FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : STURDY PRODUCTS LTD (REPRESENTED BY MANAGEMENT SUPPORT SERVICES) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. 1. Pay, 2. Shift Premium 3. Overtime 4. Sick Pay.
BACKGROUND:
2. The Company manufactures and acts as an agent for imported rotationally moulded products such as wheelie bins and central heating oil tanks, and has being in business for 27 years and currently employs a total of 52 staff, 29 of which are manufacturing operatives. Some of these operatives were sourced by the Company in the Philippines, while others come from other foreign countries consequently some have problems understanding the English language. The Union has made representations regarding a number of issues including levels of pay rates, shift premia, overtime pay rates and the extension of the Company's sick pay scheme to all Employees. The Company states that due to current market trends such an increase in operating costs would undermine its future viability.
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 6th March 2007 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 29th June 2007.
UNION'S ARGUMENTS:
3. 1. An immediate flat rate pay increase of 8.7% across the board to apply and the application date of "Towards 2016" should be revised and backdated to 1st. January 2006.
2. A shift rate premium of 33.3% to apply, which is the industrial norm.
3. Time and a half payable for overtime up to 4 hours and double time thereafter, which is also the industrial norm.
4. All Employees should be entitled to join the Company's Sick Pay Scheme.
COMPANY'S ARGUMENTS:
4. 1. A pay increase of 3% was applied from 01/01/2006 and the terms of the first phase of "Towards 2016" was implemented coming into effect the following December, the second phase was implemented on 01/06/2007.
2. The basic rate of pay had been previously increased to take account of any overtime worked.
3. Any additional pay increases for shift work could put the long term viability of the Company at risk.
4. The Company has experienced contraction in the Irish Market and is losing market share to U.K. competitors that can undercut prices by at least 20%.
RECOMMENDATION:
Having heard both sides and read their extensive submissions, the Court is very concerned at the lack of engagement between the parties.
The Court recommends that:
(a) A defined shift premium should be agreed.
(b) There should be defined overtime rates.
(c) "Towards 2016" should be paid with effect from an earlier date than December 2006.
(d) There should be a sick pay scheme for general Workers.
These issues should be discussed by the parties with a view to agreement. The services of an Industrial Relations Officer of the L.R.C. should be used in order to facilitate full and open engagement between the parties.
The process should be concluded within two months of the date of this recommendation. Any unresolved issues can then be put to the Court for final recommendation.
Signed on behalf of the Labour Court
Raymond McGee
9th July 2007______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.