FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ALLIED FOODS LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Keogh Worker Member: Mr. Somers |
1. Compensation for re-location and introduction of new technology for warehouse staff.
BACKGROUND:
2. The Company is involved in the storage and distribution of frozen foods. It employs 36 full-time workers in the warehouse, 17 part-time workers and 28 drivers. The claim is on behalf of the warehouse workers. The function of the warehouse staff is to break down large pallets of different frozen foods and place them on special trolleys as the orders require. There is a basic wage rate of £5.71 per hour, and a bonus based on the "case rate".
Towards the end of 2000, the Company proposed moving premises from its existing depot in Ballymount Industrial Estate to the Tallaght Cold Store. The reason given was because of increased business and the substantially bigger premises in Tallaght. The proposed move would involve a number of changes in work practices, the 2 main ones being a warehouse management system (WMS), and a time management system (TMS). The Company claims that when the WMS is in operation, staff who pick orders will have immediate knowledge of product location, and the current problem of looking for goods that are out of stock will be eliminated. The TMS will involve moving from a paper card which is currently used to clock in and out of work to a 'swipe' card. It would also remove the requirement for staff to complete the sheets they currently use to keep a record of their work. (The workers wished to continue using the sheets and the Company has agreed to this). A third issue involved revised contracts for new employees. The Company has offered to "red-circle" conditions for current employees. The Company also wishes to have electronic payment of wages for all staff.
The Union has made a claim of £2,000 per person for each of the 2 main claims. Since the Labour Court hearing, the Company has stated that it was not aware of the £2,000 claim for the WMS. The Union maintains that the claim was always part of discussions between the parties.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place on the 14th of May, 2001. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 28th of May, 2000, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 13th of June, 2001. At the conciliation conference, the Company made an offer of £1,000 to full-time staff, and £500 to full-time staff employed since Christmas. The Company has also committed itself to implementing gain-sharing. The offer was rejected.
UNION'S ARGUMENTS:
3. 1. The Company has invested millions of pounds in the move to Tallaght Cold Stores because it believes that this investment will be recouped by way of increased profits due to the increase in volume of business. The workers, who have been instrumental in making the Company the success it is today, are entitled to seek payment in lieu of the potential loss incurred in the move.
2. The Company's proposed revised contracts for new workers is unfair, as it would mean that they will be paid less than present employees.
3. The workers have expressed concern that the new swipe card could be used to monitor their movements.
COMPANY'S ARGUMENTS:
4. 1. The Company has had to acquire the Tallaght Cold Stores as the business has changed considerably in the last few years - from a high-margin distribution wholesale business to a high-volume service business. The Company's profits have halved since 1996.
2. The introduction of the WMS will improve the efficiency of the warehouse operation. Staff who pick orders will have immediate knowledge of product location and the current problem of looking for out-of-stock goods will be eliminated. If the replenishment of stock levels cannot be maintained, then average "pick rate" payments will apply. Full training will be given to staff operating the new system.
3. The TMS will help to reassure staff of the accuracy of the new system. However, the Company has agreed that workers can continue to use the current record sheets. The swipe cards will not be used to monitor staff movements.
RECOMMENDATION:
The Union made it clear to the Court that there is a serious lack of trust between the workers and management; the Court is of the view that this issue needs to be addressed urgently.
In an effort to deal with the lack of trust between the parties, the Court recommends that the parties should enter into partnerships dialogue on the issues which are of concern to both sides. This process should also be used to progress the proposals on the introduction of a gainsharing scheme and to facilitate a better understanding of how it works.
In relation to the claims before the Court, the Court recommends that the Union should co-operate with the move to the new location and with the new Warehouse Management System (WMS) and the Time Management System (TMS) which have been installed as part of the new warehouse operation. In return, the Company should agree to pay average earnings for the first four weeks following the move, and average bonus earnings based on average pick rate payments (on the basis as proposed by management) for a period of a further 9 weeks. This is being recommended to facilitate the transition period following the move to allow for familiarisation with the new system.
The Court recommends that a monitoring committee should be set up to monitor any difficulties experienced and, after twelve months following the move, the parties should review the consequences of the new operation and address any difficulties arising.
The Court recommends that the move to the new location should take place as soon as possible and, in return for acceptance of the above, the Company's proposals should be accepted in settlement of this claim. The Court recommends that the proposed payment should be paid in one lump sum at the time of the move, and not in two parts as proposed by the Company. The Union should co-operate with management's need to work with a select number of employees in preparation for the move.
There were a number of residual issues which were brought up at the Court; the Court recommends that these issues should continue to be discussed.
Signed on behalf of the Labour Court
Caroline Jenkinson
2nd July, 2001______________________
CON/CCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.