Labour Court Database __________________________________________________________________________________ File Number: CD86724 Case Number: LCR10777 Section / Act: S67 Parties: KLINGE & CO - and - ITGWU |
Claim on behalf of 70 production workers for an increase in wages and fringe benefits under the 26th wage round.
Recommendation:
5. The Court considers that the terms offered in direct
negotiation are fair and reasonable and recommends that they be
accepted.
Division: Mr O'Connell Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD86724 THE LABOUR COURT LCR10777
CC861408 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR10777
Parties: KLINGE AND COMPANY LTD
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of 70 production workers for an increase in
wages and fringe benefits under the 26th wage round.
Background:
2. The 25th wage round expired on 31st December, 1985. The Union
wrote to the Company requesting a meeting for the purpose of
negotiating an increase in wages and other fringe benefits under
the 26th wage round. The parties held a number of meetings and
the Company by letter dated the 9th June, 1986 made the following
offer to the Union.
(a) A 6% increase in basic rates effective from 1st
January, 1986 to apply for 12 months.
(b) The Christmas bonus to be increased from #100 to
#110 per annum.
(c) The annual leave entitlement to be increased by 1
day to 21 days per year. This day to be a fixed
day selected by the Company.
(d) The bank time to be increased during the peak
tourist months of July and August from 1 hour to 1.50
hours per month.
The offer being subject to:
(i) No further cost increasing claims for the duration
of the agreement.
(ii) Industrial peace to apply.
(iii) Maintenance of flexibility and co-operation with
ongoing change.
The negotiating Committee of the Union felt they were not in a
position to recommend the above offer for acceptance, and at a
subsequent general meeting, followed by a secret ballot the offer
was rejected by the workers concerned. The Union notified the
Company accordingly, and informed them that they were available
for further negotiations. The Company informed the Union that
their offer was final. The issue was referred to the conciliation
service on 12th June, 1986. A conciliation conference took place
on 4th September, 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 was held in Tralee on
1st October, 1986.
Union's arguments:
3. (i) The workers' concerned usually received increases which
were generally in line with those received by middle
management. It is understood that middle management
received an increase in the region of 7%/8%.
(ii) The production workers expected to be treated no worse
than any other group in the Factory.
(iii)There has been an increase in productivity in the
factory.
(iv) An increase in excess of #10 was expected on the annual
Christmas bonus when tax and P.R.S.I. deductions are
taken into account the actual amount of Christmas bonus
is quite small.
(v) The situation regarding annual leave entitlement is well
founded in that prior to 1979 the Company was well ahead
of other industries both in Kerry and throughout the
country. There were however, no concessions given by
the Company following the increase in holiday
entitlements in the 1979 and 1981 National
Understandings. The present increase of one day is seen
as rectifying this situation and it is hoped that
further increases will be given on an ongoing basis.
(vi) The increase in relation to bank-time for the months of
July and August offered by the Company is inadequate.
The month of June should also be included as long
traffic jams also occur in this month due to the influx
of tourists.
Company's arguments:
4. (a) Given the background of a substantially lower rate of
inflation, currently 3.1%, the increase which has been
offered will cost more than double the current rate of
inflation.
(b) The Company has to be run as efficiently as possible and
it is imperative in an international company like Klinge
that unit costs be kept in-line.
(c) The increases which have been offered this year are the
most which can be offered in terms of additional costs
this year.
(d) During the past six years, only very marginal increases
in prices for the Company's products have been granted.
During the same period substantial cost increases have
been incurred. This has the inevitable effect of making
the Company less cost competitive, at a time when the
Company is endeavouring to maintain its unit costs
vis-a-vis Germany.
(e) Substantial additional investment in the order of #6.5
million has been made in the Killorglin plant within the
past 2 years in order to try to provide a more secure
long term future for the Company. However, there are
very substantial financial costs associated with these
investments which at present are not being recouped
through additional sales resulting from these
investments. It is anticipated that additional sales
will accrue in the future to cover these costs, but that
is not the case at the moment.
(f) The current rates of pay and conditions of employment in
Klinge compare more than favourably with other
employments within the area.
RECOMMENDATION:
5. The Court considers that the terms offered in direct
negotiation are fair and reasonable and recommends that they be
accepted.
~
Signed on behalf of the Labour Court
John M. Horgan
____30th____October, 1986. _____________________
M. D. / M. F. Chairman