FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : MAYSTEEL TEO (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Changes to banked hours system.
BACKGROUND:
2. The Company employs approximately 100 workers.The issue in dispute relates to the Company's request to alter the way 'banked hours' are paid/taken by workers. When the 39 hour working week was introduced workers, up to that point, had traditionally worked a 40 hour week. In order to maintain productivity, it was agreed that the 40 hour working week would remain and the extra hour worked each week would be banked. The total banked 48 hours for the year had to be taken by the end of year. At present workers can use these hours to offset illness if they provide a valid medical certificate. Workers can use them as annual leave. If workers do not use these banked hours by the end of year they receive payment for them at Christmas. The Company has experienced serious trading difficulties resulting in rationalisation and redundancies. As part of this rationalisation and in order that production would not be disrupted, the Company, at local level discussions in November, 2003, proposed to remove the banked hours from workers effective from 31st December, 2003 and indicated that workers who accumulated banked hours up to this date would receive payment retrospectively for those hours at the rate of time and one half. From January, 2004 workers would continue to work a 40 hour week and would be paid the additional hour at the appropriate overtime rate i.e. time and one half. This would be paid to them on a weekly basis. The offer was rejected by the Union and the dispute was referred to the Labour Relations Commission. A conciliation conference was held on the 17th May, 2004 at which the Company put forward the following options:
1. Employees work a 39-hour week and working arrangements for Friday will be from 7.00 a.m. to 12.00 noon.
2. Employees continue to work the 40 hour week but get paid weekly for the extra hour worked rather than banking it. This hour to be paid at time and one half.
3. Employees can finish work fifteen minutes early Monday to Thursday on day shift, and if they couple this with foregoing the second fifteen minute break, employees on day shift could finish at 4.30 p.m. Monday to Thursday. A similar arrangement would be entered into in respect of the night shift or alternatively they would finish work at 2.30 a.m. on Friday morning.
The Union agreed to ballot the workforce and included a fourth option to leave the banked hours arrangement as it currently stands. The ballot outcome rejected the three Company proposals. The dispute was referred to the Labour Court on the 19th May, 2004 in accordance with Section 26 (1) of the Industrial Relations Act, 1990. A Court hearing was held in Galway on the 7th July, 2004.
UNION'S ARGUMENTS:
3. 1. The claimants have a clear attachment to the current arrangement. They view the arrangement as a condition of employment, enjoyed for many years and are reluctant to surrender it even when presented with what could be described reasonable options.
2. The claimants preference for the current arrangement enables them to avail of the time off in emergency situations. The ballot for rejection of Management's proposals was conclusive. The choice of the claimants should be respected.
COMPANY'S ARGUMENTS:
4. 1. The Company believes that the banked hours causes disruption to production and is very difficult to operate from an administrative point of view.
2. The Company feels that any of the three options it has proposed are fair and reasonable.
RECOMMENDATION:
The Court has considered the submissions of the parties and is satisfied that the Company has made out a compelling case for the termination of the present arrangements on banked hours.
The Court recommends that the arrangements be replaced with a Christmas bonus equal to the present banked hours at time and one half (72 hours pay).
Signed on behalf of the Labour Court
Kevin Duffy
22nd July, 2004______________________
todChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.