LCR21912

The Askeaton plant normally shuts down for two weeks in the summer time and for one week at Christmas. Workers, other than those that may be required to provide skeleton cover, normally avail themselves of annual leave during periods of shutdown. In April 2017, the Workers were initially notified in the usual way that the annual summer shutdown would take place that year for two weeks commencing from Friday 21 July. However, in early July 2017, Management were informed by the global business leadership at Group level that stock levels of product manufactured in Askeaton were too high having regard to a slowdown in demand from key markets and, as a consequence, it would be necessary to revise down the production schedule at the Askeaton facility.

Management at the Company reviewed planned production operations and determined that a period of five to seven weeks of non-production would be necessary in order to effect the reduction in supply levels required by the global business. The Company’s position is that it considered a range of options whereby this outcome could be achieved. However, given the proximity in time to the scheduled summer shutdown, Management determined that the most appropriate solution available from an operational perspective was to require the Workers to take an additional week’s annual leave from 7 to 14 August 2017.

Management informed the Unions and the Workers in writing about this development on 7 July 2017. A number of Company-Union meetings took place subsequently in which SIPTU, on behalf of its members, submitted that the Company’s proposal was in breach of the Company-Union agreement, established custom and practice and would leave a number of Workers with a negative annual leave balance. The Union counter-proposed that the Workers should be placed on formal lay-off instead. The Union subsequently progressed a formal grievance at a local level in relation to the matter which wasn’t upheld. The matter was then referred to the Conciliation Service of the Workplace Relations Commission but no agreement was reached there.

The Union, in its submission to the Court, reiterated its position that the Company’s decision to enforce an additional week’s mandatory annual leave on the workforce in August 2017 was a breach of the Company-Union agreement and was inconsistent with established custom and practice at the Askeaton plant. The Union is seeking “full reimbursement” of the annual leave deducted from its members in respect of the additional period of enforced annual leave.

Recommendation

Having carefully considered the Parties’ detailed written and oral submissions, the Court accepts that Management at the Askeaton facility were faced with a situation in which they were given very little time to implement a direction from the group leadership to significantly reduce production for 2017. The Company’s position is that it achieved a five-week reduction in production with the least possible impact on the workforce. The Company informed the Court that, as a gesture of goodwill, Workers received an additional six hours’ annual in December 2018 and a further additional sixteen hours’ annual leave in January 2019. However, at the hearing of the within matter the Company was not willing to concede the Union’s claim for “full reimbursement” of the annual leave deducted from its members in respect of the additional period of enforced annual leave.

Although it appears to the Court that the Company’s decision to enforce additional mandatory annual leave at short notice in July-August 2017 resulted in only a small number of Workers actually incurring a negative annual leave balance at the time, the Court accepts that the workforce was, in a general sense, discommoded by the decision. In recognition of this, the Court recommends that the Union accepts the Company’s prior offer i.e. the following:

(i) the Company should facilitate those Workers who wish to buy back, on a one-hour-for -one-hour basis, the annual leave they were compelled to take during the week of 7 to 14 August 2017, and this to be paid back through payroll over a ten-week period; and

(ii) the Company should grant a 20% top up of the annual leave deducted from each Worker in respect of the week of 7 to 14 August 2017, regardless of whether a Worker wished to buy back annual leave or not.

The Court so recommends.

Signed on behalf of the Labour Court



Alan Haugh
LS______________________
07 March 2019Deputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Louise Shally, Court Secretary.