LCR22251

1.Pay Claim

BACKGROUND:

2.This dispute concerns a pay claim by the Union on behalf of its members. The 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 on6 February 2020, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A remote hearing of the Labour Court took place on the3 September 2020.


UNION'S ARGUMENTS:

3.Changeover is a specialised role which requires tooling in order to complete the job that is carried out by the Craft Grades, who are on considerably higher rates of pay and enjoy enhanced benefits.
For the hourly paid employees to undertake this role would be considered major change and would require considerable training and upskilling to equip them with the skills and competencies in order to carry out same.

Therefore, payment is sought in recognition of these additional higher skilled duties in addition to the amounts in the Company's proposal.

Other parts of the Hollister Group offer a tiered system to their Associates. In other words, employees receive pay based on the qualifications they hold and the amount of duties that they undertake.

It is commonplace across a large number of employments that employees undertaking roles of an enhanced nature are paid according to that enhanced role.

EMPLOYER'S ARGUMENTS:

4.The Company is under ongoing cost pressures and has been tasked with reducing product costs each year between now and 2025.
These cost reductions have to absorb labour increases, material price changes and other external inflationary factors.

It is critical that the Ballina Facility continues to manage its cost base appropriately so as to position itself positively for the long term and labour costs are a key variable in this.

In addition to the competitiveness of our pay and benefits, Hollister is facing a number of other significant internal and external challenges including competitor costs, Brexit and funding the Defined Benefit pension scheme in Ireland.

The Company is very strongly of the view that the tasks associated with Operators completing basic changeovers not involving tooling is very much part of normal ongoing change. As the level of technology and automation has significantly increased in the facility during the last decade, on certain machines and processes, changeovers have become a ‘plug and play’ task with no requirement for tools or highly qualified Technicians to complete them.

It will significantly impact the efficiency, effectiveness and long term investment plans for the site if it does not continue to evolve and to adapt in line with the level of automation and technology that is being introduced to our Facility.


RECOMMENDATION:

With regard to the outstanding issue between the parties regarding the change-over, the Court notes the understandable concern of the workers that they might be asked to take on additional changes that, in their view, are of a significant nature that involve tooling. The Court notes the assurances of the Employer that there is no intention to ask the workers concerned to engage in tooling. The Court believes that the best means of providing the workers with the re-assurance that they require is for the new arrangements to be trialled for a six month period from the date of this Recommendation. Any issues that arise between the parties that cannot be resolved locally can, if necessary, be referred to the Workplace Relations Commission for assistance at that point.

On this basis, the Court recommends that the Union accept the company proposal of 9 December 2019.

	Signed on behalf of the Labour Court
	Tom Geraghty
NJ	______________________
3 SEPTEMBER 2020	Deputy Chairman