A new Registered Employment Agreement between the Services, Industrial, Professional and Technical Union and one of Ireland’s largest mushroom companies is regarded as something of a milestone for the industry. The main elements of the new agreement cover aspects of pay and working time. Minimum pay rates are set for the workers, and conditions relating to productivity-based pay are outlined. Minimum and maximum weekly working hours are also set.
The mushroom industry has, on occasion, been associated with alleged exploitation of migrant workers and low pay, attracting adverse publicity. In this context, Drimbawn Mushrooms Ltd – part of the Monaghan Mushrooms Group, which is the largest mushroom production and marketing company in Europe – and the Services, Industrial, Professional and Technical Union (SIPTU) formally lodged a Registered Employment Agreement (REA) with the Labour Court on 12 December 2007.
Registered employment agreements Employment agreements (provided for in the Industrial Relations Acts of 1946 and 2004) are negotiated by two sides in an industry or enterprise. Where the Labour Court is satisfied that the agreement meets the statutory requirements, it will register the agreement. The effect of this is to make the provisions of the agreement legally enforceable in respect of every worker of the class, type or group to which it is expressed to apply and to his or her employer, even if such worker or employer is not a party to the agreement. Currently, 46 Registered Employment Agreements (REAs) are on the register maintained by the Labour Court. While the REA in this case only specifically relates to one mushroom company, SIPTU hopes that it will help to improve standards across the industry. The Irish mushroom industry is estimated to employ about 2,000 people, although much of the work is seasonal, and Drimbawn Mushrooms Ltd is one of the largest companies in this area of economic activity.
Content of agreement The main elements of the new REA pertain to pay and working time.
Pay In relation to pay, the following minimum hourly rate will be paid to operations workers and mushroom harvesters who are paid by the hour: Euro 9 with effect from 1 July 2007; Euro 9.22 from 1 April 2008; Euro 9.46 from 1 October 2008; Euro 9.70 from 1 April 2009.
Productivity-related pay In addition, different minimum hourly pay rates will apply to mushroom workers who are paid according to a productivity-based payment. Such payment to mushroom harvesters will be based on their productivity measured in units, and the number of units by price per unit will determine the gross earnings.
The pay reference period will be four weeks, with 13 pay reference periods in a 52-week calendar year. The gross pay earned by workers will be divided by their working hours to calculate the average hourly rate in a pay reference period. Rest periods are not included in working hours for the purpose of calculating the average hourly rate.
The average hourly rate will be calculated on a weekly basis and, where the mushroom workers’ earnings fall below the productivity hourly rates, the employer must add to the total to ensure that the earnings reach these rates. Productivity hourly rates are provided to guarantee that the mushroom harvesters’ earnings cannot fall below the following average hourly rates: Euro 8.65 with effect from 1 July 2007; Euro 8.87 from 1 April 2008; Euro 9.10 from 1 October 2008; Euro 9.33 from 1 April 2009.
Rates for trainees and supervisors Minimum structured hourly rates are also set for trainee mushroom harvesters, while supervisors will receive the following minimum hourly rates: Euro9.90 with effect from 1 July 2007; Euro10.14 from 1 April 2008; Euro10.41 from 1 October 2008; Euro10.67 from 1 April 2009.
Working time The minimum rostered hours for a worker in a six-day working week, except in cases of ‘short time working or lay-off periods’, will be 30 hours, while the maximum working time will be 48 hours. Workers will be rostered at least one day off in a seven-day week and the roster will be prepared at least one week in advance. Every third week, the worker will work a five-day week, Monday to Friday, and must have a full weekend (Saturday and Sunday) off.
Annual leave for full-time workers will consist of four working weeks in a leave year in which they work at least 1,365 hours (1,365 divided by 39 weekly working hours equals 35 weeks). The REA also provides for bereavement leave and a sick pay scheme.