FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : PFIZER (IRE) LTD - AND - TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Grier Worker Member: Ms Ni Mhurchu |
1. 1. Shift Premium 2. Overtime Payments.
BACKGROUND:
2. The Pfizer Sterile Manufacturing site is based in Dun Laoghaire, Co. Dublin and is part of the overall Pfizer Global Manufacturing Group. The Company manufactures freeze dried and liquid produce for the prescription drug market. The Dublin facility is in operation since 1976 and currently employs 240 permanent/contract workers, 22 of whom are members of the TEEU. The Pfizer/TEEU Agreements provide for the introduction of shift working as required by the business.
The dispute concerns a temporary shift pattern covering a 24/7 - 4 shift rota operated by the Utility Technicians. The claim by the Union is for:
- •Payment of a 42% shift premium for the unique and allegedly onerous shifts worked for a period of 8 weeks during the summer of 2006; and
•Payment of all overtime at double time in accordance with the terms of the current Agreement with the Company.
The dispute was referred to the Labour Court on the 31st May, 2006 in accordance with Section 20(2) of the Industrial Relations Act, 1969 and both parties agreed to be bound the recommendation. A Labour Court hearing took place on the 27th September, 2006
UNION'S ARGUMENTS:
3.1Shift Premium:
The normal shift premiums applicable to 24/7 4 cycle shift is 33.3% in accordance with the terms of the Agreement. The Company sought to introduce a significant variation to the normal cover provided by the craft workers who are required to work 12 hour shifts over 7 days.
2. What the Company required was a unique and onerous shift of 1 x 12 hour nights with a recovery period of 3 days. (referred to as 1-2-3). The significant difference between the two patterns is that under the 24/7 4 cycle shift the workers work 50% nights and 50% days. While under the 1-2-3 shift the workers are working 2/3 of this time on nights and 1/3 on days. Night work normally attracts a premium of 50%.
1.Overtime :
The Current Agreement between the Company and Union is explicit and reads as follows:Clause (b) specifies:overtime rates for 12 hour shift employees shall be at double time, except at weekends where the provision outlined in 7(a) weekend apply.
2.The Union contends that a 12 hour x 7 day shift is more onerous than a 12 hour x 5 days shift with weekends off and therefore the terms of the Agreement should apply, whereby overtime is paid for all hours worked in excess of the shift roster with the proviso for Saturday as specified in 7(a) of Agreement.
COMPANY'S ARGUMENTS:
4.1Shift Premium:
The Company/Union agreement provides for the introduction of shift working. It is essential that 24/7 shift working be implemented to support the business structure and to ensure the Plant remains competitive.
2. The issue of shift premium for a 4 shift system has been agreed in principle at 33.3% and the request for a 42% shift premium for the temporary shift is unreasonable.
1.Overtime
The standard terms and conditions for payment of overtime within the craft group for 1.5 for the first 4 hours and double thereafter. These overtime rates have been practised on the pharmaceutical site for the past 26 years.
2. Double overtime payment does not reflect industry norm and cannot be sustained in the current economic environment.
RECOMMENDATION:
The Court recommends as follows:
(1) Shift Premium:
The Court is of the view that the rate of33.3% is adequate compensation when considered on a global basis, and so recommends.
(2) Overtime:
The Court is of the view that the Union's interpretation of Clause 7(b) of the current agreement is correct and recommends that the Union's claim on this matter be conceded.
The Court also notes the question of the competitiveness of the Company in a multinational decision-making process, and would encourage both parties to deal with issues arising between them expeditiously and fairly in the overall interest of both Pfizer Ireland, its employees and management.
Signed on behalf of the Labour Court
Raymond McGee
2nd October, 2006______________________
JBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jackie Byrne, Court Secretary.