FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DIAGEO BAILEY GLOBAL SUPPLY - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Rationalisation
BACKGROUND:
2. The Company supplies the world-wide demand for Baileys Irish Cream. Until July 2003, the market was supplied from one site in Nangor Road, Dublin. A second site has now been established in Belfast. The dispute relates to 97 workers and 20 long-term temporary employees in the bottling area. The Company believes that the Dublin site is uncompetitive, hence the need for rationalisation. The 2 main issues in dispute are severance terms in a voluntary redundancy scheme ( the Company is seeking a reduction of 28 positions), and pay rates. The Union is agreeable in principle to the rationalisation but not to the terms offered by the Company. A third issue relates to the redeployment of 2 craft helpers into the bottling area, something which the Union is opposed to. The Company has proposed a 12-15 day training scheme as part of the rationalisation.
The Company's final offer on pay was as follows:
1. The standard Operator rate going forward will be € 616 per week (inclusive of shift allowance)
2. Payable in 2 phases, (2% and 2%) contingent on successful completion of the training programme by each operator.
3. This increase is equivalent to 4% on the rate paid to the majority of operators at present (€ 592). It represents an 8% increase for general operatives (25) who are currently paid less than € 592.
4. Those currently above the new Standard Operator rate will get a 2% increase, red-circled and personal to holder (national pay awards to apply), and a lump sum to compensate for the 2% increase "foregone". The compensation lump sum is 1 x annual loss of the balance 2% increase foregone.
The Company 's offer on voluntary redundancy is as follows:
5 weeks' pay per year of service plus statutory.
Reckonable pay to include overtime as follows: an average of total overtime worked in 2000 and 2001 plus the lump sum compensation (65%) paid in 2002. .
Statutory to be defined as old statutory plus incremental rebate.
2 year cap inclusive of statutory.
The Union was seeking the following:
10 weeks' pay per year of service.
New statutory terms.
No cap.
The Union has also sought improvements on the following:- service pay, sick pay scheme, wine/spirit allowance and a yearly attendance payment but the Company stated at the hearing that it would not negotiate on these.
The dispute was referred to the Labour Relations Commission and a number of conciliation conferences took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 23rd of July, 2003, in accordance with Section 26 (1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 21st of August, 2003.
COMPANY'S ARGUMENTS:
3. 1. The Company is seeking to modernise the role of the operator in the Dublin site. At present it is overmanned, skill levels are low and flexibility is poor.
2. There will be a 13-15 day training programme to develop proficiency in operating a second machine and in broadening the role.
3. The Company believes that the remuneration package on offer is very generous and that, because of this, the workers should have a level of skill and flexibility in the top of the range.
4. The existing voluntary redundancy terms are favourable but the Company has made significant improvements on them. It increases the payout by approximately €30,000 for a person with 23 years' service.
UNION'S ARGUMENTS:
4. 1. The Company is extremely successful, with Baileys being the 8th largest spirit brand in the world. In that content, the Company's offer of 5 weeks' pay per year of service for the voluntary redundancy is not generous and should be improved.
2. The 2 year cap restricts members from achieving the full value of the formula on offer.
3. The Company's offer would mean that someone with 25 years' service would only get the same redundancy package as someone with 20 years' service.
4. The Company has refused to make any concession on the Union's claim in regard to service pay, sick pay scheme, wine spirit allowance and the yearly attendance payment.
RECOMMENDATION:
The Court has given careful consideration to the submissions of both parties. In making its recommendation, the Court has had regard to the following:
-the Dublin plant must become more competitive, future investment is dependent on improving efficiency and reducing costs,
-both the Company and the Union are agreed in principle on the cost reduction measures required,
-the terms of the voluntary severance, the pay rates for operatives in the bottling plant and the redeployment of two craft helpers are the issue in dispute between the parties.
Voluntary Severance Terms
The Court is of the view that the voluntary severance terms on offer represent a significant increase on the original terms offered and, in terms of overall severance packages, is a very generous one. Accordingly, the Court recommends that the terms outlined to the Court as Offer 3, should be accepted by the Union.
Pay Rates
The Company's proposals on pay as outlined at the hearing include four elements. The Court recommends an improvement to this proposal, the first 2% due should be increased to 3%, and a third phase of 2% is also recommended to take effect four months following the implemention of the new process.
Therefore, the offer at point 2 should read:
Payable in three phases:
- 3% on successful completion of phase one of the training programme by each operator
- 2% on successful completion of the full training programme by each operator,
- 2% four months following implementation of the new process
Point 1, 3 and 4 of the Company's proposal should be amended accordingly. The Court further recommends that a compensation lump sum for the 2% "foregone" for those currently above the new Standard Operators rate should be two years the annual loss. Therefore, the offer at point 4 should read:
Those currently above the new Standard Operator rate will receive a 3% increase, red-circled and personal to holder (national pay awards to apply), and a lump sum to compensate for the 2% increase "foregone". The compensation lump sum will be 2 x annual loss. The third phase 2% increase to apply four months following implementation of the new process to this group.
Redeployment of Two Craft Helpers
The Court is of the view that, given their origin in the bottling plant, in the circumstances that the two craft helpers now find themselves in, they should be allowed the choice of returning to the bottling plant. Therefore, the Court recommends that the Union should accept their redeployment to the bottling plant as part of the overall package on offer.
Signed on behalf of the Labour Court
Caroline Jenkinson
15th September, 2003______________________
CON/BBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.