INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
KINGSPAN BUILDING PRODUCTS
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Ms Owens
Employer Member: Mr Pierce
Worker Member: Mr Rorke
1. Rate for 12 hour 4 shift working.
2. The Company employs approximately 200 people at its plant in Kingscourt, Co. Cavan. It is a subsidiary of the Kingspan Group plc. It manufactures an insulated composite panel for use in the roofs and walls of industrial and commercial buildings, as well as a wide range of roof ancillaries such as gutters, lights, flashings etc.
The Company currently operates on 3 x 8 hour shift, Monday to Friday with one/two shifts of weekend overtime on average per week. Rates of pay for shift under this system are as follows:-
Day & Evenings - Basic Rate +11% Flexi +20% shift premium
Nights - Basic Rate +11% Flexi +25% shift premium
Because of a substantial increase in demand for its products the Company requires a fourth shift to operate to meet this demand. The Union and the workers are agreeable in principle to a 4 shift operation but cannot agree a rate for the additional shift.
The Union is claiming a shift premium of 50% in addition to an allowance of 11% which is paid to shifts for flexible breaks. It also wants 3 x 25 minute paid breaks and additional annual leave. In addition, it wants proper canteen facilities with full meals available for its members.
The Company has offered 33 1/3% shift premium plus 11% flexibreak allowance Monday to Friday with 40% shift premium for Sunday, which is equivalent to 39% on top of the 11% flexibreak allowance. It also proposed 2 x 15 minute paid breaks and 1 x 20 minute unpaid break with no additional annual leave.
As no agreement was possible between the parties the dispute was referred to the Conciliation Service of the Labour Relations Commission. A conciliation conference was held on the 25th April, 1997 but no agreement was reached. The dispute was referred to the Labour Court under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 20th May, 1997.
3. 1. The Union has no objection in principle to the introduction of a 4 shift operation providing agreement can be concluded on the shift premium.
2. Other comparable employments operating a 4 shift system pay well in excess of that on offer from the Company.
3. The Company should not include the 11% flexibreak allowance in their calculations when computing the new shift premium.
4. The workers will suffer a financial loss with the introduction of the new shift because their regular overtime with be eliminated.
5. The Company is financially sound. It is regarded as one of the best companies on the Irish Stock Market over the past 18 months. It can afford to concede this claim.
4. 1. The introduction of the additional shift is essential to meet the extra demand for the Company's products. There is potential for the creation of an additional twenty jobs as a consequence.
2. If the Company cannot produce the extra work at an economic rate the extra capacity will go to a UK competitor.
3. The claim as sought by the Union will make the Company's products uncompetitive.
4. The Union's claim is out of line with comparable companies in the area, many of whom pay 25% shift premium for similar working arrangements.
5. The Company's unit costs are out of line with UK competitors. It cannot afford to put these costs further out of line.
Having considered the submissions and evidence given by the parties the Court recommends the following arrangements for the operation of 12 hour 4 shift working.
Monday - Saturday - Basic Rate +11% flexi plus 35% shift premium
Sunday - Basic Rate +11% flexi plus 40% shift premium
(Note: - 11% flexi has been agreed for a number of years).
Breaks - 2 x 15 minutes tea break
1 x 25 minutes lunch break
- Holidays - The arrangements as outlined at paragraph 5.5 of Company's submission to stand. The Court notes the Company's undertaking to expedite the provision of a new canteen.
Signed on behalf of the Labour Court
29th May, 1997______________________
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.