FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CADBURY IRELAND LTD - AND - TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Grier Worker Member: Mr Nash |
1. Cashless Pay
BACKGROUND:
2. In May 2007 the Company and the Unions agreed a major cost reduction / investment plan to secure the future of the Coolock plant. The agreement included the full introduction of cashless pay by the end of 2008. This dispute arose from 19 electricians having already moved to cashless pay and the Union claims that they have been financially disadvantaged for doing so.
This 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 12th November, 2008, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 3rd December, 2008, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Company/Union plan clearly states that no one will be disadvantaged by the move to cashless pay.
2. The Union has clearly demonstrated that 19 workers are at a clear financial disadvantage.
3.Concession of this claim would not cost a great deal of money but would ensure equal treatment for all the Union's members.
COMPANY'S ARGUMENTS:
4. 1.The main reason for the introduction of cashless pay is to eliminate the security risk that the payment of wages in cash creates.
2.Any variation of the agreement will inevitably undermine the overall agreement.
3.The implementation of this cost reduction / investment agreement is crucial if the future of the Coolock plant is to be secured.
RECOMMENDATION:
It was accepted and agreed by both parties at the hearing that in accordance with the Change Agreement concluded in April 2007, the facility for cash payment will cease at the end of December 2008.
The issue remaining to be determined here is that of whether 19 members of the TEEU have, in relative terms, been disadvantaged financially.
The Court recommends that this outstanding issue be dealt with by a small committee having an equal number of union and management representatives together with an independent chairperson nominated by the Court. This Committee should decide whether the 19 members have been financially disadvantaged and what, if anything, should be the solution to the question. In the event of disagreement, the independent chairperson should take the decision, which process should be finished no later than the end of December 2008.
Signed on behalf of the Labour Court
Raymond McGee
10th December, 2008______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.