Labour Court Database __________________________________________________________________________________ File Number: CD86704 Case Number: LCR10764 Section / Act: S67 Parties: CROWN CONTROLS - and - AEU |
Claim on behalf of 296 workers under the 26th Pay Round.
Recommendation:
5. Having regard to the current trading position of the Company
the Court is of the opinion that the Company's offer is reasonable
and therefore recommends that it be accepted by the workers
concerned.
Division: Mr O'Connell Mr Collins Mr O'Murchu
Text of Document__________________________________________________________________
CD86704 THE LABOUR COURT LCR10764
CC861357 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR10764
Parties: CROWN CONTROLS LTD
and
AMALGAMATED ENGINEERING UNION
Subject:
1. Claim on behalf of 296 workers under the 26th Pay Round.
Background:
2. The 25th Pay Round agreement expired on the 31st May, 1986 and
the Union on 30th May, served the following claim on the Company
in respect of the 26th wage round:
(a) A 20% increase over 12 months.
(b) One day extra service holiday.
(c) An allowance in personal time on the following basis.
Up to 5 years; 8 hours per year; 5 years 9 hours per
year; 10 years; 11 hours per year; 15 years; 14 hours
per year; plus an extra 3 hours every additional 5
years.
During the course of the negotiations which commenced on 24th
June, 1986, the Company indicated it expected that savings from
increased productivity due to the introduction of new technology
in 1984 would be included in any pay settlement. However, the
Union did not receive a mandate to discuss the productivity issue
as part of the pay round.
The parties agreed to suspend talks on the 26th Wage Round until
discussions on the productivity issue had been resolved. The
Union submitted a claim for a 5% increase in respect of
productivity. The Company agreed to accede to this claim, to
allow talks on the wage round to continue. Negotiations resumed
on the 12th August, 1986 and the Company rejected items (b) and
(c) of the Unions claim. The matter was referred to the
conciliation service. A conciliation conference took place on
28th August, 1986. As no progress could be made, both sides
agreed to refer the matter to the Labour Court for investigation
and recommendation. A Labour Court hearing took place in Athlone
on 23rd September, 1986.
Union's arguments:
3. (i) The Company's offer is out of line with that of which
has been settled so far in the 26th Wage Round.
(ii) The Company has recently acquired another production
outlet in West Germany and the Union is convinced that
the sum of monies gained as a result of increased in
productivity has been used to finance the German
operation.
(iii) In 1985 service pay arrangements were swopped for
service holidays effective from 1986. Consequently
the Union are looking for an extra day holiday as the
workers are still on the minimum 20 days holidays.
Company's arguments:
4. (a) The Company has always taken the view that it will
give its employees wage increases which are as such as
it can afford having regard to its need to remain
profitable and competitive. Previous pay settlements
reflect this philosophy.
(b) The Company's offer of 5% was a final offer made in
anticipation of achieving agreement. It is the
maximum it can afford in the present circumstances.
This is particularly the case when it is seen against
a 5% wage increase which formed the basis of the
agreement on productivity.
(c) The plant which was opened in West Germany was
financed by funds raised in that country and not by
the Irish Company.
(d) Crown Controls Ltd offers its employees service
holidays and personel time allowance which are
comparable with the best arrangements in other
companies throughout the country. It is not in a
position to improve on what are generous and expensive
conditions.
RECOMMENDATION:
5. Having regard to the current trading position of the Company
the Court is of the opinion that the Company's offer is reasonable
and therefore recommends that it be accepted by the workers
concerned.
~
Signed on behalf of the Labour Court
John O'Connell
___________________________
Deputy Chairman.
31st October, 1986.
M.D./J.C.