FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1); INDUSTRIAL RELATIONS ACT; 1990 PARTIES : NOMADIC STRUCTURES (IRL) LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Mr. Somers |
1. Gainsharing, Outsourcing, Annual Bonus.
BACKGROUND:
2. The Company manufactures folding exhibition frames, primarily for export, and employs 65 workers. The Union's claims were rejected by the Company and the dispute was referred to the Labour Relations Commission. A conciliation conference was held on the 20th April, 2001. Agreement was not reached. The dispute was referred to the Labour Court by the Labour Relations Commission on the 23 May, 2001. The dispute was received in the Court on the 23 May, 2001. A Court hearing was held in Westport, on the 6th November, 2001. At the hearing the issue of Gainsharing was withdrawn.
UNION'S ARGUMENTS:
3. 1. Outsourcing. An increasing volume of work is being sent outside the factory for assembly. The Company has brought back some of the work but indicate that it is the intention to continue to send work outside the factory. The workers are very concerned and are anxious to retain work inside the plant, to allow them to have some job security without threat from areas over which they have no control, and to allow for the future recruitment of workers. to the plant.
2. Bonus. Currently the bonus is paid to the workforce in April of each year, however, workers have no information in relation to the measurement applied to determine how the bonus is achieved. Workers need to know exactly how pay in the form of bonus is calculated.
COMPANY'S ARGUMENTS:
4. 1. Outsourcing. It has always been the Company practice to outsource work that can be more efficiently completed in that manner. Subcontracting of work must be at the sole discretion of Management.
2. Since 1981 the Company has never implemented short time or lay off. The Company has increased numbers in the employment from 10 to 65 in that period.
3. Bonus. There is no particular formula or exact calculation for arriving at the total amount of the bonus and it is not guaranteed every year. It is the prerogative of the Group's president who is responsible for the six Nomadic companies and who decides the bonuses for each of these companies on a similar basis. Bonus is viewed by senior U.S. Management as a gift from the Company.
RECOMMENDATION:
Outsourcing;
The Union concern, that the effect of the Company policy on outsourcing on its members, while minor at the moment, could present major difficulties in the future if there was a significant downturn in the business, is understandable.
The Company argument that it needs to balance the costs of the organisation ,particularly in relation to development of products, is however a reasonable objective.
It would be unfortunate if the progress made in the Company by the good working relationships and flexibilities was to be damaged by a fear of what might happen, rather than an actual problem.
The Court, taking account the employee fears, recommends that the Company agree a policy of openness in relation to work to be outsourced and that briefings take place at the appropriate times. If the employment situation deteriorates then the wider issue of outsourcing should be discussed.
Bonus;
The Union clearly have a concern that there is a lack of transparency in relation to how the bonus is constructed and the fact that there is no guarantee of its continuance.
Management have indicated that the bonus money is allocated to operating units at the discretion of the C.E.O., and that she reserves the right to apply this, as she sees fit.
In response to the workers' concerns the Court recommends that Management seek a response to the workers' request for transparency in relation to application of this bonus.
Signed on behalf of the Labour Court
Finbarr Flood
15th November,2001______________________
TOD/BRChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.