FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TESCO IRELAND LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr O'Neill |
1. Rosters, relocation payment, and red-circled terms and conditions.
BACKGROUND:
2. On Wednesday 9th April 2008 Tesco announced their intention to close their Tallaght Distribution Centre and transfer its business to its Donabate Distribution Centre which opened 2 years ago. Employees were given the options of redundancy, transfer to Donabate or to the Company's retail outlets.
Following negotiations at conciliation a package, including voluntary severance and transfers, was agreed. The Company agreed to red-circle a number of terms and conditions including basic pay, sick pay, contracted hours, holidays, pension and overtime rate.
A number of issues concerning rosters and a relocation package was unresolved and both sides agreed to refer these to the Labour Court. The Union also wished to retain Tallaght breaks and shift patterns on a red-circled basis in Donabate but the Company would not agree to that.
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 29th August, 2008, in accordance with Section 26(1) of the Industrial Relations Act 1990. A Labour Court hearing took place on the 2nd October, 2008.
UNION'S ARGUMENTS:
3. 1. The Union maintains that their members have and will in the future suffer considerable financial loss due primarily to the length of the round trip from Tallaght to Donabate. The Union is seeking a large relocation payment in compensation.
2. The Union cited a letter from the Company of December 2006 stating that in the event of Tallaght closing the employees who transfer to Donabate would maintain the terms and conditions they were on at the time of the closure. The Union is now seeking to maintain the 5 over 6 shift arrangement as distinct from the 5 over 7 shift pattern in Donabate.
3. During their employment in Tallaght the Union's members worked regular rostered overtime. Since transferring to Donabate there has been little or no overtime. The Unionis seeking an appropriate formula to compensate those affected for their loss of earnings.
COMPANY'S ARGUMENTS:
4. 1.It is the Company's contention that it has fully abided by the letter of December 2006 concerning terms and conditions of employment. These have been defined by a number of legal determinations and the Company has also included the maintenance of overtime premia.
2.The Company maintains that all other work practices that operate in the Donabate site are the subject of an existing agreement with the Union.
3.In conceding the application of the Tallaght terms and conditions of employment the Company incurred a significant additional rate of pay for each employee concerned. The Company maintains that there is no justification in the circumstances for an additional concession of a relocation payment.
RECOMMENDATION:
The matter before the Court concerns the outstanding issues arising from the closure of the Company’s Tallaght Distribution Centre, which apply to those employees who opted to transfer to the Company’s Donabate Distribution Centre. The outstanding issues relate to (a) a claim for a relocation payment; (b) retention of terms and conditions of employment; specifically rostering arrangements; and (c) compensation for loss of overtime earnings.
Having considered the submissions of both sides the Court recommends as follows: -
(a) Claim for a relocation payment
The Court recommends that a relocation payment should be paid to those workers who opted to transfer their work location and who now report for work at the Donabate Distribution Centre. The Court recommends a payment of €2,500.00 to each worker, to be paid in two equal phases, the first on 1st December 2008 and the second on 1st April 2009.
(b) Retention of terms and conditions of employment, specifically rostering arrangements
In an attachment to a letter dated 26th May 2008 to the Union, the Company clarified the six terms and conditions which employees would retain on their transfer to the Donabate Distribution Centre. These related to hourly rates of pay; contracted hours; sick pay scheme; holidays; pension and overtime rate. The terms as clarified were balloted upon and accepted by the Union. The terms did not include the issue of rostering arrangements and it was agreed that this issue would be referred to the Court for adjudication.
The Court notes that the rostering arrangement operated in Donabate is a 5 over 7-day arrangement and in all the circumstances of this case recommends that the nine workers should comply with the Company’s need to have a unified arrangement in the Centre; therefore with effect from 1st November 2008, they should commence on the 5 over 7-day rostering arrangement.
(c) Compensation for loss of overtime earnings
Taking account of the pattern of overtime which six of the nine workers operated and which the Company already committed to for a period of one year, the Court recommends that these six workers should be compensated for the loss of overtime by the payment of 13 weeks' loss of overtime earnings.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
13th October, 2008______________________
MG.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.