FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IRISH CEMENT - AND - GROUP OF UNIONS DIVISION : Chairman: Mr Hayes Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Restructuring
BACKGROUND:
2. This dispute concerns the Company's restructuring proposals, which include compulsory redundancies, increased use of contractors, reductions in bonus, reductions in annualised hours payments and change from shift to call-in for some craft grades. 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 5th July, 2010, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 6th August, 2010, the earliest date suitable to the parties.
COMPANY'S ARGUMENTS:
3. 1. The Company's sales, prices and profits have fallen significantly.
2. The Company has to reduce its labour costs in order to maintain competitiveness and ensure the Company's future.
3.The Company has no other option but to introduce these restructuring proposals.
UNIONS' ARGUMENTS:
4. 1.The Company made huge profits during the construction boom and continues to be profitable.
2.The Company, in conjunction with the Construction Industry Federation and other cement producers, is seeking to use the current economic environment as an excuse to drive down wages by reducing the terms and conditions of its Workers.
3.The Group of Unions is willing to enter into meaningful discussions with the Company within the context of existing local agreements.
RECOMMENDATION:
The Court has considered the submissions of both parties to this dispute.
It is clear that the company is facing severe market conditions that require significant changes to enable it to compete and survive. It is equally clear the Unions are prepared to engage seriously around these issues with the Company with a view to reaching agreement on a viable way forward that optimises employment levels and conditions of employment consistent with the current and medium term financial and trading environment.
In this context the Court recommends that the parties, with the assistance of an agreed facilitator, meet intensively over a six-week period with a view to concluding an agreement on all issues in dispute.
Outstanding issues may be referred back to the Court for final recommendation at the conclusion of those discussions.
In the interim no action should be taken by either side to escalate the situation pending the conclusion of this process.
Signed on behalf of the Labour Court
Brendan Hayes
9th August, 2010______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.