FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUBLIN KEG DISTRIBUTION (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - MANDATE DIVISION : Chairman: Mr Duffy Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. A) Restructuring Of Overtime B) Elimination Of Guaranteed Overtime In December C) Review Of Company Discretionary Bonus
BACKGROUND:
2. The case before the Court concerns three issues; the restructuring of overtime, the elimination of guaranteed overtime in December and a review of the Company's discretionary bonus. The Company's position is that changes are necessary in these areas to enable it to reduce its cost base of operating and to allow the Company to develop and expand. The Company is a single-contract operation. The Union contends that the changes requested by the Company include a withdrawal of workers present terms and conditions. The changes proposed would affect the earnings of the workers adversely.
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 30th October, 2008, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 20th January, 2009.
UNION'S ARGUMENTS:
3. 1 At present overtime commences at the end of an eight hour shift with the first hour given free to the Company. The Company now intends that overtime will only commence after the completion of 39 hours. At present there is a start and finish time for workers. Under the new proposals the Company will not give a finish time.
2 In November, 2007 the Company stated that the Christmas bonus was under review and would be linked to the outcome of negotiations between the parties on all issues. The workers were not informed that their bonus was under review. The bonus was used as a ploy by the Company that if the workers did not agree to the new conditions of employment then the bonus would be withdrawn.
3 There is an agreement for guaranteed overtime for an average of fifteen working days in December. This amounts to a considerable overtime payment for the workers as part of their wages. The Company is seeking to remove the guarantee.
COMPANY'S ARGUMENTS:
4. 1 The Company's new contract with its sole customer is considerably more challenging. There has been an increase in many aspects of the Company's business. The Company has been able to increase employment albeit on the new terms and conditions of employment necessary to ensure that it remains competitive and secures the future of its contract.
2 The Company has attempted to engage with the Union to renegotiate terms and conditions of employment of existing staff in an attempt to remove unnecessary costs from the Company in operating this single contract.
3 The Company offer of comensation of 12 months loss is reasonable. It recognises that employees will suffer loss with the restructuring of overtime and the elimination of guaranteed overtime in December. However, workers will continue to earn overtime on a weekly basis and during December.
RECOMMENDATION:
The Court recommends that the Company's proposals on restructuring be accepted on the following basis:-
1. A payment of €2,300 per employee be paid into the staff social fund in respect of the restructuring of overtime and the elimination of guaranteed overtime.
2. The Company should provide employees with at least 24 hours' notice of their anticipated finishing time.
3. The arrangement regarding restructured weekly working arrangements should be reviewed after six months.
4. There should be no change in the current arrangements regarding the Christmas bonus.
Signed on behalf of the Labour Court
Kevin Duffy
9th February, 2009______________________
DNChairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.