Labour Court Database __________________________________________________________________________________ File Number: CD86972 Case Number: LCR11056 Section / Act: S67 Parties: LONGFORD TEXTILES - and - ITGWU |
Claim, on behalf of approximately 100 general operatives for an increase in pay under the 26th wage round.
Recommendation:
5. The Court, having considered the submissions made by the
parties and noting the trading position of the Company, recommends
as follows in relation to the 26th round wage claim:
An 18 month Agreement providing for
(a) a 6 months pay pause,
(b) an increase of 3% for 9 months,
and
(c) a 2% increase for 3 months.
Division: Mr Fitzgerald Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD86972 THE LABOUR COURT LCR11056
CC861668 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11056
PARTIES: LONGFORD TEXTILES LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, on behalf of approximately 100 general operatives for
an increase in pay under the 26th wage round.
Background:
2. The Company is engaged in the processing of cotton for the
textile industry and is part of the Barbour Cambell Textile
Group owned by Hanson Trust plc and Barbour Cambell Threads
Limited. The 25th wage round expired on 31st August, 1986. The
Union served a claim for a 10% increase in pay under the 26th
round, over a twelve month period, with no pay pause. The Company
rejected the claim and the matter was referred, on 9th October,
1986, to the conciliation service of the Labour Court. A
conciliation conference took place on 11th November, 1986, and
resumed on 3rd December, 1986. At the resumed conference the
Company proposed a nine month pay pause followed by a 3% increase
for nine months and a 2% increase for 6 months. The Union
rejected this offer and the matter was referred to a full hearing
of the Labour Court. The hearing took place on 17th February,
1987, in Longford.
Union's arguments:
3. (i) Over a period of years there has been investment on
new plant and equipment which has brought the Company
to a high level of productivity, with the total
co-operation of the workforce. When account is taken
of the efficiencies of production brought about by the
workers, the current claim is considered to be fair
and reasonable.
(ii) The current claim takes into consideration the average
increase under the 26th round (6.1% over 12 months)
and the need to maintain living standards.
Furthermore, this is a low pay industry.
Company's arguments:
4. (a) The Company is facing extremely serious problems. No
increase in pay can be justified for a considerable
period due to the Company's financial position. In the
medium to long term the Company must find additional
new markets. The immediate problem which must be
tackled is the loss being incurred at the plant. The
Company has made efforts on various fronts to contain
costs. One of the major costs is that of salaries and
social welfare contributions.
(b) The Company needs a period of twelve months where no
wage increase will have to be paid. If during that
period the sterling/punt relationship reverts to a more
favourable one from the Company's point of view and
remains there for a reasonable period there may be
scope to discuss some increase.
(c) Barbour Cambell Threads provides valuable business for
the Company but this cannot continue where Barbour
Cambell can secure product at much lower prices on the
open market. The Company must therefore contain any
increase in costs which could further jeopardise this
business.
(d) The overall remuneration package in Longford Textiles
is a good one given that employees enjoy bonus earnings
in addition to basic pay plus shift premia. Average
gross pay is approximately #200 per week.
(e) The Company is presenting a case of inability to pay.
This has been a critical factor in determining the
cases before the Labour Court. (Financial information
was supplied to the Court).
RECOMMENDATION:
5. The Court, having considered the submissions made by the
parties and noting the trading position of the Company, recommends
as follows in relation to the 26th round wage claim:
An 18 month Agreement providing for
(a) a 6 months pay pause,
(b) an increase of 3% for 9 months,
and
(c) a 2% increase for 3 months.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
--------------------
Deputy Chairman.
16th April, 1987.
A.K./M.F.