FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GALLAHER DUBLIN LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Promotions, loss of potential earnings.
BACKGROUND:
2. The dispute concerns operatives employed in the Company's Distribution Warehouse in Tallaght. The Union is claiming compensation on behalf of these workers for loss of promotions, changes in work practices and loss of potential earnings. The Union's claim arises from the Company's proposal to contract out its vans resulting from a restructuring of the Company. The Company ceased production in December, 2003 and 110 workers were declared redundant. The remaining workforce consists of Administrative, Sales and Despatch Workers. There are two vans and four crew members with a named relief driver working as warehouse operatives. One warehouse operative is on Grade 7 and holds his rate and maintains his daily lunch allowance
(€14.34) when he is on driving duties. Four warehouse operatives work as relief drivers, when required, and receive Grade 7 and the daily lunch allowance. One of the five will be opting for redundancy, on resolution of this issue. Of a total of 25 warehouse operatives, 8 will be availing of redundancy. The Company rejected the Union's claim, on behalf of the remaining operatives, for compensation. The dispute was referred to the Labour Relations Commission. A conciliation conference was held but agreement was not reached. The dispute was referred to the Labour Court in February, 2004 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Court hearing was held on the 24th March, 2004.
UNION'S ARGUMENTS:
3. 1 A competitor company, in contracting out transport as part of a larger new site development included Warehouse staff in a 10% pay improvement going forward. There was very little change in the category but their inclusion was agreed in an overall plant that closed an old site, opened a new factory and achieved a halving of the workforce. The Gallaher plant is comparable as it was a complete closure of production and includes contracting out of transport.
2. Van driving represents a source of additional earnings when doing relief work i.e acting up at Grade 7 pay, and lunch allowance. A promotional outlet, and the opportunity to relocate across the employment is terminated.
3 The Company's plan is now delayed but the issue could be resolved by payment of compensation to staff in a new contracting out agreement.
COMPANY'S ARGUMENTS:
4. 1. The claim is unjustified and that the payment received by the Warehouse Operatives, when used, is fair and reasonable.
2. The issue of promotions is without foundation as the appointments and positions were made redundant within the Company and workers were aware of the changes. There may be, however, positions in other areas that may arise from time to time. It is agreed that the current Chargehand job in the Warehouse will be taking redundancy. This post will be re-filled and thus enable an open competition. It is open to all employees to apply for this higher paid position..
3. The grade structures are in accordance with the role, responsibility and type of job. Any regrade is without foundation.
4. Several jobs of various grades have been lost and the Company has negotiated such changes. No other group has sought compensation.
RECOMMENDATION:
On the basis of the information placed before it the Court cannot see any sustainable basis upon which a claim, based solely on compensation for potential promotions, can be sustained in this case. The Court does, however, believe that if it can be established that the contracting out of the transport activity will result in significant cost savings the employees could reasonably expect some share in those savings.
The Court recommends that the Company should provide the Union with information concerning the savings, if any, which will accrue from contracting out this service. If there are any significant gains, discussions should take place between the parties with a view to providing employees with some share of those gains.
Signed on behalf of the Labour Court
Kevin Duffy
5th April, 2004
tod______________________
Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.