FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CARGOTEC-MOFFETT ENGINEERING LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - UNITE DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. Company's proposal to reduce pay rate for welders being redeployed and consequent loss of earnings.
BACKGROUND:
2. This dispute arose from the Company's decision to cease welding and fabrication in its Dundalk plant and to outsource this work to a company in Donegal and to two companies in Poland, and to redeploy the Workers on a reduced rate of pay. 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 9th January, 2012, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 14th February, 2012.
UNION'S ARGUMENTS:
3 1 The Workers' basic pay is protected by the Payment of Wages Act, 1991.
2 The Workers are also protected by a red-circling provision in a Company / Union Agreement.
3 Redeployment to Donegal is not a viable long-term option for the Workers.
COMPANY'S ARGUMENTS:
4 1 The Company is willing to offer reasonable compensation tor the Workers who redeploy to Donegal.
2 The Company is also prepared to offer redundancy or alternative employment to Workers who do not wish to redeploy to Donegal.
3. The Company's proposals are a reasonable attempt to cut costs while maintaining employment.
RECOMMENDATION:
The matter before the Court was the subject of some dispute as the Union was of the view that the Company planned to reduce the rate of pay for Welders and thereby eliminate a “Welder’s rate” of pay. It sought the retention of the welder’s rate on a red-circled basis for those whom the Company required to redeploy to General Operative posts.
However, the Court is satisfied that the issue before the Court concerns the fate of 18 Welders affected by a Corporate Strategy decision made in Helsinki to eliminate the welding and fabrication processes from its plant in Dundalk and to out-source that work to a company in Donegal and to two companies in Poland.
The Company informed workers of the position on 5thOctober 2011 and presented an initial offer to the workers involved on 18thOctober 2011 and an improved offer on 26thOctober 2011. These offers included compensation for loss of earnings and this element was extended to four other workers who had retained the Welder’s rate of pay since their redeployment to the Stores area in 2009. A central element of the Company’s position is the desire to retain all 22 workers in employment and consequently it outlined redeployment options to those affected and offered to compensate them for the consequential losses sustained.
Having considered the position of both sides the Court recommends that the Company’s offer dated 26thOctober 2011 should be amended to include clear details on the various options available to the workers concerned and should include the following :-
- Details of the limited options available to transfer to the Donegal engineering plant under theEuropean Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003.
- Details of the voluntary redundancy options open to all 22 workers involved in this claim as outlined in the Company’s letter to the Union dated 16th February, 2012.
- Details of the redeployment option open to all 22 workers involved in this claim along with details of compensation for loss of earnings. The Court recommends that the compensation payment should be offered on the following basis:-
- payment of a lump sum of €1,750 on acceptance of this Recommendation or on redeployment (whichever is later) plus an additional lump sum of €1,750 twelve months following the date of the first payment.
The Court recommends that the amended Company proposals encompassing the above Court recommendations should be presented for ballot as a composite package.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
21st February, 2012______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.