FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : THERMO KING EUROPE (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AMALGAMATED ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Carberry Worker Member: Mr. Somers |
1. Grade claim for storesperson.
BACKGROUND:
2. Thermo King designs and manufactures transport temperature control units. It commenced operation in Galway in May, 1976 and employs approximately 550 people.
The claim relates to an upgrade from Grade 6 to Grade 8 for approximately 16 store persons employed in Thermo King. Both the Irish Productivity Centre (IPC) and KPMG Consulting have carried out job evaluations. The Union believes that its members have co-operated with ongoing major change in their work practices and responsibilities but have failed to secure any recognition for these endeavours. The Company believes that work practices amount to no more than ongoing change with new technology.
- The dispute was referred to the Labour Relations Commission and a conciliation conference took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 5th March, 2002, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place in Galway on the 16th October, 2002, the earliest date suitable to both parties.
2. KPMG Consulting was commissioned to conduct an Independent Evaluation Study. The report carried out by KPMG cites certain anomalies in the evaluation process used by the Company and the Union. The Union accepted the KPMG report but believed the concerns highlighted regarding the Thermo King Job Evaluation Model needed to be taken into account.
- 3. The Union's position is that the "natural break" principle has to be applied after any evaluation, to the points result, to equate the correct grade to it.
4. The Company has failed to comply with Section 2 of the Terms of Reference on agreed Evaluations.
4. 1. National Pay Agreements, including the current Programme for Prosperity and Fairness(PPF) have clauses requiring co-operation with ongoing change.
2. The claim is cost-increasing.
3 There has been no turnover of staff in the Stores Department indicating that labour market rates for similar jobs outside Thermo King are not attractive to Thermo King employees.
4. The Company can agree to develop a new job evaluation system The cautionary note contained in the KPMG report on maintaining internal equity with any job evaluation system is noted by the Company.
5. The Company is willing to set up a modern job evaluation system in agreement with the Union and with the assistance of any outside third party.
RECOMMENDATION:
It is clear from the submissions made during the hearing and indeed by the comments made by Consultants that the present Evaluation Scheme does not meet current requirements.
Having considered the background to this case the Court recommends that the Company take immediate steps to put in position an acceptable Evaluation Scheme, with the objective of having it in position within 12 months. At that time this job should be reviewed.
Signed on behalf of the Labour Court
Finbarr Flood
29th October, 2002______________________
CH/MB.
Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Caroline Hayes, Court Secretary.