FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : COLOR COMMUNICATIONS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Foley Employer Member: Ms Doyle Worker Member: Ms O'Donnell |
1. 1. Redundancies 2. Compensation for loss of earnings 3. Compensation for a shutdown day.
BACKGROUND:
2. This dispute concerns claims involving (1) redundancies, (2) compensation for loss of earning and (3) compensation for a shutdown day. Two of these claims arise from the changing of shifts from evening to day. This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 10th January, 2017, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 23rd February, 2017.
UNION'S ARGUMENTS:
3. 1. No consultation took place with the Union before changing the shift hours of its members.
2. Four of the workers involved should have the option of availing of redundancy/severence package.
3. There was insufficient notice given to the night workers for an enforced shutdown day and the members want to be compensated.
COMPANY'S ARGUMENTS:
4. 1 The cost of shift premium is 16.66% and machines were idle on days.
2. The company says that this restructuring is about survival and they are suffering financially. They cannot afford to entertain any voluntary redundancy packages, they have no need to make anyone or any job redundant. There is no voluntary severance scheme in place.
3. The shutdown day was unplanned and unexpected.
RECOMMENDATION:
The Court has given careful consideration to the written and oral submissions of the parties.
The Court notes the Employer’s submission as regards the financial position of the company and notes the Trade Union’s reservations in relation to this matter.
The Court has been asked to consider issues related to a number of staff who have moved from an evening shift to a day shift with consequent loss of a shift premium of 16.6% and the impact of the change in working hours on their life arrangements. The Court has also been asked to consider the effect on the then evening shift of a shutdown of one day’s duration which occurred in November 2016.
Compensation for loss of Shift premium
The Court takes particular cognisance of the contention that staff who have been employed on a permanent evening shift face particular challenges when moved to a day shift. The Court also takes note of the Employer’s contention that the re-structuring of its shift operation is driven by the market and financial challenges faced by the company.
The Court recommends that the Employer should
- oWhenever evening shift working arises, offer such work to former permanent evening shift workers in the first instance subject only to matching the skillset of the worker with the work being carried out on evening shift.
oMake a payment in compensation for loss of shift premium to workers moving from evening to day shift on the basis of payment of the full shift premium for four months and 50% of the premium for a further four months.
Claim for Severance
The Union submitted that four workers have encountered particular challenges as a result of the shift restructuring and submitted that an option of a severance payment for these four workers should be made available by the Employer. The Employer submitted that no redundancy exists in the employment and that any worker departing the employment would be replaced through recruitment.
The Court recommends that where any of the four employees can show that in their particular circumstances there are compelling reasons as to why they are unable to accept day working a severance package, to be agreed between the parties, should be made available. In the event of a failure to agree the severance package or its applicability to any of the four workers involved the parties may refer the matter back to the Court for definitive recommendation.
Shutdown
The final matter before the Court related to the shutdown of the plant on Thursday 3rdNovember 2016 for reasons outside the employer’s control. The Union, for reasons specifically related to the shortness of the period of notice given to evening shift workers, sought a compensation arrangement for those workers. The Trade Union confirmed that there was not and would not be a similar claim in respect of day workers.
The Court recommends that the Employer should, as a gesture of goodwill reflective of the short notice given to evening shift workers of the shutdown, make available an additional .5 days annual leave to be taken in the 2017 leave year.
The Court so recommends.
Signed on behalf of the Labour Court
Kevin Foley
9 March, 2017______________________
CCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ceola Cronin, Court Secretary.