Labour Court Database __________________________________________________________________________________ File Number: CD87164 Case Number: LCR11113 Section / Act: S67 Parties: LONGFORD TEXTILES - and - ITGWU |
Claims, on behalf of seven supervisory and clerical employees under the 26th wage round as follows: (a) 10% increase in pay, (b) introduction of service leave, (c) V.H.I. for all staff members, (d) overtime for stock taking, (e) payment of increments.
Recommendation:
10. 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.
The Court also recommends that, subject to satisfactory
performance, all the increments which are due to the claimants
should be paid.
The Court does not recommend concession of the other claims.
Division: Mr Fitzgerald Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD87164 THE LABOUR COURT LCR 11113
CC8761 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11113
Parties: LONGFORD TEXTILES LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claims, on behalf of seven supervisory and clerical employees
under the 26th wage round as follows:
(a) 10% increase in pay,
(b) introduction of service leave,
(c) V.H.I. for all staff members,
(d) overtime for stock taking,
(e) payment of increments.
General background:
2. The Company is engaged in the processing of cotton for the
textile industry and is part of the Barbour Campbell Textile Group
owned by Hanson Trust plc and Barbour Campbell Threads Limited.
The 25th wage round expired on 31st August, 1986 and claims as
outlined above were served on the Company by the Union, under the
26th round. No agreement being reached, the matters were referred
to the conciliation service of the Labour Court on 31st December,
1986. A conciliation conference took place on 25th February,
1987, but again, no agreement was reached and the matters were
referred to a full hearing of the Labour Court. The hearing took
place on 13th March, 1987.
Claim (a) - Pay
3. The current salary scales are shown in Appendix I. The Union
sought a 10% pay increase. The following offer was made to the
general workers:
Nine months' pay pause.
3% for nine months.
2% for six months.
24 month agreement.
Claim (b) - Leave
4. Three members of management have twenty five days annual leave
while supervisors and clerical staff have twenty days. Only
management have an entitlement to service leave and the Union is
seeking the introduction of a service leave scheme at least for
supervisory staff.
Claim (c) - V.H.I. for all staff members
5. Voluntary Health Insurance is paid by the Company for
management and supervisory staff (twelve in total). The Union is
seeking the extension of this cover to the four clerical staff.
Claim (d) - Overtime for stocktaking
6. Formerly, stocktaking took place on a quarterly basis but is
now being carried out on a monthly basis. It has been carried out
by the supervisors and one clerk outside normal working hours
without additional payment and takes approximately three hours.
Due to the increased frequency of the stocktaking the Union
contends that it should now be carried out on an overtime basis.
Claim (e) - Payment of increments
7. There are separate salary scales for clerical and supervisory
staff (see Appendix 1). In October, 1986 a number of both
supervisory and clerical staff were due an incremental increase
which was not paid. The Company contended that incremental
increases were subject to ability to pay and a merit review. The
Union rejects the right of the Company to withhold increments.
Union's arguments:
8. (i) Wages in the Company are currently low and payment of
an increase at least in line with the norm for the 26th
Round of 6% over twelve months is essential if living
standards are to be maintained. The Union does not
accept that the Company is unable to pay such an
increase. To a large extent the price received for the
products and the ability to generate profits is
dictated by the Group.
(ii) The Union considers that supervisors should be entitled
to service leave in the same manner as members of
management.
(iii) The Union considers that V.H.I. cover should be
extended to the four clerical employees since it
applies to supervisory and managerial staff some of
whom have very short service.
(iv) Liability for stocktaking has increased from four times
per year to 13/14 times per year. The Union seeks the
payment of overtime for stocktaking work in view of
this substantial increase.
(v) Failure to pay incremental increases discriminates
between those on the maximum of the scale and those
progressing to the maximum. It could also be seen as a
clear attempt to cut wages for a section of the staff.
Company's arguments:
9. (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
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 Campbell Threads provides valuable business for
the Company but this cannot continue where Barbour
Campbell 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) Concession of the claim relating to service leave would
lead to cost increases and therefore cannot be
conceded. It would also lead to knock-on effects
amongst general operatives.
(e) V.H.I. is paid for some senior staff members and for
those in supervisory grades. The extension of the
existing arrangements would be of a cost increasing
nature.
(f) Stocktaking is a requirement of the contracts of
employment of the staff concerned and their
remunerative package is designed to take account of
this requirement. Any concession of this claim would
also be of a cost increasing nature and cannot be
considered.
(g) The Company has previously advised staff by letter that
incremental increases would be paid, where applicable,
subject to ability to pay and a merit review. This is
considered to be reasonable. The Union's claim for
automatic increments represents an addition to any
desired increase in basic rates.
(h) The Company is presenting a case of inability to pay.
This has been a critical factor in determining cases
before the Labour Court. (Financial information was
supplied to the Court).
RECOMMENDATION:
10. 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.
The Court also recommends that, subject to satisfactory
performance, all the increments which are due to the claimants
should be paid.
The Court does not recommend concession of the other claims.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
____________________________
Deputy Chairman
16th April, 1987
A.K./J.C.
APPENDIX I
LONGFORD TEXTILES LTD
SALARY SCALES
_______________________________________________________
| STEPS | CLERICAL | SUPERVISORS |
|_______________|__________________|__________________|
| START | 5509 | 8511 |
| | | |
| 1 | 6078 | 8754 |
| | | |
| 2 | 6242 | 8999 |
| | | |
| 3 | 6411 | 9239 |
| | | |
| 4 | 6579 | 9480 |
| | | |
| 5 | 6745 | 9724 |
| | | |
| 6 | 6913 | 9966 |
| | | |
| 7 | 7080 | 10209 |
| | | |
| 8 | 7246 | 10455 |
| | | |
| 9 | 7414 | 10697 |
| | | |
| 10 | 7581 | 10942 |
| | | |
| 11 | 7748 | 11183 |
| | | |
| 12 | 7917 | 11426 |
|_______________|__________________|__________________|