FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TIME PACKAGING LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Grier Worker Member: Mr O'Neill |
1. Buy-out of manning level agreement
BACKGROUND:
2. The Company manufactures packaging material mainly for the home market and operates from a facility located in Tallaght. The dispute concerns an agreement from 1995 in which the manning levels were set at 22. The current level is 19 and the Company states that this is because of over-capacity in the industry. The 1995 agreement provided for a buy-out of the manning levels if the number fell below 22. At a conciliation conference in April, 2005, a proposal was made which included a €300 per person net bonus at Christmas (details supplied to the Court). The proposal was rejected and the dispute was referred to the Labour Court on the 30th of May, 2005, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 23rd of August, 2005.
UNION'S ARGUMENTS:
3. 1. The Union put a proposal to management recently to increase the bonus but to keep the numbers at the current figure of 19. Management rejected the proposal.
2. The reduction in numbers will mean savings accruing to the Company. It can afford to increase the level of compensation.
COMPANY'S ARGUMENTS:
4. 1. The Company has no choice but to reduce the manning levels as there is simply not enough work for 22 people due to trading difficulties (details supplied to the Court).
2. The 1995 agreement was made at a time when the Company was in a much more competitive situation. Agreements have to change according to the needs of the industry.
RECOMMENDATION:
The Court notes the proposals agreed between the parties at conciliation and regards its terms as reasonable in the circumstances. In that respect, the Court does not believe that strict adherence to a specific immutable crewing level is viable regardless of the work requirement of the business. Accordingly, the Court recommends that the Union should agree to have the current agreement amended in the manner proposed at conciliation.
Taking account of all relevant considerations, the Court recommends that the bonus at conciliation be increased to one of €400 per year and that it be paid on the basis of €200 at an agreed date in the summer and €200 at Christmas.
Signed on behalf of the Labour Court
Kevin Duffy
5th September, 2005______________________
CONChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.