FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 S2(1), INDUSTRIAL RELATIONS (AMENDMENT) ACT, 2001, AS AMENDED BY THE INDUSTRIAL RELATIONS(MISCELLANEOUS PROVISIONS) ACT, 2004 PARTIES : COOLEY DISTILERY PLC (REPRESENTED BY MANAGEMENT SUPPORT SERVICES) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Grier Worker Member: Mr. Somers |
1. Referral from Labour Relations Commission under the Industrial Relations (Amendment) Act, 2001 as amended by the Industrial Relations (Miscellaneous Provisions) Act, 2004.
BACKGROUND:
2. The Company is based just north of Dundalk, Co Louth and is involved in the distilling, production and bottling of whiskey mainly for sale in the export market.
In July 2002 a number of workers joined the Union in an effort to seek representation on matters concerning their pay and conditions of employment. No resolution to the issues was obtained during 2003.
The Union referred the dispute to the Advisory Service of the Labour Relations Commission in 2004 and both sides met on the 10th June, 2004. No resolution could be found and the issue was referred to the Labour Court in accordance with Section 2(1) of the Industrial Relations (Amendment) Act, 2001, as amended by the Industrial Relations (Miscellaneous Provisions) Act, 2004, on the 18th June, 2004.
The issues before the Court concern the 1) Rate of pay, 2) Introduction of a Sick Pay Scheme, 3) Shift Allowance payments, 4) Terms and Conditions of employment including appropriate grievance and disciplinary procedures.
A Labour Court hearing took place on the 9th of July, 2004.
UNION'S ARGUMENTS:
Pay
3. 1. The Union is seeking a 20% increase in the basic hourly rate which is designed to take account of the differential that exists between the rates that are paid to similar workers in other companies.
Introduction of Sick Pay Scheme
2. Workers are currently required to use up their annual leave entitlement when they are absent due to illness if they are to receive any wages. This practice is not acceptable.
3. The Union are seeking the introduction of a Sick Pay Scheme that will provide 13 weeks full pay less Social Welfare Payments, 13 weeks at half pay less Social Welfare entitlements and 7 self-certified days per year.
Shift Allowance
4.The Union are seeking an increase on the 20% shift allowance currently being paid to workers in the Distilling section. This allowance is out of line with comparative employments.
Terms and Conditions of employment including Grievance and Disciplinary Procedures
5.Workers in this Company have no written terms and conditions of employment, nor a written contract.
6. The Company undertook to issue written terms and conditions of employment and the Union are now seeking to have thisimplemented.
7. The Union are also requesting that the Company put in place Disciplinary and Grievance procedures and practices that are consistent with the provisions of the Code of Practiceon Grievance and Disciplinary Procedures (S.I. 146 of 2000), and introduce a code of conduct for dealing with issues of bullying, harassment and intimidation.
COMPANY'S ARGUMENTS:
Pay
4. 1.TheCompany sought data from the Union to substantiate their pay claim but this was never provided.
Introduction of Sick Pay Scheme
2.The Company believe that this claim is extreme and that they are being compared with larger and wealthier companies.
Shift Allowance
3. The Company agreed the rate of 20% several years ago in exchange for a higher basic rate of pay. The Union are now seeking to raise the rate again.
Terms and Conditions of Employment including Grievance and Disciplinary Procedures
4. The Company are in the process of drawing up written terms and conditions of employment and these will contain Disciplinary and Grievance procedures and a policy on bullying and harassment.
RECOMMENDATION:
This dispute was referred to the Court pursuant to Section 2(1) of the Industrial Relations (Amendment) Act 2001, as amended by the Industrial Relations (Miscellaneous Provisions) Act 2004. The Court is satisfied that the conditions specified at Section 2(1)(a) to 2(1)(d) of the Act are fulfilled in this case and that the dispute is properly before the Court for investigation and recommendation.
It is the employers case that the issues in dispute should be referred back for local discussion and if necessary should be progressed through conciliation. Having regard to the time limits fixed for the processing of cases under the Act, set out in Sustaining Progress and now enshrined in The Enhanced Code of Practice on Voluntary Dispute Resolution (SI 76 of 2004), the Court does not believe that further delay in bringing this case to finality could be justified. Accordingly, the Court has proceeded to recommend on each of the Union's claims.
Pay.
This is a newly organised employment and the Union is not precluded by the terms of Sustaining Progress from making claims of a cost increasing nature where existing rates are out of line with appropriate standards.
The Union has referred the Court to rates agreed between it and other employments for similar work both locally and nationally. Whilst the circumstances of some of these employments are different to those of the employer in this case, they nonetheless provide an indication as to the range of pay rates established by collective bargaining for work of a similar nature.
The Court is satisfied that the rates of pay of those associated with this claim are out of line with appropriate standards and should be increased. The Court recommends that the rate for those employed in the distilling section be increased to €490 per 40 hour week and that the rate for those in the bottling hall be increased to €410 per 40 hour week. These rates should be regarded as inclusive of all phases of all ratified National Agreements and become applicable from 1st September, 2004. They should be increased in future by the application of National Agreements when they become due. For this purpose the first phase of the next National Agreement should be payable from 1st October 2004.
Introduction of a Sick Pay Scheme
The Court recommends that the Company introduce a sick pay scheme providing for eight weeks sick leave per year at full pay less social welfare. All sick leave should be covered by medical certificate. The scheme should apply to all employees who have completed their probationary period. The scheme should not operate in respect of the first 3 days of any illness.
Shift Allowance
The Court recommends that shift allowance be increased to 25%.
Disciplinary and Grievance Procedures
The employer should put in place a disciplinary and grievance procedure which conforms to the general provisions of the Code of Practice on Grievance and Disciplinary Procedures (S.I. 146 of 2000). Consistent with the Code, the Company procedure should provide for trade union representation in processing individual grievances and disciplinary matters, where an employee wishes to avail of such representation. The procedure should also provide for the full utilisation of the normal dispute resolution machinery of the State, including the reference of disputes to conciliation, the Rights Commissioner service and the Court, as appropriate.
This procedure should be put in place within one month from the date of this recommendation. Any submission that the Union wishes to make with regard to its content should be taken into consideration. If there is any dispute in relation to the compatibility of the proposed procedures with the Code of Practice, the question may be processed under Section 43 of the Industrial Relations Act 1990.
Procedures for Resolving Disputes
The Court cannot and does not recommend that the parties engage in collective bargaining in relation to terms and conditions of employment and nothing contained in this recommedation should be construed as providing for collective bargaining.
Where differences arise between the Company and employees in relation to their terms and conditions of employment, such issues should be processed through the grievance procedure referred to above and if unresolved should be processed through a Rights Commissioner or the Court as appropriate. No form of strike, industrial action or interference with normal working should be engaged in by either party until the procedures are resorted to and exhausted.
Other Issues
The Company should put in place policies on equal treatment, harassment and intimidation in the workplace. The Union should be permitted to make submissions on the content of such policies and their views should be taken into account.
Implementation
The recommendation herein should be implemented within one month from the date of this recommendation.
Signed on behalf of the Labour Court
Kevin Duffy
19th July, 2004______________________
MG.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.