FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GALCO STEEL (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. Compensation for loss of Shift Premium (17.5%).
BACKGROUND:
2. The Company is a steel galvanising and fabrication operation with a number of plants throughout Ireland. The dispute concerns the Union's claim for compensation for 10 workers arising from the agreed removal of a rotating shift pattern (17.5%) and the introduction of a set of permanent day and evening shifts. Workers in the Company were offered a choice of the two new shifts. The Union is seeking twice the annual loss which the Company claims would cost €80,000, and is an amount it cannot pay.
The dispute was referred to the Labour Relations Commission (LRC) and a conciliation conference took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 3rd October, 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 12th January, 2012.
UNION'S ARGUMENTS:
3. 1. The workers have cooperated with a number of restructuring initiatives by the Company which involved redundancies and a loss of bonus payments and significant amounts of overtime. This has effectively led to a loss of 10-15% of pay due to these changes. The 10 workers involved could not avail of the permanent evening shift for a variety of reasons, mainly domestic.
COMPANY'S ARGUMENTS:
4. 1. All 10 workers were offered the permanent evening shift which still pays the 17.5% bonus but none availed of the offer.
2. At the LRC the Union had lowered its claim to 1 year's annual loss but has now increased it to twice the annual loss. The Company was prepared to offer 9 months' annual loss despite being in a loss-making situation but it was never prepared to concede the Union's claim.
RECOMMENDATION:
The Court recommends that the Company agree to pay the workers involved an amount equivalent to the value of 1 year’s loss of shift premium in two phases as follows:
Phase 1, amounting to half the value of the annual loss incurred, to be paid on acceptance of this recommendation by the Trade Union; and
Phase 2, amounting to the balance due, to be paid immediately prior to each individual’s annual summer holidays.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
20th January, 2012______________________
CONDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.