From the Crusty Bakeries case study, it is obvious that the bakers have found it difficult to come to terms with the new proposals, which gives them cause to have a grievance.
Under the circumstances, Crusty Bakeries should have taken into consideration the employees reaction towards the introduction of new technology and possible redundancies.
According to the Labour Relations Agency, ‘A written statement must specify the person, to whom, an employee can apply to seek redress should a grievance arise relating to their employment and must describe the manner, in which such a grievance can be raised. Grievances may arise over pay, terms of employment or working conditions and the employee should always be given the opportunity to have a full and fair hearing'.
The way in which an employee can pursue a grievance, should be made known to all employees. This should be done by drawing up and issuing a grievance procedure to all employees and be agreed with a trade union. Any grievances should be discussed between the employee and the supervisor. Any further stages which exist for dealing with unresolved issues, the employee has the right to be accompanied by a trade union official. Under normal working conditions, this procedure should take no longer than 1 day.
Labour Relations Agency
GMB
- Conclusions
Crusty Bakeries have not communicated clearly on their procedures of discipline and grievances towards their employees, especially at their present situation. I believe, that employees were not informed of these procedures when they commenced employment with Crusty Bakeries, as their case study proves this, by telling us that, ‘the employees were only informed on these matters now and again, or whenever the situation arose’. Throughout my report, all the findings are accurate and related to Crusty Bakeries with general guidelines from the Labour Relations Agency, GMB and ATGWU.
5.0: Recommendations
Employees need to know their rights and fully understand the organisations policy on discipline to current employees. I would recommend that Crusty Bakeries issue an employee handbook, which outlines this, preferably within 2 months of commencing employment. A sample copy of what the handbook should contain is enclosed.
Supervisors should arrange personal action plans with employees to monitor their work and maybe give the employee the opportunity to voice any opinions. I think this would make a vast improvement in working conditions.
With the up-coming changes, I would strongly urge Crusty Bakeries to plan meetings with their employees to discuss the situation and offer assistance for any grievances that might arise from it.
(2.2) 3.0 Findings
Since the introduction of new technology within Crusty Bakeries, it seemed to cause some distress to the bakers. This is because their traditional baking skills are being replaced with automated processing, causing their jobs to be at risk. If we look at the staffing table of Crusty Bakeries case study, we can see that the most affected are the bakers and clerical staff, with a total of 20 job losses. The bakers have taken it upon themselves to deal with the situation, although they went about it the wrong way, but I still feel that we should keep this in mind.
- Absence & Punctuality
For the 14 bakers, absence and punctuality has seemed to increase. This type of behaviour results in a verbal warning from the supervisor which will be recorded and kept on file for 3 months and can be used as evidence if further action becomes necessary.
GMB
- Extended Break
The next step by the bakers, was to extend their lunch break by half an hour, taken at a local public house. Crusty Bakeries would need to establish whether or not alcohol was consumed by the bakers, whilst on their lunch break. If the bakers did consume alcohol, this would be considered as gross misconduct, which could lead to summary dismissal.
As we do not have the facts, their bad time keeping by half an hour and also being a repetition of a similar offence, would result in being given a written warning, which is kept on file for 4 months.
GMB
- Poor Quality
The bakers continued by not adhering to the baking mix ratios, which is extremely important for Crusty Bakeries. This type of behaviour falls under serious misconduct (persistent lack of interest, work effort or poor quality). At this stage, the bakers are facing dismissal. They can, be suspended with pay while the matter is being investigated. GMB
- Safety Regulations
Finally, regulation white coats and hats were not being worn the week by the bakers and because they ignored safety rules, it is considered as a major offence, which from all the other offences gathered, would lead to an indefinite dismissal.
GMB
In all cases, Crusty Bakeries need to give the bakers the opportunity to have a personal hearing and to establish the facts promptly. Where disciplinary action is taken, it should be explained clearly to the employee and written records of action taken, should be kept. It should be emphasised that unless there is a specific reference to suspension without pay in the contract of employment, employers should avoid the use of this particular action either as ‘cooling off’ period or as a penalty. No employee should be dismissed for a first breach of discipline. Labour Relations Agency
- Conclusions
If this case were straightforward, the bakers would have been dismissed on the 3.3 stage, due to the seriousness of the offence and the repetition of minor offences. As this is not a straightforward case, due to elements resulting in their behaviour, it should be noted that the bakers had a good record before they found out about the proposed plans. We have to take into consideration that if the 14 bakers were informed properly of the proposed plans by management, they may have acted differently.
- Recommendations
I would not dismiss the 14 bakers immediately. Instead, I would encourage management, 14 bakers and their trade union, to call a meeting so that they can discuss recent events and maybe reach a sensible solution. Management is partly to blame and should accept this, by not dismissing the bakers.
(2.3) 3.0 Findings
Crusty Bakeries plan redundancies for as early as November and in order to
proceed with this, there is a requirement that if an employer proposes to
dismiss employees as redundant, at least 20 employees at one establishment, it
is over a period of 30 days or less. With this in mind, Crusty Bakeries would
need to announce redundancies around the beginning of October.
New technology means a 50% reduction in staff members across baking,
operator and clerical grades however this would not affect machine operators
as 90% of remaining jobs are for operators. This leaves bakers and clerical
workers, totalling to 22 employees, who are facing redundancy. At this stage,
the appropriate trade unions, both the ATGWU (formerly bakers union) and
the SIPTU, would both be involved.
Redundancy has hit employees at Crusty Bakeries due to fewer employees
being needed. Redundancy payments will be issued to the employees of
Crusty Bakeries, who have at least 2 years of continuous and depends on their
age, length of service and current weekly wage.
Redundancy payments for the bakers and clerical workers are calculated as
follows:
Bakers
Pay p/a = 16,000/ 12 months / 4 weeks = £333.33 x 1.5 weeks pay = £500 x
10 years of service = £5,000
Clerical
Pay p/a = 8,000/ 12 months / 4 weeks = £166.66 x 1 weeks pay = £166.66 x
8 years of service = £1,333.33
There is a certain criteria that must be followed when deciding redundancy.
The old saying last in / first out, no longer applies to redundancy decision
making. Decisions are made on performance, attendance, record and service.
Some companies work on a point system where the employees have the lowest
points, maybe due to previous warnings or bad work performance. These type
of employees would tend to be chosen for redundancies first.
Another approach for redundancy exit, would be asking for volunteers or looking at those employees who where near retirement. The average retirement age for men is around 65 and as the bakers are all aged 60, they should be selected first.
ATGWU-Belfast
Department of Economic Development.
4.0 Conclusion
After studying several codes of practices on redundancy and Crusty Bakeries
case study, I cannot see the company having any other option but to issue redundancies. Using methods of volunteers and retirement would help the company reduce their staff.
5.0 Recommendations
Crusty Bakeries should consult with a trade union before announcing
Redundancies and this should be done in October. This not only lets the employees know about the proposed plans but gives them a chance to look for alternative employment as soon as possible. The redundancy payment method should also be used and it is up to Crusty Bakeries if they wish to enhance redundancy payments. I recommend that as the bakers are close to retirement age and their jobs are being replaced, they should get chosen for redundancy first.
(2.4) 3.0 Findings
Crusty Bakeries should use the same approach towards redundancy as Mothers Pride Bakeries. Employees at this company was facing redundancies due to the high cost of expenses in running the plant when production was slow. This then resulted in the company transferring their operations back to their main plant in Belfast, where it was more cost effective.
Consultations were held between Mothers Pride management and the Amalgamated Transport and General Workers Union, to discuss redundancies and relocation of the plant and employees. The ATGWU were involved in these discussions on behalf of the employees as 100 jobs were being affected and because of this the period of consultation was at least 90 days.
For the ATGWU to take a constructive part in the discussions, Mothers Pride Bakeries were required to disclose their proposals in writing and they consisted of:
- The reasons for the proposals
- The numbers & descriptions of the employees that are to be made redundant
- The total employees employed with the company
- The proposed method of selecting the employees to be made redundant
- The proposed method of carrying out the dismissals
- The proposed method of calculating redundancy payments
The aim of the union’s consultation, was to find ways of avoiding the redundancies, or reducing the numbers. Mothers Pride Bakeries consulted with the union to help reach an agreement, this is all known as collective bargaining. The employees at Mothers Pride Bakeries gained an extension from the original closure date of early December 1999 until 15th January 2000 to allow proper assessment of alternatives.
Redundancies were officially announced after a meeting between the ATGWU and management of Mothers Pride Bakeries, which included redundancy payments. The payments that were calculated for the employees were done in the normal way. Mothers Pride Bakeries also decided to enhance these payments for their employees, which was an additional payment of £500 and full pay was given in lieu of notice.
Mothers Pride Bakery offered their employees the opportunity of continuing their employment with the company, although it meant the employees moving to Belfast. One operator did take this position, however within a couple of weeks, decided that it was not suitable.
Mothers Pride Bakery informed the Department of Higher & Further Education and the Training & Employment Agency of their proposed redundancies. Employees who had worked more than 2 years for the company were also allowed time off with pay, during working hours, to look for another job or to make, arrangements for training. Mr Billy Conduit
ATGWU
Regional Industrial Organiser
(Mothers Pride Representative)
-
Conclusion
Crusty Bakeries would benefit from using the same approach as Mothers Pride Bakery, as the organisations are similar. Collective bargaining should always be used, however giving the Bakers and Clerical workers the opportunity to continue employment, as machine operators would not be viable. This would mean a large cut in wages, which they are not used to and because they are already trained in their profession. Crusty Bakeries have no alternative but to dismiss the employees.
5.0 Recommendations
I recommend that Crusty Bakeries use the same method as Mothers Pride Bakery, by informing the DHFETE of their situation and offer the employees time off with pay to look for another job.
Appendix
- Crusty Bakeries case study.
- Disciplinary procedures handout by LRA.
- Grievances procedures handout by LRA.
- Redundancy handout by LRA.
- Redundancy talk by Mr Felix McCrossan - GMB
- Mothers Pride Information by Mr Billy Conduit – ATGWU
Bibliography
- ER 3 – Redundancy payments by DED.
- ER 4 – Redundancy consultation & notification by DED
- ER 9 - Time off when facing redundancy by DED
- ER 13 – Unfairly dismissed? by DED
- ER 15 – Reasons for dismissal by DED
- ER 18 – Fair & Unfair dismissal by DED
- Handbook from ATGWU
- Information pack from Labour Relations Agency
- Discipline & Grievance procedures by GMB
- Mothers Pride redundancy payments - Fax by Mr Billy Conduit - ATGWU
