FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TYCO HEALTHCARE IRELAND LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Pierce Worker Member: Mr. Somers |
1. Allocation of efficiency payments to setter grade members.
BACKGROUND:
2. The Company is a subsidiary of a US multinational company, the Tyco Corporation. It currently employs 2,800 people at its eleven plants in Ireland. It acquired the Tullamore plant in February, 1998. In November, 1999, the Labour Court issued a recommendation, LCR16360, which recommended a €19.05 increase in basic pay with effect from 1st October, 1999 and efficiency payments of €4.44 at 82% efficiency, €4.44 at 85% and €3.81 at 87%. The efficiency levels were to be reached and maintained for six weeks.
The claim before the Court is for the application of LCR16360 to approximately 65 setters and craft grades in Tullamore. The Union contends that they were party to the original claim in 1999, while the Company maintains that they were not. The issue was the subject of a conciliation conference on the 23rd of November, 2000, under the auspices of the Labour Relations Commission. Agreement was not reached and the dispute was referred to the Labour Court on the 8th of February, 2001, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute in Tullamore on the 29th of January, 2002, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. Setters have always been regarded as general operative grade with additional responsibilities. An analogous group to the setters are the quality controllers, who enjoy a premium over and above the general operative grade and who also benefit from the efficiency payments.
2. The inclusion of the craft and setter grades to increasing machine uptime is crucial if the full potential of the efficiency bonus is to be reached, i.e. a total of €13.33. To date, only the first instalment of €4.44 has been paid.
3. The claimants were originally part of a failed gainsharing initiative, which was later subsumed into LCR16360. They make a valuable contribution to overall efficiency and should not be discriminated against. The Union’s initial claim was to retain existing differentials and these should now be restored.
COMPANY'S ARGUMENTS:
4. 1. The setter and craft grades were not part of the initial claim. In the Union’s submission to the Labour Court, the Union stated that their reason for pursuing the claim on behalf of the other grades was “on foot of significant increases for Craft and Setter Grades”.
2. The Union acknowledged that the craft and setter grades were already catered for as they had received wage increases, related to skill levels, in the summer of 1999. These increases precipitated the demand from the other grades for a similar increase. A successful outcome to this claim would act as a catalyst for another claim by the other grades.
3. The parties did not consider that the setter and craft grades were part of the initial claim in 1999, which culminated in LCR16360. In essence, the present claim is spurious as its reasoning is based on an erroneous assumption that relativities should be maintained.
RECOMMENDATION:
Having given consideration to the submissions of the parties, the Court can see no basis for conceding the claim for restoration of the relativities. However, it seems reasonable that the contribution of the craft and setter grades to labour production should be recognised and that this contribution should be recognised by the payment of efficiency payments. It is accepted that the current basis of the scheme would militate against this and, therefore, this could not be done at the present time.
Accordingly, the Court recommends that when the promised new machines are in operation, the Company should at that point include the craft and setter grades in the efficiency payment scheme. According to the Company, this is due to commence within months.
Signed on behalf of the Labour Court
Caroline Jenkinson
15th February, 2002______________________
D.G./C.C.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.