FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GLANBIA (INCH) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Grier Worker Member: Mr Nash |
1. 1. Calculation Of Overtime For Compensation 2. Special Payment
BACKGROUND:
2. The Company has been seeking agreement with the Union on a restructuring programme at its yogurt manufacturing plant at Inch, Co Wexford, which wouldinter aliasee the introduction of new machinery that is expected to eliminate overtime. The issue arising were the subject of LCR18194.
The Industrial Relations Officer (IRO) was subsequently contacted by both parties and asked for further assistance in implementing the Court's Recommendation. The IRO met the parties on 17 September 2008 but, as agreement was not reached, the dispute was referred to the Labour Court on the 30th September 2008, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 23rd October 2008, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Union claims that all compensation for the loss of overtime should be paid up-front, as it has traditionally been in the Company.
2. The Company should pay thiscompensation for the loss of overtime up-front to prove it has confidence in the manning levels it believes are now necessary.
3.As all Workers are now fully operating the SAP software this special payment should now be paid to everybody.
COMPANY'S ARGUMENTS:
4. 1. Overtime will be reduced significantly but will still be required to cover some absenteeism, peak demand, maintenance, stock taking etc.
2. As the requirement for such overtime cannot be properly determined in advance neither can the loss of overtime be quantified.
3.The special payment was put in place over seven years ago and the Union has no reasonable justification for now bringing this claim.
RECOMMENDATION:
The Court has considered the submissions of the parties and recommends as follows in respect of each of the Union's claims: -
Compensation for loss of overtime
The Court notes that the Company anticipate that while overtime will not be eliminated next year it will reduce significantly. It is also noted that the Company are willing to pay a substantial percentage of the compensatory formula in an initial lump sum. It is further noted that the compensation for loss of overtime will be calculated on the basis of 1.5 times the loss.
Having regards to all the circumstances of this case, the Court recommends that the Company pay 70% of the base figure (highest overtime of last 3 years) following acceptance of this Recommendation. This amount will not be subject to claw-back.
Any remaining compensation will be calculated as follows: -
1. In January 2010 the total overtime for 2009 should be established and a payment for any difference between the total and the 70% already paid will be made (loss x 1.5).
2. In January 2011 the total overtime for 2010 should be established and if the total overtime for 2011 is greater than that for 2010 then an additional compensation payment should be made to reflect the difference between these two years (loss x 1.5)
These payment are intended to apply to the 50 employees as recommended in Recommendation LCR 19307.
Special Payments
The payment that is currently payable in a lump sum annually to 13 employees should be extended to the other 37 employees - 50 in all as recommended in LCR 19307 on a phased basis as follows:
- 1/3 of the annual amount to be paid in October 2009.
- 2/3 to be paid during 2010.
- The full payment to be made in 2011 and each year thereafter
Signed on behalf of the Labour Court
Kevin Duffy
18th November, 2008______________________
JMcCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.