FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : MONDELEZ - AND - TECHNICAL, ENGINEERING AND ELECTRICAL UNION & UNITE DIVISION : Chairman: Mr Hayes Employer Member: Ms Doyle Worker Member: Ms Tanham |
1. Proposed Redundancies and other changes
BACKGROUND:
2. This dispute concerns the Company's need to reduce the cost of providing electrical and mechanical maintenance services within the Coolock Plant. Initially the Company intended to achieve the relevant cost reductions and efficiencies by outsourcing the entire maintenance function to a specialist contractor. Following representations from the Union the Company rethought its proposal and agreed to reverse the decision to outsource the maintenance function if agreement on restructuring proposals that yielded comparable cost savings and efficiencies could be achieved. To that end the Company developed proposals to merge the grades of Fitter and Electrician into a new multi skilled grade of Maintenance Technician, with an overall reduction in the number of craftsmen. These proposals required substantial changes to terms and conditions of employment of the workers concerned. The Company and Unions made some progress in local talks but failed to conclude a comprehensive agreement covering all issues in dispute. As the matter could not be resolved at local level it was, in accordance with the terms of the collective agreements in place between the parties referred to the WRC and was the subject of a number of Conciliation Conferences. As agreement was not reached in those discussions, the dispute was referred to the Labour Court.
UNION'S ARGUMENTS:
3. 1. The Unions recognise the cost constraints on the Company and are willing to embrace the changes necessary to meet its needs in this regard provided it continues to deliver the core mechanical maintenance services through direct labour.
2. The Unions are committed to working with the Company to eliminate demarcation between the grades of Fitter and Electrician. However the Unions argue that this is a medium term project that requires significantly more work on both sides before it can be given effect in practice.
3. The Unions require firm assurances regarding the number of Fitters that will be retained in the Company in order to protect the jobs and income of staff currently employed. To date management has refused to provide that level of detail. As a consequence an impasse has been reached that must be broken before a comprehensive agreement on all outstanding matters can be concluded.
COMPANY'S ARGUMENTS:
4. 1. The Company cannot afford to continue with the maintenance function in Coolock as it is inefficient and its cost is significantly out of line with competitor plants within the group. The Company initially sought to address the cost and efficiency issues by outsourcing the function to a specialist contractor that could undertake the work more efficiently and at a lower cost. However following union representations the Company is willing to maintain the service in house if sufficient savings in cost and improvements in efficiencies can be agreed.
2. The elimination of the demarcation between Fitters and Electricians within the plant is an urgent and absolute priority. To this end the Company wishes to merge the categories into a new multi-skilled Maintenance Technician position. The Company recognises that bringing this about will require an extensive retraining programme for each affected worker. The Company is fully committed to this and will commence the training process immediately and continue to fund it until it has been successfully completed.
3. The Company needs to reduce the number of maintenance staff it employs to align and bring its resources and needs into equilibrium. To this end it has invited applications for voluntary redundancy from this group of workers. As the Company is seeking to create a new grade of Maintenance Technician the Unions' request for a commitment on the number of fitters that will be retained after this process has been completed is misconceived. The Company cannot give such a commitment as to do so would undermine the basis on which it has agreed to continue with direct labour as the means of providing maintenance services into the future.
RECOMMENDATION:
The Court has given careful consideration to the comprehensive submissions of both parties to this dispute.
The Court notes the commitment of both sides to continue with a directly employed core of maintenance staff. The Court also notes that this can only be achieved if the parties agree to comprehensive changes to the manner in which work is organised in this department in the future. The Court notes that a failure to do so may have profound adverse consequences for the maintenance of secure employment in the Company. In this context and in an effort to facilitate the realisation of the necessary change programme through a negotiated process the Court recommends as follows: -
Structure and Roles
The Court recommends that with effect from one month from the date of this Recommendation the grades of Fitter and Electrician be merged into the new grade of Maintenance Technician. All staff employed in those grades on that date should automatically transfer into that grade on their current terms and conditions of employment.
The Court notes Management’s commitment to upskill all staff to operate fully within the new structure. A development plan for each member of staff should be prepared and appropriate training put in place to facilitate the acquisition of the appropriate skill set in each case. This process should be fully documented and appropriately certified.
Progress reports in the issue of upskilling should be the subject of half yearly reviews between the Company and the Unions representing that category of staff.
Redundancies
The Court notes that the Company’s requirement is for 44 Maintenance Technicians in the new structure. This number should be achieved through the application of the voluntary redundancy scheme in operation in the Company.
Any members of staff who does not wish to transfer to the new grade should be given the opportunity to apply to avail of that scheme. Management should consider each application and decide to accept or decline the request as appropriate.
Should, after this process has been exhausted, the remaining number of Maintenance Technicians exceed 44 the parties should meet with a view to agreeing a process by which that number will be achieved over an agreed period of time. In the event that the parties fail to reach agreement on either the proposed process or period of time the parties should refer the matter back to the Court for a definitive recommendation.
Allocation of Staff within Shifts and Plant Alignment
The Court recommends that the Unions accept Management’s proposals on these matters.
Shift Changes (Removal of Shift and Compensation)
The Court recommends that the Unions accept Management’s proposal to align the shift pattern of the Maintenance Technician with that of other categories of staff.
The Court notes that agreements exist that compensate staff for any loss of earnings that results from such changes to shift patterns and recommends that they be applied to staff affected by these changes also.
The Court sees no merit in the Union’s claim for compensation for loss of potential earnings for staff that are denied the opportunity to work unsocial hours as a result of these changes.
Tool Allowance
The Court recommends that the current tool allowance be capped for two years. The Court further recommends that the parties, without prejudice to either sides position, review this matter after two years in the circumstances then prevailing.
Technician Post Technician Requirements
The Court recommends that the Unions agree to train other categories of staff in the use of tools and equipment as set out by the Company.
Use of Contractors for Core Maintenance (and Contract staff arrangements)
The Court notes that the parties are agreed that the 2007 Agreement has operated satisfactorily to date. In that context the Court recommends that the parties continue to operate the terms of that agreement and review the matter again 12 months after the new grade has become operational.
Emergency Hours
The Court notes the Unions' concession in this regard. In that context the Court recommends that the Unions extend the scope of its offer to include cover for Absence, Holidays, Training or significant increase in demand. On that basis the parties should operate these new arrangements and review the situation 12 months after they become operational.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
____17th February 2016______________________
JKDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jason Kennedy, Court Secretary.