FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BULMERS LIMITED - AND - UNITE SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Mr O'Neill |
1. Survival Plan
BACKGROUND:
2. On the 19th February, 2009, the Company announced a major restructuring programme entailing 103 redundancies (there are presently 305 jobs on the Clonmel site). The Company's case is that cost-cutting measures are needed if it is to ensure continued employment on the site. It believes that the site is uncompetitive from a cost perspective and that failure to achieve cost reductions will result in removal of certain operations from Clonmel to other sites, most likely the U.K. The Company put forward a survival plan which included:redundancy terms, internal plant flexibility, alteration of shift and overtime rates, a 5% pay reduction and a pay freeze, adaption of the medical facilities on site and the sick pay scheme, and new terms and conditions for new employees.(A full list of the Company's proposals was supplied to the Court). The Company also announced plans to outsource Transport. The Union feels that the proposal were totally unacceptable. The Company had already shed 120 jobs in 2008 and it believes that many of the problems were caused by the Company's bad investment strategies.
The dispute was the subject of meetings at local level and at conciliation conferences at the Labour Relations Commissions (LRC). A proposal from the LRC went to ballot on the 4th April, 2009, and was rejected.
As the parties could not reach agreement at the LRC the dispute was referred to the Labour Court on the 6th April, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. Labour Court hearings took place on the 16th and 27th of April, 2009. The following is the Court's recommendation:
RECOMMENDATION:
This dispute came before the Court against the background of extensive negotiations between the parties at conciliation on the Company’s survival plan. Comprehensive proposals were agreed at conciliation which are set out in a document issued to the parties by the Director of Conciliation of the LRC. These proposals were, however, rejected by the Unions.
On the basis of the submissions made to it over the course of its investigation the Court is fully satisfied that significant cost reduction measures are necessary so as to restore the competitiveness of the Company and to maintain the viability of the employment which it supports. The Court is further satisfied that the proposals contained in the proposals agreed at conciliation represent the minimum necessary to achieve that objective.
Having engaged with the parties in both joint and side conference over two hearings the Court believes that while the general trust of these proposals must be maintained some modification in the terms proposed is warranted.
Accordingly, the Court recommends that the proposals which emanated from conciliation should be accepted in settlement of the current dispute, subject to the modifications recommended hereunder.
- Severance Terms
The Court notes that the terms proposed are acceptable to the Unions in respect to voluntary redundancies.
Pay Reduction
The Court notes that the proposal to reduce basic pay emanated from the union side in negotiations as a more acceptable alternative to reductions in shift allowances and overtime rates. Nevertheless the Unions now regard this aspect of the proposals as unacceptable.
Having regard to its origin the Court recommends that this proposal be modified so that basic pay be reduced by 2.5% rather than 5% as proposed. However shift pay for two-cycle shifts should be reduced from 22% to 20% and the rate for three-cycle shift should be reduced from 26% to 24%. It is further recommended that the pay freeze be extended to 1st June 2010.Shared Incentive Scheme
The Court recommends that the proposed payment of €1,000, based on business unit profit target for Supply, be guaranteed for the first year of the scheme and that it operate thereafter in the manner proposed in the LRC proposals.
On Site Medical and Prescription Scheme
The Court recommends that the LRC proposal be modified so as to provide that the Company pay for up to six visits to the GP per year. All other aspects of the LRC proposal under this heading should stand.
Seasonal Shutdown, Layoffs and Work Area Transfers.
The Court recommends that in the event of lay-off the current arrangements in respect to seniority should apply subject to the skill needs of the Company.
Income Continuance Scheme
It is noted that proposals have been made to the Unions on a revised Income Continuance Scheme. These proposal should be further developed between the parties.
- Save as modified by this Recommendation all other aspects of the LRC proposals should stand.
Signed on behalf of the Labour Court
Kevin Duffy
11th May, 2009______________________
CONChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.