FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IRISH CEMENT LIMITED - AND - UNITE THE UNION -AND- CONNECT TRADE UNION DIVISION : Chairman: Ms O'Donnell Employer Member: Mr Marie Worker Member: Ms Treacy |
1. Gain Sharing Claim.
BACKGROUND:
2. 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 11 October 2017 in accordance with Section 26(1) of the industrial Relations Act, 1990. A Labour Court hearing took place on 29 January 2018.
UNION’S ARGUMENTS:
3. 1. The solid recoverable fuel (SRF) is recycled domestic waste and as such requires special handling techniques and work practices beyond what is required in the use of traditional fuels.
2. The use of (SRF) should attract an appropriate reward that should be enduring in nature and relate only to the use of current (SRF).
3. An element of retrospective payment should feature arising from the delays entailed in bringing the disputes procedure on this matter to a close.
EMPLOYER'S ARGUMENTS:
4. 1. The use of alternative fuels by the cement industry is a long established, safe practice.
2. The use of alternative fuels offers no competitive advantage to Irish Cement, it simply brings Platin Works in line with the competition.
3. Wage increases have been agreed of 12% from 2017 to 2019 and the Company is not prepared to increase the labour bill further.
RECOMMENDATION:
The issue in dispute relates to a claim by the Unions for a share of the gains they believe the Employer are and have been making since the Employer started using Solid Recoverable Fuels(SRF) as an alternative to coal in an around 2011. In April 2013, the Unions lodged a claim for an ongoing additional payment for working at or on SRF. The claim was based on the fact that workers had taken on additional responsibilities, the unpleasant nature and odour of the materials involved and the fact that considerable financial benefits would flow to the company from using SRF. The Employers position is that there is no competitive advantage as all their competitors are using solid recoverable fuels. They drew the Courts attention to appendix 6 of their submission which contained a report of a review that was carried out by an agreed third party in January 2017. The report contained a number of conclusions including the following:
- “The undoubted savings in running costs accruing to the company from using SRF have been more than consumed by movements in price. The improvement in the company’s trading position arises from substantial growth in the volume of production.
It is not logical to cherry pick one input price from a range of costs incurred by the company
The reduced running costs have enabled the company to take advantage of the Group’s recent acquisitions and to greatly increase sales to those businesses. The increased volume has led to an increase in the value of the employee’s bonus
A sustainable future for Irish cement is dependent on the ability to export because of oversupply in the Irish market. Exports are more price sensitive and may also be influenced by exchange rate movements”
However, in light of the parties particular efforts to resolve this issue through negotiations both locally and at WRC level and in an effort to conclude the matter, the Court recommends that the proposal tabled at the WRC be amended as follows; a once off payment of €1,500 per person (which can be invested in Salary Forego, AVC’s or taken as cash) plus a €500 voucher to be paid in a tax efficient manner. Payment to be made as soon as is practicable following acceptance of this recommendation.
The Court so recommends.
Signed on behalf of the Labour Court
Louise O'Donnell
5 March 2018______________________
MNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Neville, Court Secretary.