Labour Court Database __________________________________________________________________________________ File Number: CD86634 Case Number: LCR10773 Section / Act: S67 Parties: IRISH METALS AND CASES - and - FWUI |
Claim for an 8% pay increase for 12 months plus one additional day's leave under the 26th wage round for 32 general operatives.
Recommendation:
5. The Court, having considered the submissions of the parties,
recommends that the Company amend its offer to provide for an
increase of 3% for a period of six months and a further increase of
3% in respect of an agreement for a period of one year, and that
the offer be accepted by the workers concerned.
The Court does not recommend concession of any other claims.
Division: CHAIRMAN Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD86634 THE LABOUR COURT LCR10773
CC861000 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 10,773
Parties: IRISH METALS AND CHEMICALS LIMITED
(Represented by the Federated Union of Employers)
and
FEDERATED WORKERS' UNION OF IRELAND
Subject:
1. Claim for an 8% pay increase for 12 months plus one additional
day's leave under the 26th wage round for 32 general operatives.
Background:
2. The 25th wage round for the workers concerned expired on the
30th June, 1986, and on the 16th May, the Union served the
following claim on Management:-
(a) 10% increase in basic pay
(b) 2 extra days' annual leave
(c) improvement in the service pay scheme
(d) staggered breaks and early morning overtime to be
incorporated into the contract of employment.
The Company responded by offering a 4% increase over twelve months
(two phases of 2%) and rejected the claims regarding annual leave
and service pay. It indicated that it saw no difficulty with claim
(d). The Union, having considered the Company's response, amended
its claim to 8% over twelve months plus one additional day's annual
leave. This too was rejected by Management and on the 10th June,
the matter was referred to the conciliation service of the Labour
Court by the Union. At a conciliation conference, held on the 24th
July, the Company revised its offer to a phased 5% increase(3% for
six months followed by 2% for a further six months) but this proved
unacceptable to the Union and on the 30th July, the matter was
referred to the Labour Court for investigation and recommendation.
A Court hearing took place on the 18th September, 1986, the
earliest date suitable to the parties.
Union's arguments:
3. (a) Of the first 100 settlements in the 26th wage round, 9%
of companies have conceded additional holidays.
It is the Union's contention that its claim for 21
days annual leave is fair and is not out of line ( a
list of 64 companies that have conceded 21 or more days
annual leave was supplied to the Court).
(b) The rates of pay in the Company are not particularly
good when compared with other companies in the same
industry. According to the Central Statistics Office,
the average hourly rate of pay is #4.64, which for a
forty hour week amounts to #185.60. This figure is
well above the rates obtaining in the Company at
present.
(c) An analysis of the first 100 settlements in the 26th
round shows that the average increase to date equals
6.46% over twelve months. The Company's offer
represents an increase of only 5.06%. A further
analysis, carried out by the Irish Congress of Trade
Unions, shows that of the first 81 settlements in the
26th round, 56.6% were for 6% or more, 7% were between
6.5% and 6.9%, while 22% were for between 7% and 7.9%.
Clearly therefore, the Union's claim is reasonable in
the context of the round to date.
(d) The Company, as a subsidiary of a multi-national, sells
its products to its parent company rather than to end
users. Consequently it is impossible for the Union to
determine the real market conditions in which the
Company has to operate and therefore, the only relevant
criteria against which it can judge its members
performance is by way of reference to the general
movement of pay within the current wage round.
Company's arguments:
4. (i) The Company's products are exported to European markets
and face very heavy competition there. These markets
continue to decline in the present recession,
especially in the steel, motor-manufacturing and
heavy-engineering industries. The reduction can be
measured through an examination of the tonnage shipped
from the Company's factory in Dublin:
1977 936 tonnes
1986 579 tonees.
This represents a drop of 39%
(ii) Management understands the claimants' needs, being
employees themselves. In previous years Management has
negotiated settlements which brought wage increases
from #55 in 1977 to #153 in 1986, an increase of 178%.
The cost of living rose by 168% in the same period.
(iii) Management believes that given its present trading
position, the unique cost factors of manufacture in
Ireland, its previous record of settlements to its
employees, the present inflation level, the natural
advantages and lower inflation of its non-Irish
competitors, the low level of order books and the high
stock levels in its Dublin premises, its final offer of
a phased 5% increase is fair and should be accepted by
the claimants.
RECOMMENDATION:
5. The Court, having considered the submissions of the parties,
recommends that the Company amend its offer to provide for an
increase of 3% for a period of six months and a further increase of
3% in respect of an agreement for a period of one year, and that
the offer be accepted by the workers concerned.
The Court does not recommend concession of any other claims.
~
Signed on behalf of the Labour Court
John O'Connell
22nd October, 1986 ---------------
D.H./U Deputy Chairman