FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CONNOLLYS RED MILLS LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Keogh Worker Member: Mr O'Neill |
1. Pay increase.
BACKGROUND:
2. The Company manufactures, stores and distributes animal feedstuffs at its plant in Goresbridge, Co. Kilkenny. It employs approximately 110 staff.
At present the Company is working towards the introduction of a World Class Manufacturing operation at the plant. Since 1999, the Company operates a bonus scheme which averages at £15 per week.
The dispute before the Court concerns a claim by the Union on behalf of its members for an increase in their basic rate of pay. The Company made an offer to the Union of £25 per week fixed bonus to replace the existing bonus for a period of six months while negotiations regarding the introduction of World Class Manufacturing take place.
The Union rejected the offer stating that the £25 per week should be on the basic rate of pay and not as a fixed bonus.
The dispute could not be resolved at local level. The dispute was the subject of a conciliation conference under the auspices of the Labour Relations Commission held on the 15th of May, 2000. As agreement was not reached, the dispute was referred to the Labour Court under Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 22nd of August, 2000.
UNION'S ARGUMENTS:
3. 1. Workers are no longer willing to accept the low rates of pay given the current economic climate and the increase in profits at the plant.
2. The Company should desist from offering allowances and fixed bonus payments and replace them with an offer of £25 per week on the basic rate of pay and allow both sides to begin negotiations regarding the introduction of World Class Manufacturing at the plant.
COMPANY'S ARGUMENTS:
4. 1. The offer of £25 per week fixed bonus replacing the existing bonus for a period of six months while negotiations regarding the introduction of World Class Manufacturing take place was rejected by the Union.
2. All nationally agreed pay agreements have been honoured.
3. The Union's claim is cost increasing and cannot be conceded.
RECOMMENDATION:
It is noted that the Company, in agreement with the Union, is currently working towards the introduction of a World Class Manufacturing operation at the plant. In the Court's view, the benefits of this operation, when introduced, should be shared with employees by way of adjustments in pay structure.
The Court recommends that the Company should endeavour to ensure that such a system is introduced within a time frame of not more than six months from the date of acceptance of this Recommendation.
The Court further recommends that pending the introduction of World Class Manufacturing, the Union should accept the Company's offer of a fixed bonus which should be increased to £30 per week. This bonus should continue to be payable until adjustments in pay structure are agreed on the introduction of the proposed WCM system.
In all other respects the bonus should apply on the terms proposed in the letter of offer dated the 10th of August, 2000.
Signed on behalf of the Labour Court
Kevin Duffy
31st August, 2000______________________
G.B./C.C.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.