FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GLANBIA, ARKLOW - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Grier Worker Member: Mr Nash |
1. (1)Redundancy Package; (2) Rates of Pay; (3) Lead-in payment regarding Site Comprehensive Agreement; (4) Staggered Tea Breaks.
BACKGROUND:
2. The dispute concerns general operatives and laboratory staff who are employed at the Company's plant at Inch, Co. Wexford. The site is the manufacturing unit for Yoghurt and part of the consumer food division of Glanbia. The Company is experiencing significant difficulty in the marketplace. It is seeking to reduce manufacturing costs at the site in order to remain competitive. In November, 2004 the Company and the Union commenced discussions on a Site Comprehensive Agreement. The Agreement provides for a reduction in manufacturing staff numbers and full co-operation with changed work practices as well as flexibility and interchangeability. Acceptance in principle has been achieved subject to the resolution of outstanding issues as follows:
Company Position
1.Redundancy Terms.
4.5 weeks pay per year of service inclusive of statutory entitlements, based on last year's (2004) P60 up to a maximum of €90,000.
2.Rates of pay at Inch.
Currently there are a number of payment structures on site. A salary payment system, a laboratory hourly rate and a series of other hourly paid rates across the factory.
The Company proposes that the current rate of pay only be red- circled to the operators that will remain on the existing salary systems. This applies to the rate of pay only. The Company also proposes that the current rate of pay be red-circled to the operators that will remain on the existing laboratory pay scale. For all other hourly paid employees the Company proposes that one rate of pay €595.79 gross per 39 hour week (i.e Yoghurt Makers Grade) would apply.
3.Lead - in Payment.
On acceptance of the Agreement the Company is offering €1,500. This payment will be made in three stages as follows:
1 - One third (€500) paid on first day of full implementation of agreement.
2 - One third (€500) paid on 1st January, 2006
3 - One third (€500) paid on 1st September, 2006.
4.Tea Break Payments.
The Company proposes to offer a number of named workers a buy-out payment equivalent to 1.2 times the actual figure paid for the 12 month period ending on 31st July, 2004.
Union's position.
1.Redundancy Terms.
The Union is seeking the application of the last agreement paid on site in 1997 details of which are as follows:
Six weeks pay per year of service, capped at £100,000 (€126,973.80)plus statutory entitlements.
Lump sum of £6,000 (€ 7618.43)
Pay in lieu of notice
Payments to be based on best P60 over three years
2.Pay rates.
There is broad agreement on the two rates of pay
€595.79 (Yoghurt Maker)
€662.92 (42 hour week 12 hour operators)
However, the Union is seeking an increase in the rate of €595.79 in respect of 11operators already on this rate of pay.
3.Lead - in payment.
The Union's claim is for a lead - in payment of €15,000.
4.Tea Breaks.
Payment for staggering of breaks (€12 for each staggered break) should remain as at present.
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 6th May, 2005 in accordance with Section 26 (1) of the Industrial Relations Act, 1990. A Court hearing was held on the 12th May, 2005.
UNION'S ARGUMENTS:
3. 1.Redundancy terms.Payment of the terms of the 1997 agreement is totally valid in the context of the present proposals. In the past eighteen months this exact deal was paid in negotiations with tanker drivers in Clonroche depot.
- 2. There are clear examples of severance packages, paid locally and in the region, in excess of the Company proposal.
3. This is a major Company which already has a clear agreement, with the provision for future index linking in it. The 1997 package was designed for this exact type of overall restructuring.
- 4.Pay Rates.There are 11 operators already on the rate of €595.79. These eleven should be placed on a personalised red-circle rate comprising of a differential between the general rate and €595.79 i.e. €41.09 This would be personal to them. There would be full acceptance of this situation and the differential would cease with them.
6.Tea Breaks. The new hourly rate inclusive of the €12 "tea break" money is €15.7837. This payment should remain in place, as to expect the majority of the workforce to stagger breaks for nothing while the 12 hour employees have been and continue to be paid for them is inequitable.
COMPANY'S ARGUMENTS:
4. 1.Redundancy terms. This has been the Company's position on redundancy for the last number of years as evidenced in the plants at Rooskey, Finglas and Knockmitten.
2.Pay Rates.The Company would apply the new pay rate of €595.79 in the following way and subject to the following conditions;
(i) Full implementation of the Site Comprehensive Agreement from the agreed date in line with the rest of the factory with full flexibility and interchangeability as contained in Section 22 of the Site Comprehensive Agreement..
(ii) The agreed manning levels are fully accepted and implemented.
(iii) All other employees not on the above rate would move towards the above rate on a three phase catch up basis of one third and one third on the same dates as the first two instalments of the lead-in payment and the final third when the new manning levels are fully implemented.
(iv) There will be no further "maintain the differential" claims.
The Company understands that all employees will cooperate fully with whatever training /familiarisation is required.
- 3.Lead - in payment.The Company's offer of €1,500 is to every worker who will remain on site on completion of new manning levels.
4.Tea Breaks. The Company is strongly opposed to adding this payment onto basic rates of pay given the current uncompetitive cost base at Inch.
RECOMMENDATION:
The Court recommends as follows in relation to each of the issues in dispute:
Redundancy.
The Court recommends that the Company's offer be improved so as to provide for 6 weeks pay per year of service inclusive of statutory entitlements and with a cap of €120,000. The other aspects of the offer should remain as proposed.
Rates of Pay.
The Employer's offer on new pay rates should be accepted. The issue raised in relation to the 11 staff members who are already on rates equal to the proposed new rate should be addressed by the application of an additional lead-in payment of €2,500 to each person concerned (in addition to that recommended below).
Lead -in payment.
The Court recommends that a lead-in payment of €4,500 be paid.
Tea Breaks/Continuous Working.
The Court recommends that the Company's offer of a buy -out of this benefit should be accepted with the rate of buy-out being increased to 1.5 times the value.
With these modifications the proposed agreement should now be adopted.
Signed on behalf of the Labour Court
Kevin Duffy
18th May, 2005______________________
todChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.