FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PFIZER IRELAND (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Doherty Worker Member: Mr Nash |
1. 1. Sick Pay Scheme 2. Holiday Entitlements
BACKGROUND:
2. Pfizer Ireland Pharmaceuticals based at Ringaskiddy, Co. Cork is part of a Multi National organisation, with its headquarters in the United States. In Ireland there are approximately 1800 employed by the Company. In 2003, Pfizer Ireland integrated with Pharmacia and Upjohn to create Pfizer Incherra. Pfizer Inceherra offered to integrate the pay and conditions of employment of the Incherra to those applying in the Ringaskiddy site. The dispute before the Court concerns a claim by the Union for an improved Sick Pay Scheme for approximately 200 Operators employed at the Irish Parent Company at Ringaskiddy and increased Annual Leave entitlements for operators working 2 shift cycle employed in the Warehouse at the Plant. The Company rejects the claims on the basis that they are not justified.
The dispute could not be resolved at local level and was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 29th October, 2004, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 6th April, 2005, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Sick Pay Scheme that applies in Incherra is superior to that applying in Ringaskiddy. The practice applying in Incherra after 13 weeks is that the individual receives two-thirds pay for the remainder of the illness or until the Income Continuance commences which is normally 26 weeks. The Scheme in operation at Incherra is now being sought for the Ringaskiddy site on an individual rather than a group basis. The reason for this is that no individual should effect another's entitlement.
2.The practice in the Company has been to engage with the Unions on a three yearly basis on improvements to the Pay and Benefits package of the workers. The Unions did request engagement again on completion of the previous agreement, which concluded in December 2002. Their request was denied by Management. It is totally reasonable in these circumstances, that the workers would seek improvements to the sick pay scheme as it allowed under Clause 4.1 of Sustaining Progress, and the standard being compared to is within the overall Pfizer group.
3. The Operators working the 2 shift cycle are treated as Shift Operators in all others respects except for Annual Leave entitlements. They are being treated less favourably than their colleagues on a 4 shift cycle in that they lose their Day Workers Allowance when they work the 2 shift cycle. In the circumstances they deserve to have an increase in their Annual Leave entitlements and a 16.6% improvement is being sought, resulting in an extra 2.5 days in addition to their 21 days allowance.
4. It is entirely reasonable that employees who are required to work a shift arrangement, at the request of the Company, would receive Annual Leave entitlements on a pro rata basis to their colleagues who are in receipt of 5 extra Annual leave days for working a 4 shift cycle.
COMPANY'S ARGUMENTS:
4. 1. Arising from the Merger between Pfizer and the other Companies, a policy decision was made to have harmonisation on rates of pay and conditions of employment in the Pfizer plants. The Ringaskiddy Plant was selected as the benchmark. The Unions were fully briefed on this policy, broadly welcomed it and have been involved in the implementation process.The Unions claims would seriously conflict with the Harmonisation Policy. Any differences that currently exist in the Sick Pay Schemes between the plants will disappear once the Incherra pay and conditions are integrated with those of Ringaskiddy under the Harmonisation Programme.
2. The claim in relation to Annual Leave is inadmissible under Clause 1.5 of the Sustaining Progress Agreement.
3. The Company is currently experiencing challenges and problems that have serious cost implications. Other Pfizer plants have closed in other Countries. This is indicative of the rationalisation that is being caused by major restructuring worldwide in the organisation, product and cost competitiveness. There is major pressure now on the management of costs. In pursuing these claims, the Union appears to have taken a narrow and unrealistic perspective. Any increase in costs is carried forward into the future.
4. The integration of the Incherra and Ringaskiddy plants will result in a monetary benefit for the workers. The claims are in serious conflict with the principles and practice of the Company Harmonisation Programme which will give the employees significant benefits.There is no valid or justifiable reason for increasing the Company's costs.
RECOMMENDATION:
The Court having heard the written and oral submissions of the parties, makes the following recommendations:
Holiday Entitlements
This is a claim based on the comparison between shift workers on four cycle and the introduced 2001 two cycle shift, internal to the Pfizer Ringaskiddy plant.
The Court recommends an increase of a further one day's holiday for those on the two shift cycle.
Sick Pay Scheme
The Court recommends that the Sick Pay Scheme on the Ringaskiddy site be amended so that it is individually rather than group based.
Signed on behalf of the Labour Court
Raymond McGee
4th August 2005______________________
JO'CDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Joanne O'Connor, Court Secretary.