Labour Court Database __________________________________________________________________________________ File Number: CD86753 Case Number: LCR10823 Section / Act: S67 Parties: PUNCH & CO. LTD - and - ITGWU |
Claim on behalf of sixteen general operatives for an increase in basic pay in respect of the 25th wage round.
Recommendation:
6. In all the circumstances of this case the Court is of the
view that the Company's offer of 6% from 1st April, 1986 for a
period of 12 months plus a payment of #75 is reasonable and should
be accepted.
The Court so recommends.
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD86753 THE LABOUR COURT LCR10823
CC86/861 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 10823
PARTIES: PUNCH AND COMPANY LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of sixteen general operatives for an increase
in basic pay in respect of the 25th wage round.
Background:
2. The Company manufactures printing inks and employs a total of
twenty-five workers at its Dublin plant. The workers involved in
this claim are employed in the Company's printing inks division.
3. The terms of the 25th wage round expired for the workers on
31st March, 1986. Their current weekly basic rates of pay are as
follows:-
Paste inks Liquid inks
# 136.72 # 143.85
The Union, on behalf of the workers concerned, served a claim on
the Company for a 10% increase in the basic rates in respect of a
12 month 26th round wage agreement, effective from 1st April,
1986. The Company rejected the claim but in the course of
negotiations at local level offered a basic pay increase of 6%.
This was unacceptable to the Union and the matter was referred, on
13th May, 1986, to the conciliation service of the Labour Court.
Conciliation conferences were held on 22nd August, 1986 (the
earliest date suitable to the parties) and 29th September, 1986.
At the resumed conference on 29th September the Company made an
improved offer of 6% plus #75 lump sum in respect of a 12 month
agreement. This was rejected by the workers and the claim for a
10% basic pay increase over 12 months was referred to the Labour
Court for investigation and recommendation. The Court
investigated the dispute on 20th October, 1986.
Union's arguments:
4. (i) According to Central Statistics Office (CSO) figures
the average earnings in manufacturing industry for a
42 hour week, inclusive of the 25th wage round
adjustments, is #182.00. In these circumstances,
given the comparatively low level of earnings of the
workers concerned a claim for a 10% increase in pay
is fully justified.
(ii) The Company justifies its offer on the basis of the
current low level of inflation. However, when the
inflation rate was high in the past this was not
referred to by the Company when determining pay
increases and in fact the workers had to accept pay
increases over the years well short of the level of
inflation obtaining at that time.
(iii) Acceptance of the Company's offer would further
increase the wide pay gap which already exists
between the workers and other groups in the Company.
(iv) The Union's claim is fair and reasonable in the
circumstances and should be conceded.
Company's arguments:
5. (a) The Company operates in a highly competitive and
specialised market and the contractual nature of the
work carried out makes it extremely difficult for it to
recoup costs. In addition, it has been over 3 years
since the Company achieved a price increase. The
Company is further burdened by the high level of
imported products, particularly in the liquid inks
area, being dumped on the Irish market at low cost
prices. Therefore, any further increase in costs would
jeopardise the Company's chances of remaining
competitive.
(b) The rates of pay and conditions of employment in the
Company compare favourably with other ink
manufacturers.
(c) The Company's offer is fair and generous and is above
the norm established for the 26th wage round, both in
the industry and in industry generally.
(d) All other groups of workers in the Company have
accepted a pay increase in line with that offered to
the workers concerned.
(e) The Company has made it clear to the Union that its
offer is the most it can afford and is subject to no
cost increasing claims for the duration of the
agreement.
(f) In all the circumstances the Company's offer should be
accepted.
RECOMMENDATION:
6. In all the circumstances of this case the Court is of the
view that the Company's offer of 6% from 1st April, 1986 for a
period of 12 months plus a payment of #75 is reasonable and should
be accepted.
The Court so recommends.
~
Signed on behalf of the Labour Court.
Evelyn Owens
__25th__November,___1986. ___________________
T. McC. / M. F. Deputy Chairman