FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BANAGHER CONCRETE - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Grier Worker Member: Mr Nash |
1. Inclusion of overtime in holiday pay.
BACKGROUND:
2. Banagher Concrete, Co. Offaly was established in 1976. The main business of the Company is the production and supply of materials to the construction industry. It currently employs approximately two hundred and sixty workers. The Union's claim is for the inclusion of overtime payment whilst availing of annual leave for 160 workers. Presently, overtime is a regular feature of the working week.
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 8th September, 2004 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 22nd February, 2005.
UNION'S ARGUMENTS:
3.1 Workers who work overtime during a twelve month period received their holiday entitlements at a significant loss as holiday pay is paid out on basic pay only. Overtime is an integral part of the working pattern of the workforce.
2. Overtime is regular throughout the year and represents a hugely significant proportion of a workers overall wage packet.
3. The Company's profits have increased by 70% in the last year.
4. The Company currently makes significant savings by only paying overtime at time and a half before 8.00a.m. which is outside of the industrial norm. This loss is again compounded when the overtime earnings are not reflected in holiday pay.
5. The basic rate of pay is towards the lower end of the rates within the industry. Therefore, the Company cannot claim that they have an over generous pay packet structure vis a vis competitors.
COMPANY'S ARGUMENTS:
4.1 The rates of pay within the Company were agreed with the Trade Union over the years and the Company has applied all increases due under the National Agreements and has exceeded the National Agreements by up to 12%.
2. The cost of this claim in the region of €220,000 cannot be recovered from its customers. The Company would have to fund any such claim from the assets of the Company which are essential to meet it's ongoing investment and development programme.
3. The Company faces stiff competition with steel products and recently another precast concrete business entered the market. This has had an immediate effect as the Company has had to lower prices as a result of this new entrant.
4. The Company has been profitable for the most part over the past five years, due to very substantial increases in volumes, which have doubled over the past five years.
5. The Company must have the resources to maintain and modernise a state of the art technical department to keep abreast of precast concrete industry developments throughout the world.
6. The Company must provide product guarantees in many cases through collateral warranties to its clients which cannot be provided through liability issues.
RECOMMENDATION:
Having considered the views of the parties expressed in their oral and written submissions, and having investigated the nature of the overtime worked, the Court recommends that 50% of overtime earnings (up to a maximum of 48 hours work in any week) should be included in holiday pay. The overtime earnings should be calculated over the previous 52 weeks prior to the holidays.
Signed on behalf of the Labour Court
Caroline Jenkinson
28th_February, 2005______________________
JBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jackie Byrne, Court Secretary.