Labour Court Database __________________________________________________________________________________ File Number: CD95466 Case Number: LCR14916 Section / Act: S26(1) Parties: REHABILITATION INSTITUTE - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the interpretation of a clause of an agreement.
Recommendation:
5. The Court understands how the parties to this dispute arrived
at different interpretations of an agreement reached after lengthy
negotiations.
In all the circumstances of the case the Court considers that
reasonable settlement of the dispute is that the 8 claimants agree
to work a 39-hour week and the Institute pay them #250 each as
compensation.
The Court so recommends.
Division: Ms Owens Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD95466 RECOMMENDATION NO. LCR14916
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: REHABILITATION INSTITUTE
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the interpretation of a clause of an
agreement.
BACKGROUND:
2. The Company is a private voluntary organisation which
provides training for people with special needs. Gandon
Enterprises is the commercial division within the Rehab Group
and is the organisation's response to the Government's Pilot
Programme to provide employment for people with disabilities.
It comprises 6 businesses located in Dublin, Cork, Limerick,
Galway, Navan and Castlebar. These businesses plan to employ
50% of their workforce from the disabled community with the
other 50% to be recruited from the general labour market.
The company where the dispute occurs is "Precision Workwear",
a Navan-based business which manufactures specialist
protective garments for the workplace.
Following the establishment of the Company, negotiations took
place on a new pay and conditions agreement, under the
auspices of the Labour Relations Commission. A set of
proposals was drafted which was acceptable to both sides.
Clause 2 of the proposals, which is the subject of this
dispute reads as follows:-
"2. (a) Gandon shall pay overtime to those employees
on permanent 37.50 hour contracts who worked
overtime to 11 April, 1995.
(b) These employees shall agree to work a
39-hour week - such hours to be paid at flat
rate after 11 April, 1995.
(c) A once-off lump sum of #300 gross shall be
paid to these employees in respect of all
claims arising from (b) above."
The Clause in question is 2(c) which, the Company argues,
refers only to permanent employees, thereby excluding 8
Navan-based workers on temporary contracts. The Union claims
that as Clause 2 deals with the compulsory move to a 39-hour
week, the #300 should be paid to the workers (8) employed
prior to the changeover.
The dispute was the subject of investigation by the Labour
Relations Commission following which agreement was not
received. The dispute was referred to the Labour Court, on
the 14th of August, 1995, in accordance with Section 26(1) of
the Industrial Relations Act, 1990. The Court carried out
its investigation on the 20th of September, 1995.
UNION'S ARGUMENTS:
3. 1. The reference to '39 hours' in Clause 9 of the L.R.C.
document is merely to clarify what #148.80 is for. It
does not state or imply that someone working less than
39 hours must work a 39-hour week.
2. The clause that deals with the compulsory move to 39
hours is Clause 2. Compensation for this move is set
out in Clause 2(c).
3. If the Company is claiming the right to instruct
workers to move to a 39-hour week, then the Company
must also accept the obligation to pay the compensation
negotiated, i.e., #300.
COMPANY'S ARGUMENTS:
4. 1. The 8 staff are not entitled to the #300 payment as
they clearly do not meet the criteria outlined in
paragraph 2 of the L.R.C. agreement in that the 8 staff
are employed on temporary contracts. In negotiating
that agreement the status of those staff was clearly
defined and recognised as "staff temporarily recruited
for Gandon Enterprises pending its establishment". The
wording of Clause 2 was carefully drafted precisely to
exclude those staff who are not employed on permanent
contracts (e.g. the 8 Navan staff) and the Union freely
accepted this during the course of the negotiations.
2. If the Union's claim should succeed, the 8 workers
would effectively be re-classified as permanent. This
would have a number of knock-on consequences for Gandon
Enterprises. All staff temporarily recruited to Gandon
Enterprises pending its establishment will effectively
be classed as permanent staff and will be entitled to
Rehab conditions of employment, e.g., 6 months' sick
leave, non-contributory pension to date of
commencement, salary protection plan, etc. It is
expected that up to 15 businesses may transfer to
Gandon Enterprises over the coming years and any staff
recruited in a temporary capacity prior to transfer
could similarly be entitled to the Rehab conditions
outlined above.
RECOMMENDATION:
5. The Court understands how the parties to this dispute arrived
at different interpretations of an agreement reached after lengthy
negotiations.
In all the circumstances of the case the Court considers that
reasonable settlement of the dispute is that the 8 claimants agree
to work a 39-hour week and the Institute pay them #250 each as
compensation.
The Court so recommends.
~
Signed on behalf of the Labour Court
Evelyn Owens
3rd October 1995 --------------
M.K./U.S. Chairman
NOTE:
ENQUIRIES CONCERNING THIS RECOMMENDATION SHOULD BE ADDRESSED TO
MR MICHAEL KEEGAN, COURT SECRETARY.