FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ARNOTTS LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Murphy Worker Member: Mr O'Neill |
1. Change in warehouse function
BACKGROUND:
2. The dispute relates to the movement of the main warehouse functions in the Company's Henry Street store to a new custom-built site in Tallaght and the subsequent effect on staff. The number of workers involved varied between the parties from approximately 50-60 depending on seasonality and part-time workers. The Company claims that changes are necessary to ensure its future. It is seeking significantly different hours of operation in Henry Street, extension of the operating hours in Tallaght and flexible working across the general operative (GO) grade. The Union accepts in principle that the changes are necessary but maintains that the changes are major ones for long-term employees (nineteen pre-June 1996) and the employees moving to Tallaght.
- A number of meetings took place at local level and at conciliation conferences with the Labour Relations Commission (LRC) and while there was progress made on a small number of issues the remaining one are still in dispute :-
Redundancy
The Company is not seeking redundancies at present but acknowledge that the change to the "old / 5 day" worker would be significant and has offered 4 weeks' pay per year of service, including statutory, to a maximum of 2 years' earnings or €50,000 whichever is the greater.
Flexible Rosters
The Company's current position is as follows :
Tallaght- - Existing Staff with "old / 5 day" contracts could maintain Monday to Friday 9:00 to 5:30 working based on transferring to Tallaght
- Existing Staff on 6/7 day contracts could be accommodated on Monday to Saturday attendance (9:00 to 5:30) by transferring to Tallaght.
- For existing staff remaining in Henry Street, attendance time would be between 6:00 and 20:00 based on Monday to Saturday attendance
- All new staff recruited would be recruited based on 5 over 7 day attendance, operating flexible hours.
Henry Street
The revised operating system cannot facilitate any staff on old contracts remaining in Henry Street. The hours of operation will be:
- 06:00 to 20:00 daily on a Monday to Saturday basis
Pay Increase
The Union sought a 10% pay increase, which was rejected by the Company, plus an increase in service pay, index linking and merit pay. The Company offered a Christmas Bonus of one week's pay of €476.25 per annum which equals a 2% increase. It also offered to consolidate merit bonus and service pay into basic pay.
Holiday Entitlement
The Union sought 2 weeks' extra holiday pay which was rejected. "Old" contract staff have 21 days plus Good Friday and "New" contract staff have 24 days.
Public Holidays
No change is proposed for the existing (19) "old" contracts where public holiday working is voluntary and payment is double time for hours worked plus a day off in lieu. Public holiday working forms part of the normal roster for existing "new" contract staff. If rostered to work payment is at double time and a day off in lieu. For newly recruited staff statutory entitlements will apply and staff will be rostered to work public holidays as part of the normal working week. Christmas Day and St. Stephen's Day are the only non-working days.
Canteen Facilities
The Company has given a commitment to provide all appropriate facilities, including cleaning. A proposal was put to buy out the employees existing canteen subsidy based on 2 years cost of lunch - value €1,728.
Location / Flexibility
The Company has agreed that staff may be assigned a fixed location in either Tallaght or Henry Street. Where cover is required for holidays, illness, etc. staff may transfer on a voluntary basis to cover short term periods. Staff should be flexible covering all GO duties.
Compensation for Change & Transfer
The Company has proposed a compensation package as follows:
- Staff transferring to Tallaght will receive a €700 gross ex gratia payment.
- The cost of a Luas Pass (or cash equivalent) for a period of 6 months as a once-off lump sum valued at €280.
The offer was rejected by the Union.
Seniority on Transfer, Loss of Overtime
There was no real disagreement between the parties on these issues.
As the parties did not reach agreement at the LRC the dispute was referred to the Labour Court on the 26th of June, 2006, in accordance with Section 26(1) of the Industrial Relations Act 1990. A Labour Court hearing took place on the 16th of August, 2006.
- - Existing Staff with "old / 5 day" contracts could maintain Monday to Friday 9:00 to 5:30 working based on transferring to Tallaght
UNION'S ARGUMENTS:
3. 1. The workers view the Company's position as a total change to their contracts and conditions of employment built up over a long period of years.
2. Many of the workers concerned would not be classified as GOs. They work in specific sections / departments and should not be expected to cover all types of work.
3. The move to Tallaght will be a major change to workers' conditions as, traditionally, most employees in Arnotts have been from the north side of Dublin.
4. In a recent exit package with one of the Company's main competitors the exit package was not capped and was available to all members.
COMPANY'S ARGUMENTS:
4. 1. The changes sought are vital to sustain and protect the Company's business into the future. This has been acknowledged by the Union.
2. The Company has spent €700,000 in developing and upgrading the Tallaght warehouse.
3. The severance package proposed is very generous and will be extremely costly to the Company as workers who leave will have to be replaced. There are no redundancies as such.
4. The current level of demarcation within the GO grade is an unsustainable cost to the business. The Company requires the duties to be carried out by a team of GOs working flexibly.
RECOMMENDATION:
The Court accepts the level of urgency that applies to this case, and this recommendation, which should be considered as an integrated package, is aimed at achieving the early finalisation of these protracted negotiations. The Court also notes the Union's acceptance in principle of the need for changes in order to meet the challenges of competition and traffic regulation. Accordingly, the Court recommends as follows :-
Work Flexibility:
The implementation of the Company's proposals, on a common-sense basis, is necessary and should be accepted in principle by the Union.
Exit Package:
The Court notes that the Company does not require redundancies as such. In circumstances where some workers would find that major changes to their previous conditions of employment were too difficult to accept, the Court's view is that the package, as clarified at the hearing, of four weeks' pay per year of service including statutory entitlements, up to a maximum of two years' pay or €50,000 (whichever is the greater) is fair and reasonable and should be accepted.
Pay Increase:
The Court does not recommend concession of this claim, particularly in the light of the concessions already made in the areas of Christmas Bonus and the consolidation into basic pay of merit bonus and service pay.
Extra Holidays:
The Court is of the view that the holiday entitlements quoted are in line with accepted norms and does not recommend concession of this claim.
Public Holidays, Parking, Canteen Facilities and Voluntary Flexibility between Locations:
The Court recommends that the Company's positions on these matters be accepted as being fair and reasonable.
Seniority on Transfers.
The Court notes that the parties are agreed on this matter.
Loss of overtime:
The Court notes that the parties are agreed on this matter.
Pensions and Death in Service Benefit:
The Court notes that these matters are in the hands of the pension trustees and are not concluded.
Compensation for Relocation and Early Start / Late Finish Premia:
The Court considers that the Company offers in these areas are inadequate with regard to accepted norms. The Court recommends that the parties re-engage on these matters as quickly as possible and with the assistance of conciliation if deemed necessary. This process should be completed by 30th September, 2006.
The Court commends this package to the parties for their early consideration.
Signed on behalf of the Labour Court
Raymond McGee
23rd August, 2006______________________
CON/EWDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.