LCR22155

FULL RECOMMENDATION

CD/19/337

RECOMMENDATIONNO.LCR22155

CCc-164297-19

SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990

PARTIES :

ROSDERRA IRISH MEATS
(REPRESENTED BY IRISH BUSINESS EMPLOYERS CONFEDERATION)

- AND -

300 GENERAL OPERATIVES
(REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION)

DIVISION :

Chairman: Mr Haugh
Employer Member: Mr Marie
Worker Member: Ms Treacy

SUBJECT:
1. Short-time working

BACKGROUND:

2. This dispute relates to the imposed short-term working at the Edenderry plant due to the reduction in the numbers of pigs nationally available for slaughter and processing.

The Union said that it wants a fairer distribution of the impact of the current shortage of pigs between the Roscrea and Edenderry plants by revisiting the 2:1 pig sharing arrangement provided for in the 2013 agreement. It is also seeking that the temporary variation of the overtime provisions in the agreement should apply indefinitely.

The Employer said that the Roscrea Plant continues to operate on a higher cost base than its sister plant in Edenderry and that while some improvements have been achieved since 2013, it has a lower efficiency than Edenderry.

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 16 October 2019 in accordance with Section 26(1) of the Industrial Relations Act, 1990.

A Labour Court hearing took place on 29 November 2019.

UNIONS ARGUMENTS:

3. 1. The claim for a fair and balanced sharing of the short-time between both plants is well founded.

2. Where the Company cannot fulfil or provide a worker with their basic 39 contracted hours, any overtime a worker has worked should be paid at the premium rate.

EMPLOYER'S ARGUMENTS:

1. The Company continues to operate in a market continuously challenged by external factors.2. While the two sites operate on a similar platform, there are critical site specific factors that determine day to day processing decisions.

RECOMMENDATION:

Background to the Dispute

The within dispute concerns imposed short-term working at the Rosderra Irish Meats (‘the Company’) plant in Roscrea due to the reduction in the numbers of pigs nationally available for slaughter and processing. The Workers concerned have lost a total of ten days of work to date in 2019. They were given the opportunity to either take a day’s annual leave or take an unpaid day on those days when no work was available for them.

A comprehensive collective agreement was concluded between the Company and SIPTU in 2013. That agreement makes provision, inter alia, for a ‘balanced sharing of pigs’ between the Company’s plants in Roscrea and Edenderry in the event of there being a shortfall in the supply of pigs for processing. The relevant paragraph in the agreement states:

“In relation to the handling of a shortage of pigs, if this proposal is accepted and in the light of increased efficiencies at the Roscrea plant, plans can be made around a balanced sharing of pigs between Edenderry and Roscrea. The company will work towards a 2:1 ratio sharing of reduced working between Roscrea and Edenderry should it occur. This means that if there are three days of reduced working then Roscrea plant will not operate on two of those three days. It should be noted that if the supply profile worsens in the future resulting in extended working, then the distribution of pigs will have to be reviewed.”

The agreement also makes detailed pay provisions for so-called ‘new entrants’. In respect of overtime payments, the agreement provides:

“Overtime will only be paid after an employee has completed their contracted 39 hours basic working week. It is a condition of employment that all employees shall be agreeable to work reasonable overtime when required by management. Reasonable is defined as 6 hours overtime per week. This may be worked on any evening during the week, up to a maximum of 3 hours in any one evening.”

In order to alleviate the impact of the short-time work on the Workers concerned, the Union and the Company agreed a temporary variation of the above overtime provision in the collective agreement whereby the Company has undertaken to pay the Workers the overtime rate for any hours worked after the normal daily finishing time notwithstanding that they would not have completed thirty-nine basic working hours in any week during which short-time working occurs. This variation was agreed locally between the Parties in the period following Conciliation at the Workplace Relations Commission and after the within dispute had been jointly referred to the Court. It was agreed that the variation would remain in effect until 31 December 2019.

Submissions

The Union accepts that the shortfall in pigs nationally is something beyond the Company’s control. It also accepts that the Company has abided by the terms of the 2013 agreement. The Union, however, submits that there has been a significant improvement in productivity at the Company’s Roscrea plant since the collective agreement was concluded in 2013. It also points to the reduction in costs achieved at the plant due to at least one third of the workforce there now being employed on the new pay rates provided for in the agreement. In the light of the foregoing, and in order to ensure a fairer distribution of the impact of the current shortage of pigs, the Union is seeking to revisit the 2:1 pig sharing arrangement provided for in the 2013 agreement. It is also seeking that the temporary variation of the overtime provisions in the agreement should apply indefinitely, in circumstances where the company becomes unable to provide the Workers with a full thirty-nine hour basic week but nevertheless requires them to work additional hours during a shorter week.

In its submission, the Company emphasises the importance of retaining the flexibility to operate its business on a plant-by-plant basis. It told the Court that it will continue to work towards the 2:1 pig distribution ratio as provided in the 2013 agreement.

Discussion and Recommendation

The Court cannot accede to the Union’s request that it recommend a variation to two discreet provisions of the 2013 collective agreement at issue in the within dispute. However, having regard to the Parties’ excellent working relationship at a local level, as evidenced by their ability to agree an interim variation of the overtime arrangements in order to off-set the adverse effect of the imposed short-time working on the Workers concerned, the Court recommends as follows:

•The current interim overtime arrangements being operated at the Roscrea plant should continue up until 31 March 2020;
•The Parties should use their best endeavours in the period to 31 March 2020 to agree a long-term arrangement locally to address the impact of any future pig shortages.

The Parties’ may return to the Court to seek its assistance after the aforementioned date if no solution can be agreed locally.

The Court so recommends.

Signed on behalf of the Labour Court

Alan Haugh
CR______________________
05 December, 2019Deputy Chairman

NOTE

Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.