FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ODLUMS GROUP LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Carberry Worker Member: Mr. Somers |
1. Introduction of 4 shift cycle - 1992 agreement.
BACKGROUND:
2. The dispute concerns the Company's proposal to introduce a 4-shift cycle over 7 days as opposed to the present 3-shift cycle over 5 days, Monday to Friday. It involves 3 plants in Cork, Dublin and Portarlington and deals with 33 millers/assistant millers.
The idea was originally put forward by the Company in the early 1990s, but it was not deemed a necessity until July, 2001. This came about as a result of the closure of the Company's competitor - Bolands - and the subsequent additional business for the Company. The agreement for the 4 - shift cycle covers the following: calculation of pay, additional shift premium of 33.3%, overtime, annual leave and public holidays, and a lead - in payment. Following a number of meetings, the Union put forward the following claim: increase in the lead-in payment and annual leave, compensation for loss of earnings, increase in the basic rate for millers/assistant millers in Portarlington to the same rates as Dublin/Cork, and a productivity increase in basic rate for all millers/assistant millers.
The dispute was referred to the Labour Relations Commission and 4 conciliation conferences took place. Despite offers from the Company to increase the lead - in payment, a buy out formula for loss of earnings, and a willingness to examine the Portarlington jobs and negotiate on a basic pay increase, there was no agreement. The dispute was referred to the Labour Court on the 4th of March, 2002, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 28th of March, 2002.
COMPANY'S ARGUMENTS:
3. 1. The Company negotiated an agreement in 1992 which increased basic wages, improved conditions of employment and paid lump-sum payments. The agreement encompassed work practice changes, manning level changes and included the terms for a 4 -shift, 7-day system. The agreement should now be implemented.
2. The employees have been enjoying the benefits of this agreement for 10 years, but the Company still does not have the 4-shift cycle in place.
3. The Company has paid all of the national agreements to date.
UNION'S ARGUMENTS:
4. 1. The new 4 - shift cycle, if introduced, will have a dramatic impact on earnings built up in the Dublin and Cork plants over a long period of time. This will result from a major loss of overtime.
2. The difference in the rates between Portarlington and Dublin/Cork will get increasingly worse, (details supplied to the Court).
3. The benefits to the Company will be huge as it will have the full utilisation of the plants (168 hours) and the resultant increase in production.
4. The shift work will have a serious effect on the workers and their social/family life.
RECOMMENDATION:
Having considered the submissions of the parties, the Court recommends that the Union should now agree to the introduction of seven - day, four - cycle shift working on the following basis:-
Basic Pay
An increase in basic pay of €19.00 per week should be offered to each employee associated with this claim to take account of the increased throughput/productivity which will arise under the new arrangements.
Lead-in payment
The Company's offer should be increased to €1,587.
Annual Leave
The Company's offer of one additional shift should be accepted and a further additional shift should be conceded with effect from the leave year 2003/2004.
Compensation for Loss of Overtime Earnings
The Court recommends that loss under this heading, as it affects each individual, should be compensated by payment of a lump sum equal to twice the actual loss of overtime earnings. The parties should seek to agree a formula by which this loss can be measured. This should be based on the normal overtime earnings prior to the introduction of four-cycle shift earnings as compared to those which will arise when the new arrangements are in operation.
Realignment of Basic Rates
The Court recommends that the Company's proposal to appoint a mutually acceptable person to benchmark operations in Portarlington with those in Dublin and Cork should be accepted. The object of this exercise should be to identify what objective reasons, if any, justify the continuance of the differential.
Signed on behalf of the Labour Court
Kevin Duffy
12th April, 2002______________________
CON/MBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.