LCR15678

FULL RECOMMENDATION CD/97/195 RECOMMENDATIONNO.LCR15678 (CC96/1481) INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : SQUARE D COMPANY IRELAND LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Owens Employer Member: Mr Keogh Worker Member: Mr O'Neill

SUBJECT:
1. Compensation for loss of earnings.


BACKGROUND:

2. The Company which is based in Ballinasloe, Co. Galway, manufactures circuit breakers and employs 415 workers.

The dispute concerns a claim for inconvenience and loss of earnings on behalf of between 50 and 60 workers arising from their transfer from an evening shift to a day shift. As compensation for moving shift, the Company paid the workers £40 each.

The Union sought considerably greater compensation on the grounds that the workers would lose £24 per week each and would have to work a 39-hour day as opposed to the 35-hour night shift. The dispute was the subject of a conciliation conference under the auspices of the Labour Relations Commission. The Company argued that under their contracts of employment, workers are liable to work any work pattern as required by the Company. The Union's final position was that compensation should amount to 6 times the weekly loss. Agreement was not reached and the dispute was referred to the Labour Court, on the 28th of April, 1997 in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court carried out its investigation, in Galway, on the 9th of October, 1997.



UNION'S ARGUMENTS:

3. 1. There is no disagreement between the parties regarding the principle of compensation for loss of earnings. The only matter in dispute is the amount.

2. The Company offer of £40 equates to only 1.25 times the weekly loss. Far higher compensation is merited and can be afforded by the Company which is part of a world-wide corporation which is making vast profits. Accordingly, the offer of compensation should be increased considerably.

3. Apart from the financial losses incurred by the workers, there are other considerations less easy to quantify. The workers were specifically hired for evening shift work and have arranged their lives accordingly. The upheaval involved in this complete turnover of their lives merits substantial compensation.


COMPANY'S ARGUMENTS:

4. 1. When staff are appointed, and, equally, in the Company/Union agreement, the Company reserves the right to change the working time and move employees from one shift to another, as required.

2. As compensation for moving shift, the workers were paid £40 for having moved from a 35-hour week on a basic of £196.52 to a 39-hour week on a basic of £186.18 per week. There are no in-house precedents or agreements on compensation for loss of earnings arising from transfer from shift work.



RECOMMENDATION:

The Court, having considered both sides' written and oral submissions, recommends that the Company offer be increased to a total of £120 (£80 + £40 already paid) in full and final settlement of this claim.



Signed on behalf of the Labour Court



Evelyn Owens
23rd of October, 1997______________________
M.K./S.G.Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.