FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ODLUM GROUP (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. 1. Loss of Shift 2. Payment for Restructuring.
BACKGROUND:
2. The Union's claim on behalf of 38 workers arises as a result of the Company's proposal to introduce a restructuring programme involving redundancies, the termination of shift working and the introduction of new working practices at its plant in Portarlington.. The issue of redundancy has been resolved and 8 workers were declared redundant. Agreement has not been reached on compensation for loss of shift and compensation for cooperation with restructuring. The Union is seeking compensation in the amount of one year's loss in respect of loss of shift and a payment of €5,000 for cooperation with the restructuring. The Company offered €1000 for the elimination of shift working and €300 in respect of cooperation with change. The Union rejected the Company's offer. 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 on the 19th April, 2005 in accordance with Section 26(1) of the Industrial Relation Act, 1990. A Court hearing was held on the 4th July, 2005.
UNION'S ARGUMENTS:
3. 1.Loss of Shift. The claimants worked rotating shift patterns for a number of years. The shift premium has been regular and structured for the past five years. The elimination of the shift premium represents a loss of €100 per week per worker.
2.Restructuring.The Company is making savings due to the implementation of 8 redundancies and the workers remaining should be compensated for their cooperation with significant changes provided for under the restructuring plan.
COMPANY'S ARGUMENTS:
4. 1.Loss of Shift. The Company's offer of €1,000 to compensate a limited number of workers affected is generous but Management reserves the right to re-introduce a shift in the future.
2.Restructuring.The claim for payment for restructuring is unwarranted. The readjustments required by the Company are in line with normal ongoing change and do not add to or adjust employees' work or terms of employment. The Company's offer of €300 is fair and reasonable as the amended work practices are minimal and within the terms of the Sustaining Progress agreement.
RECOMMENDATION:
Two issues were presented to the Court for adjudication:
Loss of Shift Premium
As part of a major restructuring plan, the Company intend to change the working pattern from a 2-shift system to normal day working -8am to 5pm. The Union sought compensation for the loss of earnings associated with the shift premium. The Court notes that the Company offered to pay €1,000 (10 weeks loss of shift premium) compensation.
The Court has considered the views of the parties expressed in their oral written submissions, and notes that there is some uncertainty about the nature of this change in working hours. Both sides are of the view that this change may not be permanent, therefore the Court recommends that compensation should be paid on a phased basis, as follows:-
- €1,300 on the introduction of the new working hours,
o€1,300 after a period of 4 months
o€1,300 after a period of a further 4 months
o€1,300 after a period of a further 4 months (i.e. 12 months in total).
This compensation is recommended in full and final settlement of this claim.
Payment for Restructuring.
The Union sought €5,000 as a once off payment for the substantial changes involved in the Company's restructuring plans. On the other hand, the Company were of the view that the changes envisaged, were not substantial and should be considered as normal ongoing change as provided by the terms of clause 1.8 of Sustaining Progress. However, as a gesture of goodwill it offered payment of €300 to each employee for their co-operation with the plans.
Having considered the views of the parties expressed and in all the circumstances, the Court recommends that the Company's offer should be increased to €500 in return for full co-operation with the Company's restructuring plans.
Signed on behalf of the Labour Court
Caroline Jenkinson
8th July, 2005______________________
todDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.