INDUSTRIAL RELATIONS ACTS, 1946 TO 2004
S2(1), INDUSTRIAL RELATIONS (AMENDMENT) ACT, 2001,
AS AMENDED BY THE INDUSTRIAL RELATIONS(MISCELLANEOUS PROVISIONS) ACT, 2004
SWORDS PACKAGING LIMITED
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr McGee
Employer Member: Mr Murphy
Worker Member: Mr O'Neill
1. Referral from the Labour Relations Commission under the Industrial Relations (Amendment) Act, 2001, as amended by the Industrial Relations (Miscellaneous Provisions) Act, 2004.
2. The Company was established in January, 2006, for the purpose of providing labour for the packaging of fruit on the premises of its only customer, Fyffes Group Ireland Limited. It was established following a transfer of undertakings from Roster Packaging Limited which had previously provided contract labour to Fyffes.
In May, 2006, the Union referred a number of issues to the Advisory Service of the Labour Relations Commission under the provisions of the Enhanced Code of Practice on Voluntary Dispute Resolution (S.I. No. 76 of 2004). The following issues were referred to the Court failing agreement between the parties;.
Rates of Pay
Briefly, the Union's claim on the three items is as follows:-
Rates of pay:-The Union is seeking a basic hourly rate of €8.85 for new workers, €9.65 for staff with 12 months' service as of January, 2006, (both rates to apply from January 2007 before Towards 2016 applies). The Union wants a small number of workers currently being paid €9.21 per hour to have it increased to €10 per hour.
Shift Premium:-The Company has proposed a shift rate of 12%. The Union is seeking 25%.
Overtime:-The Union is seeking time plus one half for all hours over 39 hours per week, time plus one half for the first four hours on Saturday and double time thereafter, and double time for all hours worked on Sunday.
The dispute was referred to the Labour Court under the Industrial Relations (Amendment) Act, 2001, as amended by the Industrial Relations (Miscellaneous Provisions) Act, 2004, on the 9th of October, 2006. A Labour Court hearing took place on the 5th of December,2006.
3. 1.Rates of pay:workers believe that their rates of pay are out of line with "living wage" norms, (the Union supplied a list of comparators who pay higher wages).
2.Shift premium: the Company's proposed rate of 12% for night shift falls far short of premia for night work across all industries.
3.Overtime:although the Company has stated its intention to improve overtime to time plus one quarter after 39 hours this is still clearly out of line with all industries with collective representation where time plus one half is paid after 39 hours.
4. 1.Rates of pay:the Company proposes to deliver a 10.5% pay increase on the 1st of January, 2007, for employees on €7.65. From the 1st of July, 2007, the rate will be €8.67 which is the same as the proposed new National minimum wage rate. The Company has also proposed increases plus the first phase of Towards 2016 for all other hourly rates.
2.Shift premium:the Company currently pay 8.5% for night shift but proposes increasing this to 12% effective from 1st of January, 2007. This is clear evidence of its willingness to address the Union's concerns.
3.Overtime:the Company proposal to pay overtime at time plus one quarter for the first four hours after 39 hours worked per week and all additional overtime hours to be paid at time plus one half is a considerable move by the Company from paying overtime at time plus one half for all overtime hours worked on Sundays only.
Having considered the submissions of the parties in this case, the Court recommends as follows:-
Rates of pay:- With effect from 1st January, 2007, the rates of pay should be increased as follows:-
€8.85 per hour.
After 12 months' service €9.65 per hour
Over 5 years' service €10.00 per hour (including service with the previous employer(s) as applicable under the Transfer of Undertakings Regulations, 2003)
All these rates should attract the first phase of "Towards 2016" with effect from the same date.
The Court notes the Company's commitment to apply the terms of National Agreements from January 2007 onwards.
Shift Rate:Night Shift:
While the Company has said that it does not expect night shift to occur in the immediate future, where this does arise, the premium should be 25%.
The Court notes the commitment made by the employers' representative at the hearing that IBEC will advise the Company on the accepted premium rates for a 2 - shift system. Should this become an issue and not be agreed, the parties should return to the Court for a definitive recommendation.
Overtime:Should be paid at the rate of time plus one half for all weekday hours above 39 per week. The first four hours worked on Saturdays should also be paid at Time plus one half. All other hours worked on Saturday and all hours worked on Sundays should be paid at double time.
Signed on behalf of the Labour Court
9th January, 2007______________________
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.