FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : FLAIR INTERNATIONAL (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. 1. Training Allowance 2. Retiming of certain jobs 3. Machine Shop set-up times 4. Recording start / stop times 5. Absence Procedure.
BACKGROUND:
2. The Company manufactures showers and other bathroom products at its factory in Bailieborough, Co Cavan. It operates in a highly competitive market mainly due to imports from Eastern Europe and the Far East. The Company is seeking to improve the cost competitiveness of producing in Ireland by sourcing raw materials in the Far East. To further improve cost competitiveness the Company is seeking efficiencies to enable a reduction in the manufacturing cost base.
At a Company Briefing to the Union Committee on 17th August 2006 a set of proposals were put forward. These proposals were put forward to a General Meeting of the Union members and rejected.
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 23rd March, 2007, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 25th October, 2007.
UNION'S ARGUMENTS:
Code 70 Training/ Re-timing of certain jobs/ Set-up times
3. 1.The current Bonus Scheme was introduced in 1999. At that time all jobs were measured by the Company's Industrial Engineer and it was agreed that they would not be re-timed unless substantial change took place. The Union could not countenance asking one-third of the membership to have their jobs re-timed just because Management considered they were overperforming.
2. The current Scheme provides for payment of average earnings for a period of four weeks when moved to a new position within the Company. The Union maintains that there is no incentive to reduce this period and have suggested to the Company that the fairest way to introduce change would be to discard the current Scheme altogether and negotiate a new Scheme.
Recording of Downtime and Scrap
3.During downtime employees in the Machine Shop are paid the factory average rather than the individual average as applies throughout the Plant during downtime. The offer of €200 by the Company to cover retrospection of the loss incurred due to the incorrect application of the terms of the Bonus Scheme was rejected by the Union members.
Absence Procedure
4. The Company position is that the Sick Pay Scheme needs to be re-negotiated to provide for a reduction in entitlement and a revision of the terms of eligibility. To date no proposals have been forthcoming.
COMPANY'S ARGUMENTS:
Code 70 Training/Re-timing of certain jobs/ Set-up times
4. 1. The loss of productivity over the four-week 'training' period together with the cost of maintaining the average bonus is damaging the business. The Company believe it is reasonable to request to have an independent industrial engineer consider the appropriate training times in the various tasks.
Recording of Downtime and Scrap
2.The recording of downtime and scrap gives clear information to Management, which assists in identifying improved systems and reduction of cost through more efficient flows. This information requires little, if any, additional work and is already established practice in many areas of the business.
Absence Procedure
3. Absence is an enormous cost to the Company and the current procedure is extremely dated, making it a very blunt management instrument. The Company has drawn up a set of proposals which can be put to the Union.
RECOMMENDATION:
Having considered the submissions of the parties, the Court recommends as follows:-
Code 70 training/ Re-timing of certain jobs/ Set-up times
These issues should be the subject of a joint study by an industrial engineer nominated by the Company and an industrial engineer nominated by the Union. This should be completed and agreed by 31st January 2008.
Recording of Downtime and Scrap
In each case, the Union's members should agree to the Company's proposals with effect from 1st December 2007. As a quid pro quo, the offer of €200 per person made by the Company at Conciliation to cover retrospection on losses caused by the incorrect application of the terms of the Bonus Scheme should be increased to €400 and paid with effect from the same date to those affected.
Absence Procedure
The Company should, as agreed, immediately produce a definitive set of proposals on a revised absence procedure and the Union's members should engage, as also agreed, with the Company on the matter, with a view to agreement no later than 31st January 2008.
Signed on behalf of the Labour Court
Raymond McGee
7th November, 2007______________________
MG.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.