPF) (i.e. May 2001 - 5.5% + 1% = 6.5%; May 2002 - 4% + 1% = 5%).
Service Pay:
Years Amount
1 - 4 £2.00
4 - 8 £3.00
8 - 14 £5.00
14 - 19 £6.00
19 - 24 £8.00
24 + £10.00
Shift:
10% shift payment to apply to long term shift employees (excluding seasonal staff), in addition to the existing paid break.
Attendance Scheme:
Attendance motivation scheme of £45 per month to replace the present attendance motivation scheme and so-called concession days.
In return for the above the Company sought the following:
1. The removal of all unofficial breaks and the introduction of a no smoking policy for both plants.
2. The suspension of the Sick pay scheme for abusers.
3. Overtime to apply after 39 hours worked.
4. The extension of the Company/Union Agreement to include disciplinary and grievance procedures.
5. The introduction of a Company/Employee Handbook.
As the parties could not reach agreement, the dispute was referred to the Labour Court on the 15th of March, 2000, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 5th of May, 2000.
UNION'S ARGUMENTS:
3. 1. Basic Rate of Pay: The workers concerned should be paid the same rate as employees in the Dublin branch as they are carrying out the same duties. The Company's argument that the current Company/Union agreement precludes claims for pay parity is not valid as the agreement dates back to 1990. The situation within the Company has changed dramatically since then.
2. Attendance Bonus: The Company's offer of £45 per month for full attendance would only put the Galway workers on parity with the Dublin plant. The scheme should be applicable to all staff, including part-time/temporary workers. The Company's proposed scheme would not include these workers.
3. Service Pay Scheme: The Company has admitted that the current scheme is outdated. However, the time increments in the proposed scheme are too severe.
4. Dirt Payment: Workers at both plants (Galway and Spiddal) are directly handling pieces of soiled laundry, often containing hypodermic needles and razor blades. The fact that the Company only rewards four workers with a £7 allowance is very unfair.
5. Overtime Rates: The Company's argument that future overtime should be paid after a 39 hour working week is unfair as many workers have developed working patterns which would not include a 39 hour week. Workers depend on accessing overtime after eight hours.
6. Evening Premium: The offer of 10% is out of line with other industries nationally. The Company should pay normal industrial premiums and they should apply to all workers, including temporary and seasonal staff.
COMPANY'S ARGUMENTS:
4. 1. The current Company/Union agreement specifically precludes claims based on relativity or parity with any other department branch or division within the group.
2. The claim was served during the lifetime of Partnership 2000 and, as such, is debarred as it is cost-increasing. The Company will honour the new national pay agreement.
3. Comparisons made by the Union with Dublin fail to take account of the major reorganisation which took place in the Dublin branch, including redundancies, changes in work practices, changes in working hours, etc. (full details supplied to the Court).
4. The Company made it clear that any progress on the Union claim would have to be self-financing. The Company is not seeking a major restructuring in Galway as it did in Dublin. Conceding the claim without offsetting the costs would make the Company uncompetitive.
RECOMMENDATION:
The Court considered the written and oral submissions made by the parties.
The Court recommends that in return for acceptance by the employees of the Company proposals, the Company package be amended as follows:-
Service Pay
1 - 3 Years = £2 per week
3 - 6 Years = £3 per week
6 - 10 Years = £5 per week
10 - 16 Years = £6 per week
16 - 22 Years = £8 per week
22 + Years = £10 per week
Dirt Payment
The Court notes the fact that the Company pays an allowance termed "Dirt Allowance". The Court finds no reason to justify why only four people are paid the allowance. The Court believes that the other employees involved in this type of work should receive the allowance irrespective of their employment status. The level of payment should be reviewed from time to time.
Evening Premium
The Court, based on the information before it, does not recommend a change in the Company proposal on the premium rate to be paid for evening shift, but recommends that this premium apply to all who work the shift regardless of employment status.
Signed on behalf of the Labour Court
Finbarr Flood
25th May, 2000______________________
CON/CCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.