LCR15635

FULL RECOMMENDATION CD/97/437 RECOMMENDATIONNO.LCR15635 (CC97/1057) INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : KIELY'S BAKERY (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGrath Employer Member: Mr Keogh Worker Member: Mr O'Neill

SUBJECT:
1. Dispute concerning (1) "the non-implementation of a 39 hour week, (2) payments in lieu of the first phase of the Programme for Economic and Social Progress (PESP), (3) compensation for 2 maintenance workers and (4) severance terms.


BACKGROUND:

2. The Company which is part of the Irish Pride Group announced its intention to close on 9 august, 1997 due to continuing losses. Seventy two workers are being made redundant with effect from 6 September, 1997. At a subsequent meeting to discuss severance terms, the Union raised a number of outstanding issues which it claimed had to be settled before severance terms were discussed. On the 12th August, 1997, the Company provided a written response rejecting the Union's claims in relation to the 39 hour week, 4% under PESP, and compensation for 2 maintenance workers.

The Company offered severance terms amounting to 3 times statutory plus £600. the Union rejected the Company's offer on redundancy and reiterated its claim for the other items. The dispute was referred to the Labour Relations Commission and a conciliation conference was held on 21st August, 1997. Agreement was not possible and the dispute was referred to the Labour Court by the Labour Relations Commission on the 26th august, 1997. A Court hearing was held on the 2nd September, 1997. A letter recommendation was issued on the 8th September, 1997.




UNION'S ARGUMENTS:


3. 1. The Programme for National Recovery (PNR) set out quite specifically to improve the working conditions of workers by reducing the working week from 40 to 39. The reduction was also meant to create employment where possible. The Company has
done neither. It did not implement the reduction and implemented substantial redundancies since 1989.

2. The Company refused to implement the 4% increase under PESP. While the Company pleaded inability to pay, management stressed that it was "a debt owed". The Union did not accept forfeiting the increase due. Workers were of the opinion that they were forgoing the increase temporarily to sustain the long term viability of the Company and had the right to pursue the claim at a later date. Management took advantage of the workers' commitment to the Company.

3. The two fitters worked a 40 hour week up to the take-over of the Company in 1989. Management requested the two workers to work their day off to ensure the smooth running of the plant and that after the transition they would never revert to their normal working week. Despite repeated requests the workers' original conditions were not restored.

4. The Company's offer on severance terms is derisory. The Company is part of a multi-million pound group and very profitable. The workers have given long and diligent service to the Company. If the Company had any respect for the workers it would have put forward, as an initial offer, terms implemented in November, 1990.


COMPANY'S ARGUMENTS:


4. 1. The 39 hour week was not introduced in any of the bakeries in the Group or in the depot, given the trading circumstances of the Group and this Company.

2. The Company pleaded inability to pay the 4% PESP increase at the time. It did not return to profitability. Despite this it paid the balance of PESP, PCW and phase one of Partnership 2000. The Union did not raise the issue until recently.

3. Maintenance workers were paid substantially over the going rate to provide maintenance for the plant as the operation required. Such cover has been provided for many years without query from the Union.

4. The Company's offer is based on an established formula which operates in other bakeries within the Group which have closed and internally in Kiely's Bakery. When in 1994, 24 workers were made redundant and in 1995 when 9 workers were made redundant.





RECOMMENDATION:

The Court has fully considered all of the issues raised by the parties in their oral and written submission and makes the following recommendations:

1.39 Hour Week

The Court does not recommend concession of the claim.

2.Outstanding Monies due (1st Phase PESP)

The Court recommends that the 4% be applied to gross earnings for the purpose of calculating the Terms of Redundancy.

3.Compensation for six day working

The Court does not recommend concession of the claim.

4.Severance Terms

The Court recommends that the severance terms as applicable in 1990 (letter of 19th November, 1990) be applied in this case.



Signed on behalf of the Labour Court



Tom McGrath
15th September, 1997______________________
T.O'D./D.T.Deputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.