FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : STRIPES SUPPORT SERVICES LIMITED T/A KAMMAC SUPPORT SERVICES - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. Annualised Hours
BACKGROUND:
2. The Company took over a contract for the provision of a logistical service from another company. A total of 59 employees were transferred to the Company under existing contracts of employment. The Company entered into consultation with the employees and the Union. The Union drew particular attention to the Annual Time Contract (ATC), which is part of its members terms and conditions. Due to the fall in the volume of work, the Company sought and succeeded in getting 9 voluntary redundancies. Following this, the Company met again with the Union regarding shift patterns and hours being worked. The Company wished to move away from the ATC system for competitive reasons. It is the Unions claim that ATC's have been in operation at the client company site since the mid 1990's and that the rosters were well understood with built in flexibility for the staff and for the business.
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 could not be reached, the dispute was referred to the Labour Court on the 2nd April, 2007 in accordance with Section 26(1) of the Industrial Relations act 1990. A Labour Court hearing took place on the 18th September, 2007.
UNION'S ARGUMENTS:
3. 1 It is the Unions claim that the ATC is a site arrangement, which operates within the client company, and with their knowledge. The Union's members have operated this system for over ten years and believe that custom and practice has been established regarding the ATC hours.
2 The worker's are covered under the terms of the transfer of undertakings from their previous company regarding the ATC. The ATC was retained in previous change processes, where other major changes were conceded by the members.
3 The ATC hours should be re-introduced for the members and the Company should take up the issue of costs with the client, who were well aware of the operation and the working arrangements which have been in place since an agreement in 2000 which does not expire until December 2007.
COMPANY'S ARGUMENTS:
4. 1 The implementation of a system under which the Company pays for work done is vital to ensure the Company's ability to deliver the services to its client on the terms agreed and to ensure its client can remain competitive in the marketplace.
2 The ATC arrangement is a system which must be changed to reflect a way of working under which the workforce is paid for work done and not time spent off, aside from normal annual leave. The Company is willing to buyout such rights that exist at this time and consider a two year buyout of an "opportunity" to take time off on call is a fair offer. The Union's proposal of a five year buyout would be financially crippling.
3 The Company must deliver change. Failure to do so could lead to future reductions in staff if the employees currently engaged cannot be utilised to their full potential.
RECOMMENDATION:
While there was some dispute over the issue, which was the subject matter of the claim before the Court, both parties agreed that the issue concerns the Company’s proposal to terminate Annualised Hours working as operated previously by IRC Workforce at the Diageo plant. Stripes Support Services Limited t/a Kammac Support Services were successful in their tender application for the provision of logistics services at the plant in July 2006 and consequently the workers were transferred under the Transfer of Undertaking Regulations.
For competitive reasons the Company submitted to the Court that it was necessary to cease Annualised Hours working and sought to enter into a change programme with the Union.
The Union had a number of concerns with the proposals, in particular it had concerns over the loss of Reserved Hours as contained in the Annual Time Contract and it sought to retain this working arrangement, which had been in place for 13 years.
The Union put forward a set of proposals dated 15th November 2006 setting out its terms and conditions for resolution of the matter. However, these terms were not acceptable to management and were withdrawn by the Union. In December 2006 the parties agreed to an interim arrangement to cease Annualised Hours working and the Company paid four weeks pay as an ex-gratia payment pending an eventual settlement on the abolition of the Annualised Hours working arrangement.
Having considered the written and oral submissions of both parties the Court recommends that the Union should agree to abolish Annualised Hours working in return for a further ex-gratia payment of 8 weeks pay and the 15th November 2006 proposals should be amended accordingly to form the basis of settlement of this dispute. Furthermore, the Court recommends that the Company should include details of the following issues of concern to the workers, in the final settlement document:
-Notification of rosters
-Clarification of whether “Task To Finish” applies and how it may apply
-Provision of Cover for Absences
-Conditions regarding the taking of Annualised Leave
-Applicability of overtime premia.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
22nd October, 2007______________________
DNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.