FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TYCO MALLINCKRODT - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Mr. Somers |
1. Basic Pay & Service Pay, VHI.
BACKGROUND:
2. The Company manufacturers medical products and operates from 3 plants in Athlone, Dublin and Galway. The claim is on behalf of SIPTU members in the Athlone plant where there are 471 members. Since 1987 the members have received the basic terms of all agreements negotiated at national level. In 1999 the Union lodged a claim to the Labour Relation Commission. Two conciliation conferences were adjourned and a third and final conciliation conference was held on the 10th August 2000 from which a proposal emanated.
The Union recommended acceptance of terms contained in the proposal. However, it was subsequently rejected by the membership. The Labour Relations Commission referred a request, made by both parties, to the Labour Court to investigate the dispute under Section 26 (1) of the Industrial Relations Act, 1990. The Court heard the dispute on 30th January 2000.
UNION'S ARGUMENTS:
3. 1. Workers have seen their rates of pay diminish in value in real terms since 1987, in comparison with other employment's that they used to be equal with or in some cases ahead of.
2. The introduction of lump sum payments which are service related and the abolition of five, ten and fifteen year service awards, Christmas Dinner Dance, Christmas Gift Voucher, are viewed as giving with one hand and taking with the other.
3. The pay increases recommended do not restore the members pay levels to a point where they feel they should be during the currency of the PPF.
4. The partial payment of VHI for members who have ten years or more service is unacceptable. This benefit is a regular feature of good employment's and is in an area in which the members feel they have fallen behind.
COMPANY'S ARGUMENTS:
4. 1. The products manufactured at the Athlone site are medical devices which are for single use and disposable, as they are primarily commodity rather than speciality type products.
2. The costs in Athlone of producing the bulk endotracheal tubes are 75 cents versus the Mexican cost of 55 cents per unit.
3. Retention and recruitment issues have grown somewhat for the Company in Athlone because of the tightening labour market but not to the extent that the Company finds it difficult to recruit labour at entry level.
4. The agreed proposal that emerged at conciliation is the one that the Company was willing to sign up to and is still willing to do so from the date of agreement.
RECOMMENDATION:
The Court having considered the written and oral submissions made by the parties, and having taken account of the key issues as highlighted by the Union, recommends that the employees accept the Labour Relations Commission proposal with the following modifications:
1.Pay
First instalment to be 5%
Second instalment to be 2%
Third instalment to be 1%
Payment dates to be as in LRC proposal.
2.Other Proposals
The VHI proposal should be accepted, and the proposals for new service-based voucher payments at Christmas. However, the existing awards for 5,10, and 15 years service, and the Christmas dinner dance arrangements should continue, with only the
old Christmas vouchers being dropped.
Signed on behalf of the Labour Court
Finbarr Flood
13th February, 2001______________________
HMCD/CCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Helena McDermott, Court Secretary.