FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GLANBIA - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Keogh Worker Member: Mr O'Neill |
1. Grading/Regional Sales.
BACKGROUND:
2. The Company is in the process of rationalising its structures and operations across all divisions. The current dispute concerns the chilled food division of the Company and three Regional Sales Managers (RSM's) over the introduction of a new sales structure.
The Company claims that it is essential that the new structures be put in place in order to meet the changing demands of the business and to compete effectively.
The Union states that these staff are effectively being demoted. The status quo should be maintained for the three Regional Sales Managers concerned. If this is not possible then they should have the option of redundancy on the same terms as that offered to one of their colleagues.
As no agreement was possible between the parties the dispute was referred to the Labour Relations Commission. Conciliation conferences were held on the 4th April 2001, and on the 14th May 2001 but no agreement was reached. The dispute was referred to the Labour Court on the 19th June 2001, under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 18th July, 2001.
UNION'S ARGUMENTS:
3. 1. Management made a unilateral decision to restructure the organisation without any consultation with the staff.
2. The staff concerned have given substantial service to the Company and should be given the option of redundancy.
3. If the status quo cannot be maintained then the managers concerned should receive compensation (6 months salary) for the loss of their managerial positions.
COMPANY'S ARGUMENTS:
4. 1. The staff concerned will not suffer any changes to their conditions of employment or to their remuneration package.
2. Agreement has been concluded with other staff employed in Belgard and Castlelyons distributor depots on new flexible work practices.
3. The Company operates in a very competitive market. The new sales structures will help to meet the changing demands of the business and assist the Company compete effectively.
RECOMMENDATION:
The Court accepts that the posts offered to the managers concerned will result in some diminution in status but not in pay or conditions of employment. In the Court's view the diminution in status should be compensated for by the payment of a one-off lump sum and on that basis the management's proposal should be accepted.
The Court recommends that the parties should now have discussions on a compensatory payment to the managers concerned. Should these discussions not result in agreement, the matter may be referred back to the Court for a definitive recommendation.
Signed on behalf of the Labour Court
Kevin Duffy
20th July, 2001______________________
LW/BRDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.