Labour Court Database __________________________________________________________________________________ File Number: CD88293 Case Number: LCR11913 Section / Act: S67 Parties: IRISH INDUSTRIAL EXPLOSIVES - and - FEDERATED WORKERS' UNION OF IRELAND |
Regrading of five drivers to helpers.
Recommendation:
5. The Court is of the view that the earnings of the five
claimants should equate to the average earnings of the workers in
the factory, in any year. The Court accordingly recommends that
the parties negotiate a rate of pay for the claimants which would
achieve the above. Any rate agreed in such negotiations should
apply only to the claimants and be "red-circled". The Court also
recommends that the Company compensate the claimants on the basis
of the accepted formula of 1.27 years lost earnings. The Court
recommends the 1st July, 1988 as the operative date for the New
Rates.
Division: Ms Owens Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD88293 RECOMMENDATION NO. LCR11913
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: IRISH INDUSTRIAL EXPLOSIVES
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Regrading of five drivers to helpers.
BACKGROUND:
2. The Company introduced two driver operations in the late
nineteen seventies as a result of Government legislation,
concerning the carriage of explosives. Helpers were upgraded to
driver and paid the appropriate rate. When revised regulations
recently came into effect, the need for a second driver was
eliminated and the Company sought to regrade the men as helpers
which would result in a fifty per cent phased reduction in
earnings (details supplied to the Court). The Union has refused
to agree to the change except that the drivers rate for the
helpers job was retained on a red circle basis. The Company
insists that the change be made as part of an on-going
cost-cutting exercise which also involves redundancies. As no
agreement was reached at local level the dispute was referred to
the Conciliation Service of the Labour Court on 12th November,
1987. A Conciliation Conference took place on the 15th December
1987, 10th February, 1988 and 30th March, 1988 but no agreement
was reached. The matter was referred to the Labour Court for
investigation and recommendation on the 18th April, 1988. A
Labour Court hearing took place on the 3rd June, 1988.
UNION'S ARGUMENTS:
3. 1. The Union has rejected the Company's proposal because
members earning power is reduced by half from £309.20 to
£154.60 in basic pay. The Union has proposed the red-circling
of the surplus drivers until such time as they leave the
Company for whatever reason. This proposal is one which has
been used in industry over many years in order to resolve
industrial disputes but it has been totally rejected by the
Company.
3. 2. The minimum negotiated rate for a general operative is
£241.20. The Union would put it to the Court that these
employees have already contributed substantially to the
Company in the Company's effort to rationalise over the past
two years. The workers should now at least be allowed to
continue on the minimum rates they have enjoyed over the past
fourteen years this being the shortest service of employees on
transport.
3. One of the Company's reasons for rejecting red-circling is
the fact (they say) that it would take too long to get the
helper's rates in order. For the information of the Court it
is a fact that before the end of 1988 the Company propose to
make another 25 men redundant. The Union believes that this
will, before the end of 1988, take care of a number of those
red-circled, and hopes that due to the proposed economic
expansion outlined in the National Plan the men could be
required again as full-time drivers.
4. The Union does not accept the need to demote five men, and
does not accept that the rate for helpers, if they are
required, should be 50% of the drivers' rate. It must at
least be the minimum paid in the factory which is £241.20.
5. The Union respectfully suggests to the Court that the
proper way to resolve this dispute is to red-circle those to
be demoted and negotiate a proper rate for helpers when they
are required.
COMPANY'S ARGUMENTS:
4. 1. As a result of the easing of Government regulations,
falling sales and a significant change in the Company's
Northern Ireland trade, (which is now handled by CIE)
production in the Company decreased significantly from 7,000
tonnes to 4,000 tonnes. An analysis of journeys carried out
by management, showed that drivers/helper journey's amounted
to 74% of the workload. Transport costs were 50% higher than
they should be because of reduced loads and having to pay two
drivers on deliveries. Reduced volume in sales meant that
costs had to be reduced. The Company can do little about the
volume of sales and is dependent on the economy improving, but
in the meantime economics must be achieved in those areas
which can be varied i.e. manpower distribution and overtime.
2. Management has sought to bring about reorganisation on a
number of issues including transport as far back as June,
1986, but despite various discussions with the Union no
agreement was reached. The Company believes that the pattern,
it proposes for the transport section is the correct one and
that the period of two driver operation was imposed on it by
legislation. Logically without the imposition of legislation
a driver/helper arrangement would exist and persons now
employed as drivers would have been helpers.
4. 3. Transport costs are far too high and makes the retention
of a transport section very doubtful. The Board of Irish
Industrial Explosives are pressing management to examine all
costs. The proposal of management is to pay compensation at
the level of 1.27 years which is a formula acceptable to the
Union for workers outside the transport section. Even with
reduced basic pay, earnings for the helpers will be
considerable. The fifty per cent proposal of management would
still give reasonable earnings to helpers who in fact would be
doing less work than a general worker and in fact is a "boys"
job. The offer of phasing out the old rate would ease the
problem.
RECOMMENDATION:
5. The Court is of the view that the earnings of the five
claimants should equate to the average earnings of the workers in
the factory, in any year. The Court accordingly recommends that
the parties negotiate a rate of pay for the claimants which would
achieve the above. Any rate agreed in such negotiations should
apply only to the claimants and be "red-circled". The Court also
recommends that the Company compensate the claimants on the basis
of the accepted formula of 1.27 years lost earnings. The Court
recommends the 1st July, 1988 as the operative date for the New
Rates.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___________________
20th June, 1988.
T. O'D. / M. F. Deputy Chairman.