Labour Court Database __________________________________________________________________________________ File Number: CD95137 Case Number: LCR14790 Section / Act: S26(1) Parties: L AND N SUPERMARKETS LIMITED (THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Re-hearing arising from LCR14546.
Recommendation:
The Court has considered the submission made by the parties and
notes the outcome of negotiations which took place subsequent to
LCR14546.
The Court recommends as follows in respect of the Company's final
offer of 14th December, 1994:-
1. The Union agree to trading until 6.30pm. The Company
agree to withdraw proposal to open at 8.30am.
2. The Union agree to implement.
3. The Court notes the Union has agreed to this proposal.
4. The Court notes the Union's agreement to the principle
of Sunday trading. The rates, conditions and actual
days and times of this should be the subject of further
negotiations.
5. The Court supports the Union's position.
6. On acceptance of the above the Company pay the 3% under
Clause 3 of P.E.S.P. as follows:-
1% from 1st September, 1994.
1% from the date the late opening comes into operation.
and the final 1% from 1st September, 1995.
Division: Ms Owens Mr McHenry Mr Rorke
Text of Document__________________________________________________________________
CD95137 RECOMMENDATION NO. LCR14790
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
L AND N SUPERMARKETS LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Re-hearing arising from LCR14546.
BACKGROUND:
2. L and N is a wholly Irish owned multiple supermarket chain
with 19 outlets in various Irish towns throughout the
Country. It employs approximately 600 workers.
The dispute before the Court concerns the Union's claim for a
pay increase of 3% under the terms of Clause 3 of the
Programme for Economic and Social Progress (P.E.S.P.) on
behalf of approximately 30 workers employed in the Company's
store in Tipperary town.
In August, 1994, the Labour Court issued LCR14546 in relation
to the above claim. The Court's recommendation is as
follows:-
"The Court has considered the submissions from the
parties and the negotiations which took place at local
and Labour Relations Commission level. The Court is of
the view that the claim is legitimate under Clause 3 and
in particular notes that the Union has indicated that
it is prepared to consider any proposals the Company
might make in relation to trade off, phasing, etc.. The
Court is satisfied that resolution of the claim lies in
these areas and accordingly refers the issue back for
further local negotiations.
If final agreement is not reached by 30th September,
1994, the parties may refer back directly to the Court
for recommendation."
A number of meetings took place at local level following
which the Company in December, 1994 put forward the following
proposals:-
"1. The Company would have the option of trading daily
from 8.30am - 6.30pm. The extra hour would be
effectively manned without extra overtime and with
existing staff where possible.
2. In order to facilitate the effective running of the
store there would be flexibility and
interchangeability of staff in the fresh food
department. (i.e. butchery and provisions).
3. It would be agreed to introduce a new introductory
rate equivalent to 85% of Point 1 to facilitate
training and employing temporary staff. Staff would
remain at this rate for four months after which they
would progress to Point 1. Account of previous
service at 85% rate would be taken only when an
employee who left the Company, returns within one
year of departure.
4. The Company would have the option to trade on
Sundays. Staff would be adequately notified of the
Company's intention to exercise this option. The
rates and specific conditions to be applied would be
negotiated and agreed at that time. Such discussions
would of course take into account contemporary
practices in the trade.
5. The Company would have an option of trading licensing
hours in the off-licence for which payment would be
made at flat time. The Company would give adequate
notice of its intention to open such hours allowing
the Union to make suggestions in this regard. The
Union however would not have a right to veto.
In respect of these provisions the Company would pay
Clause 3 of the P.E.S.P. as follows:-
1% from Phase 1 of the P.C.W. (which would be
extended by one
month).
1% from Phase 2 of the P.C.W.
1% from the second six months of Phase 3 of the
P.C.W.".
The Union rejected the proposals and the matter was referred
back to the Labour Court on 17th February, 1995. A Labour
Court hearing took place in Clonmel on 10th May, 1995.
UNION'S ARGUMENTS:
3. 1. The Company has resisted the considerable efforts of the
Union to reach agreement at local level.
2. The workers concerned have co-operated fully with
management in a job reduction programme which resulted
in substantial savings to the Company.
3. The workers agree in principle to the Company's proposal
to trade on certain nominated Sundays.
4. The Company has conceded the 3% to workers in stores in
other towns and other supermarket stores operating in
similar locations to Tipperary have conceded the 3%
increase under Clause 3 of P.E.S.P.
5. The Company's concern regarding a decline in the
business following the opening in the town of a
Supervalue store is not justified. Currently the L and
N store is enjoying great popularity in the shopping
environs of Tipperary town. The workers have made a
significant contribution to the success of the store
with their on-going co-operation and flexibility. They
have fulfilled their obligations under Clause 3 and in
the circumstances the payment of the 3% is justified.
COMPANY'S ARGUMENTS:
4. 1. Tipperary is a rural market town with a population of
just over four and a half thousand. The town has three
supermarkets, L and N, Donohoes and Supervalue. L and N
is the only supermarket which is unionised and its rates
and conditions of employment are substantially higher
than those of its competitors and are substantially
higher than the rates laid down by the JLC.
2. Since the opening of Supervalue approximately five years
ago, L and N has experienced severe competition and
activity is considerably lower than that which prevailed
six years ago. Despite this, increases have been
applied to the pay scale and these have ranged from
16.5% on Point 1 of the scale to 13% on Point 7. These
increases have occurred during the lifetime of the
P.E.S.P., and the first phase of the P.C.W..
3. Wages are the single largest cost factor in the retail
sector. They account for over 50% of total costs.
Margins are continually under pressure due to intense
competition from competing multiples. Increases over
and above the norm will have the effect of further
undermining L and N's competitiveness and ability to
survive in a volatile and difficult marketplace.
4. L and N Tipperary was forced to implement 7 redundancies
after the opening of Supervalue. The policy of the
Company is to maintain employment. It believes that
concession of the claim in question without the
corresponding changes in productivity sought, could
jeopardise the employment of other staff members in the
store.
5. Concession of this claim would lead to claims from
workers in similar employment in other L and N stores.
6. SIPTU has already indicated that they are willing to
agree on proposals which would serve to offset the cost
of this claim. In the circumstances the Company's
proposals of December, 1994 are reasonable. If L and N
Tipperary is to remain viable adjustments in work
practices and flexibility of this nature are essential.
RECOMMENDATION:
The Court has considered the submission made by the parties and
notes the outcome of negotiations which took place subsequent to
LCR14546.
The Court recommends as follows in respect of the Company's final
offer of 14th December, 1994:-
1. The Union agree to trading until 6.30pm. The Company
agree to withdraw proposal to open at 8.30am.
2. The Union agree to implement.
3. The Court notes the Union has agreed to this proposal.
4. The Court notes the Union's agreement to the principle
of Sunday trading. The rates, conditions and actual
days and times of this should be the subject of further
negotiations.
5. The Court supports the Union's position.
6. On acceptance of the above the Company pay the 3% under
Clause 3 of P.E.S.P. as follows:-
1% from 1st September, 1994.
1% from the date the late opening comes into operation.
and the final 1% from 1st September, 1995.
~
Signed on behalf of the Labour Court
2nd June, 1995 Evelyn Owens
F.B./D.T. ____________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.