Labour Court Database __________________________________________________________________________________ File Number: CD86735 Case Number: LCR10803 Section / Act: S67 Parties: TARKETT - and - ITGWU |
Claim for an increase in pay under the 26th wage round.
Recommendation:
6. The Court considers that the terms of the package negotiated
were fair and reasonable but in an effort to resolve the dispute
the Court recommends that the duration of the pay agreement should
be reduced by two months and accordingly the second phase should
end on 30th September, 1987.
Division: Mr Fitzgerald Mr Collins Mr O'Murchu
Text of Document__________________________________________________________________
CD86735 THE LABOUR COURT LCR10803
CC861199 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 10803
PARTIES: TARKETT LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim for an increase in pay under the 26th wage round.
Background:
2. This claim concerns approximately 100 clerical, technical and
general workers employed by the Company in Mullingar. The
Company, which is a subsidiary of the Swedish Match Group,
manufactures vinyl flooring. The 25th wage round agreement
expired on 31st May, 1986. The Union lodged the following claim
for improved conditions under the 26th wage round:-
a. 15% increase for a twelve month duration without a pay
pause,
b. increase in all shift premia,
c. when plant is working twelve hour shifts that shift
premia be paid at night shift premia,
d. introduction of service pay and leave,
e. shorter work week,
f. revision of clerical wage scales,
g. introduction of clothing allowance for mixing and colour
line areas,
h. that the Company pay 50% of plan A of the V.H.I. for the
workers or equivalent amount of properly receipted
medical expenses for the workers spouses and children
under 18 years of age.
The Company rejected the claim. However, following local
negotiations, the parties recommended acceptance of settlement
terms which included a 5% increase over 6 months followed by a 4%
increase over 12 months in an eighteen month agreement to
terminate on 30th November, 1987 (the proposed settlement terms
are in the Appendix to this Recommendation). However, the workers
rejected the proposed terms.
3. On 16th July, 1986 the matter was referred to the conciliation
service of the Labour Court. A conciliation conference was held
on 16th September, 1986. However, no further agreement was
reached and on 18th September, 1986, the case was referred to the
Court for investigation and recommendation. A Labour Court
hearing was held on 29th September, 1986.
Union's arguments:
4. (i) The Company's offer was rejected because the duration
of the Agreement is too long. It holds a great deal
of uncertainty for the workers as an increase in the
rate of inflation in 1987 could adversely affect the
workers' purchasing power.
(ii) The workers make a major contribution to the Company's
competitiveness. They are a fully flexible and
co-operative workforce who operate the most modern and
sophisticated equipment.
(iii) The workers need to receive an increase well in
excess of the rate of inflation if they are to improve
their standard of living.
(iv) The Company's business is at an all time high and
therefore the workers consider it should be possible
to improve the offer.
(v) The Union considers that the Company should offer a
larger increase, reduce the length of the Agreement or
offer a reduced working week in lieu of a further
percentage wage increase.
Company's arguments:
5. (a) The Company acknowledges that the workers have been
most co-operative and have helped it through
difficulties in the past. However the Company has
rewarded the workers for their efforts.
(b) The Company made a realistic attempt to reach a
settlement. The Company's last offer was made on the
understanding that it would be accepted and it cannot
make a further offer. There were many benefits for
the workers in the package proposed.
(c) The Company has provided realistic settlements in the
recent wage rounds despite the difficulties which it
had to face during that period (details supplied to
the Court).
(d) The Company's policy has been to be honest with its
workers and to keep them fully informed of the
Company's position.
(e) The Company's survival and future development is
dependent on reducing costs and increasing
competitiveness.
RECOMMENDATION:
6. The Court considers that the terms of the package negotiated
were fair and reasonable but in an effort to resolve the dispute
the Court recommends that the duration of the pay agreement should
be reduced by two months and accordingly the second phase should
end on 30th September, 1987.
~
Signed on behalf of the Labour Court
13th November, 1986 Nicholas Fitzgerald
T.O'M./P. Deputy Chairman
26th WAGE ROUND
NEGOTIATED PROPOSALS
The following elements represent the Company's offer regarding the
26th Pay Round following extensive negotiations:-
1. Pay increase for a basic 40 hour week:-
An 18 month agreement with two phased pay increases, namely,
5% for 6 months followed by a further 4% for the next 12
months.
2. Service Leave - Effective commencement date 1st January 1987
and the date of qualification thereafter being the
anniversary date i.e. the date an employee joined the
company.
5 years service --- 1 extra day holiday
10 years service --- 2 extra days holiday
15 years service --- 3 extra days holiday (max.)
3. Shift Premium - an increase from 16 % to 20% for the hours
worked on the coating line when operating the 12 hour cover,
plus the additional overtime elements.
4. The contributory pension scheme, as is currently applied to
staff members, will be made available to I.T.G.W.U. members
who wish to join. Entry to the pension scheme will be after
31st January 1987, at a date to be decided between
union/management. There will not be any back service
elements.
5. The Company will conduct a further extensive salary survey
and review all relevant clerical staff salaries in the light
of the results, which will be completed by the 1st December
1986.
Should any deficiencies be highlighted these will be
corrected retrospectively to 1st June 1986. Normal salary
reviews will take place in January 1987.
6. The House Agreement has been renegotiated and many
conditional improvements have been mutually agreed.
Acceptance is required.
7. Lead-in payments for polyurethane. It has been agreed that
all operating requirements for the polyurethane process will
be met and in the meantime the subject of payment will be
referred to conciliation.