Labour Court Database __________________________________________________________________________________ File Number: CD86758 Case Number: LCR10802 Section / Act: S67 Parties: GEC DISTRIBUTORS - and - ITGWU;FWUI;SMAUI |
Claims under the 26th wage round.
Recommendation:
5. Having considered the submissions made by the parties the
Court recommends that the employers offer be amended to provide
for:
(a) an increase of 4% with effect from 1st July, 1986,
(b) a further increase of 2% with effect from 1st April,
1987 in respect of an agreement to last for 1 year and
that the amended offer be accepted by the workers
concerned.
~
Signed on behalf of the Labour Court
John O'Connell
_______________________
Deputy Chairman.
11th December, 1986.
M.D./J.C.
Division:
Text of Document__________________________________________________________________
CD86758 THE LABOUR COURT LCR10802
CC861234 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR10802
Parties: G.E.C. DISTRIBUTORS (IRELAND) LTD
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SALES MARKETING AND ADMINISTRATIVE UNION OF IRELAND
FEDERATED WORKERS' UNION OF IRELAND
Subject:
1. Claims under the 26th wage round.
Background:
2. The Company employs 80 people at five locations around the
country. Of these, approximately 30-35 are in membership of the
Unions concerned. In early July the Unions met the Company and
served the following claims under the 26th wage round:
(a) a 12 month agreement from 1st July, 1986,
(b) a 10% increase in wages,
(c) (1) a positive review of drop bonus,
(2) pay parity of 2 individual new employees with
existing stores staff.
The Unions subsequently moderated (b) above to 8%. Agreement
between both sides was reached on elements (a) and (c) of the
claim. On item (b) the Company offered an increase of 4%. This
offer was rejected by the Unions, and as no progress was made, at
local level the matter was referred to the conciliation service on
22nd July, 1986. A conciliation conference was held on 19th
August, 1986. As no agreement could be reached both sides agreed
to refer the issue to the Labour Court for investigation and
recommendation on 16th September, 1986. A Labour Court hearing
was held on 30th October, 1986.
Union's arguments:
3. (a) The average percentage increase and duration of
agreements recorded under the 26th wage round so far is
7% over 13.6 months. In annualised terms this averages
out at 6.2% over 12 months. However 21% of all
increases vary between 7% and 8% over 12 months on a
phased basis.
(b) Purchasing power over the years has been badly eroded
by low percentage increases, inflation and high
taxation.
(c) The workers have accepted low level increases and
co-operated with the Company rationalisation (which
involved redundancies) to ensure the Company's
survival. There is a feeling that the Company is now
trading very successfully based on the throughput being
handled. Consequently an increase in excess of 4% is
required towards restoring their previous position.
(d) The argument that low percentage increases are
essential to prevent job losses is not accepted, as
there have been considerable job losses in the Company
over the years that had little or nothing to do with
the level of wages being paid.
Company's arguments:
4. (a) Due to the present depressed state of the market it is
not possible to pass on any increase to customers, as
this would make the Company less competitive and
undermine its future.
(b) In addition to basic wage increases, clerical and sales
employees benefit from additional scale increments.
Together with improvements in the pension scheme and
the offer of 4% this is the equivalent of a 11%
increase in wage costs in a full year (details supplied
to the Court).
(c) Compared to other competitors the Company's rates of
pay are far more favourable and an increase in basic
pay of 4% will not undermine this situation.
(d) The proposal of 4% for 12 months, while not justified
on the basis of the business available to the Company,
is an attempt to find a balance between the employees,
expectations and the realities of the business in which
they are employed.
RECOMMENDATION:
5. Having considered the submissions made by the parties the
Court recommends that the employers offer be amended to provide
for:
(a) an increase of 4% with effect from 1st July, 1986,
(b) a further increase of 2% with effect from 1st April,
1987 in respect of an agreement to last for 1 year and
that the amended offer be accepted by the workers
concerned.
~
Signed on behalf of the Labour Court
John O'Connell
_______________________
Deputy Chairman.
11th December, 1986.
M.D./J.C.