INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Hayes
Employer Member: Ms Doyle
Worker Member: Mr Shanahan
1. Red circling Terms and Conditions.
2. The case concerns a dispute between the Company and Union in relation to two workers who have been redeployed following the closure of the Dundrum Sawmills in Co. Tipperary. The Union is seeking that the two claimants have their terms and conditions of employment red-circled following the redeployment in accordance with the provisions of a collective agreement concluded between the parties.
Management's position is that the workers chose to remain in employment and not to take voluntary redundancy. In addition Management contends that it has agreed to a temporary red circling arrangement to facilitate the workers transition to their new positions but that a permanent red circling arrangement is inappropriate and unsustainable and at variance with the terms of their contracts of employment.
The dispute was not resolved at local level and was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached the matter was referred to the Labour Court on 3rd April, 2013 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 5th July 2013.
3. 1. The Collective Agreement reached between the parties (Sept 2012) provided that there would be no changes to the terms and conditions of employees arising from the implementation of the Agreement.
2. The Union does not accept the temporary nature of the red circling and is seeking to have the earnings of the two claimants protected permanently, in line with the provisions of the Agreement.
4. 1. The Company does not consider it appropriate or sustainable to permanently red circle the workers terms and conditions of employment. Concession of the Union's claim would result in these workers receiving a higher rate of pay than those they are working with.
2. The workers contracts of employment provides that they will be paid in accordance with the production linked payment system that applies within the organisation.
Section E of the Coillte Transformation Agreement 2012 provides that there will be no change to the Terms and Conditions of employment or pay structures of employees arising from the implementation of the provisions of this agreement other than where specifically provided for in the agreement
There will be no compulsory redundancies in Ciollte as a direct consequence of the provisions of this agreement
The Workers involved in this case were redeployed under the terms of this Agreement on the closure of the Hardwood Project at Coillte Wood Products, Dundrum, Co Tipperary. The Union is seeking to have their rates of pay protected in accordance with the provisions of Section E of the Agreement.
Management maintains that the Workers employment contracts state
- “The employee shall be entitled to remuneration in accordance with production linked payment systems currently in operation within Coillte and shall provide for a daily rate of IR 53.75 in respect of sawmill operations”.
Having carefully considered the submissions of both parties the Court finds that the terms of the Transformation Agreement 2012 protects the earnings of the workers in this case on a personal to holder basis as claimed by the Union.
The Court recommends accordingly.
Signed on behalf of the Labour Court
26th August, 2013.______________________
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.