FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : KILKENNY LIMESTONE (REPRESENTED BY CONSTRUCTION INDUSTRY FEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Haugh Employer Member: Mr Marie Worker Member: Ms Treacy |
1. Overtime Payment, Weather Payment
BACKGROUND:
2. The Company comprises of a group of three quarries which process and supply Irish Blue Limestone. Kellymount Quarry Limited, Old Leighlin Quarry Limited and Holdensrath Quarry Limited are the three separate entities of the group with a workforce of 47, 60 and 14 workers respectively. The issue between the parties claim for overtime to be paid on the shift rate for 28 workers who work shift in Kellymount Quarry Limited and Old Leighlin Quarry Limited and a claim for payment for a period of three days during Storm Emma.
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 6thApril 2018 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 16thAugust 2018.
UNION’S ARGUMENTS:
3. 1. SIPTU is seeking the industry norm where shift payment is part of the calculation in establishing the overtime payment to workers.
2. SIPTU is seeking 3 days payment for all workers following the Red Alert Extreme Weather Warning
EMPLOYER'S ARGUMENTS:
4. 1. The Company states the change in payment for overtime would cause major operational difficulties and industrial unrest among the workers. Those who work the shift but not do overtime would not be paid the premium. The claim only applies to 30 workers across two quarries. There is no contractual or union agreement that overtime should be based on the shift rate.
2. The Company states the workers were placed on temporary lay-off due to a shortage in work due to severe weather conditions that froze running water resulting in a lack of work. There is no custom and practice in the company or the industry to pay workers for extreme weather. The workers were paid for the hours they worked.
RECOMMENDATION:
Background to the Dispute
There are three elements to the within claim submitted to the Court by the Union on behalf of its members employed across the Respondent’s three quarries (Old Leighlin Limited, Kellymount Limited and Holdenstrath Limited) Those claims are: (i) a pay claim of 2% for 2016; 2% for 2017; 3% for 2018 and 3% for 2019; (ii) a claim for the inclusion of premium payments in the calculation of overtime payments for 28 Workers who work shift in Kellymount and Old Leighlin; and (iii) what the Union characterises as ‘Bad Weather Days payment’ to cover three days on which member were placed on temporary lay-off due to inclement weather during the Winter of 2017-18.
(i) The Labour Court issued a comprehensive Recommendation (LCR21364) dated 12 December 2016 which was accepted by both Parties and which addressed pay rates, shift patterns and shift rates, and allowances of the Workers concerned. Nevertheless, there remained certain aspects of the Workers’ terms and conditions that had not been harmonised across the three quarries: service pay, pension, death in service and sick pay schemes. The Respondent formulated its Harmonisation Proposal with a view to addressing those discrepancies during the course of 2018. It has costed the implementation of that proposal at 2.5% of total payroll costs. The Company’s regards the harmonisation of Workers’ terms and conditions across its three sites as a priority and should take precedence over any general pay claim.
(ii) The Respondent submits that concession of this claim would put the majority of its Workers at a disadvantage as they would continue to receive overtime payments calculated on the basic rate whereas the 28 workers who would benefit from the measure would be in receipt of a higher rate of pay for doing the same work at the same time.
(iii) This claim relates to the extreme weather events, associated with Storm Emma, that occurred between 28 February and 2 March 2018. All the Respondent’s Workers were placed on temporary lay-off on Thursday 1 March and Friday 2 March 2018. Some Workers had attended for work on Wednesday 28 February but were sent home as the quarries were closed from 11.00 a.m. Those who turned up for work were paid in full for the day. Workers due to attend on the evening shift that day were placed on temporary lay-off that day. The Respondent submits that it is established custom and practice in the industry that temporary lay-off is unpaid.
Recommendation
The Court does not recommend concession of claims (ii) and (iii).
The Court is cognisant of the costs currently being incurred by the Respondent in implementing its Harmonisation Proposal. Therefore, the Court, does not recommend a general pay increase during 2018. The Court does, however, recommend that an increase of 3% be applied to the Workers’ basic pay with effect from 1 January 2019.
The Court so recommends.
Signed on behalf of the Labour Court
Alan Haugh
8 October 2018______________________
THDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Therese Hickey, Court Secretary.