FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1); INDUSTRIAL RELATIONS ACT; 1990 PARTIES : xILLOTSON LIMITED. (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Pierce Worker Member: Ms Ni Mhurchu |
1. Compensation for loss of night shift.
BACKGROUND:
2. The Company was established in 1973 and is engaged in the manufacture of carburettors for two stroke engines. The plant in Tralee is solely involved in production for export and employs approximately 160 workers. The dispute concerns a claim for improvement in compensation for loss of night shift.
The Company claims that in 1998 it suffered a significant drop in sales and decided to reduce its machining capacity. This necessitated the redeployment of 6 production operators (4 from evening shift and 2 from day shift) to the assembly lines. Compensation of 10 weeks' shift allowance was paid, based on Labour Court recommendation LCR13192 which had issued in 1991. In February 2000, following a further down-turn in sales, the Company decided to eliminate the evening shift in the machine shop. At this time, evening shift employees worked a permanent shift of 5.00 p.m. to 1.00 a.m., Monday to Friday for which they received a 25% shift premium. Four employees accepted a severance package,1 worker remains on an evening shift as quality control/security and 5 more were moved to the day shift. These 5 workers were paid 10 weeks' shift allowance.
The Union referred a claim for increased compensation to the Labour Relation Commission (LRC). (The Union is also making a claim for a 6th worker who was redeployed from shift work in the machine shop to day work on the assembly line. The Company is opposed to any compensation in this case) A proposal - ranging from 13 weeks' compensation for 10 years' service up to 25 weeks' compensation for 25 years' service - was recommended by the Union but rejected by the members. Following another conciliation conference with the LRC, a second proposal issued on the 5th of December, 2000, offering 20 weeks' shift allowance for 3 workers with less than 10 years' on nightshift, and 20 weeks' shift allowance plus £350 (444.41 Euro) gross for 2 workers with more than 10 years' on nightshift. This offer was again rejected by the members. It was agreed that the issue would be referred to the Labour Court on the 28th of May, 2001, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 25th of September, 2001, in Tralee.
UNION'S ARGUMENTS:
3. 1. The workers feel that the nature of the work involved, i.e. permanent evening/night shift, should entitle them to more than the compensation on offer. Higher levels of compensation have been paid elsewhere even where the disruption to the pattern of work was less (details supplied to the Court).
2. The 6th worker involved has suffered a loss of grade as well as a loss of shift and should be compensated.
COMPANY'S ARGUMENTS:
4. 1. The Company operates in a low margin, high volume type business and faces very aggressive competition from low cost economies.The decision to eliminate the evening shift was taken as a direct result of a serious downturn in sales and profit (details supplied to the Court).
2. The Company believes that the offers made are very generous and a considerable improvement to that recommended in LCR13192. Both of the LRC proposals were recommended by the Union, which is why they were accepted by the Company.
RECOMMENDATION:
The Court has considered the oral and written submissions of the parties. The Court recommends that the second Company offer made at conciliation on 5th December, 2000 should be accepted with the following two amendments:-
- the two staff with more than ten years on nightshift should be paid an additional £500 (634.87 Euro) gross, giving a total of 20 weeks plus £500 (634.87 Euro) of which 10 weeks has already been paid.
- on an exceptional and once off basis, without precedent, the Company should pay £100 (126.97 Euro) to the 6th worker.
All other aspects of the proposal are as per the 5th December, 2000 letter from the Industrial Relations Officer.
Signed on behalf of the Labour Court
Caroline Jenkinson
10th October, 2001______________________
CON/CCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.