Labour Court Database __________________________________________________________________________________ File Number: CD87153 Case Number: LCR11116 Section / Act: S67 Parties: HALAL MEAT PACKERS - and - ITGWU |
Claims under the 26th wage round for (1) 15% increase in basic pay for 12 month duration and (2) upward adjustment in the basic rates to keep in line with the norm in the industry.
Recommendation:
5. The Court having considered the submissions from both parties
recommends the following increases in respect of the 26th wage
round pay claim.
3 months pay pause,
3% for 6 months and a further 3% for 6 months.
The Court does not recommend concession of the claim for out of
line payments.
Division: Ms Owens Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD87153 THE LABOUR COURT LCR11116
CC861995 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11116
Parties: HALAL MEAT PACKERS LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claims under the 26th wage round for (1) 15% increase in basic
pay for 12 month duration and (2) upward adjustment in the basic
rates to keep in line with the norm in the industry.
Background:
2. The Company which is engaged in meat processing employs
approximately 350 workers during the peak season at its plant in
Ballyhaunis, Co. Mayo. The 25th wage round expired on 31st July,
1986. In October, 1986 the Union lodged the above mentioned
claims with the Company under the 26th wage round effective from
the 1st August, 1986. A meeting between the parties was held on
1st December, 1986 at which the Company made the following offer:
An 18 month agreement to take effect from 1st August,
1986. A pay pause for 6 months to be followed by a 2%
increase from 1st February, 1987 and 2% from 1st
August, 1987.
This offer was rejected by the Union and the matter was referred
to the conciliation service of the Labour Court on 1st December,
1986. A conciliation conference was held on 17th February, 1987.
As no agreement was reached both parties agreed to refer the issue
to the Labour Court for investigation and recommendation. A
Labour Court hearing was held in Castlebar on 1st April, 1987.
Union's arguments:
3. (a) The Union indicated its willingness to negotiate and
that claims (1) and (2) could be satisfied within the
figure of 15%. The rates of pay for the industry
clearly show the Company's rate is at the bottom of the
table (details supplied to the Court). The Union
believes they are financially in a position to be at
the top.
(b) The 26th wage round increases in the fresh meat
industry have been well in line with the average
increase for that wage round (details supplied to the
Court). These settlements are in companies which
already pay basic rates higher than the Company.
(c) The Company is by far the largest business concern of
all the fresh meat businesses in the country, and has a
considerable slice of both the beef and lamb business.
Because of this the Union is in no doubt as to the
Company's capacity to pay an increase at least in line
with those of its smaller competitors.
Company's arguments:
4. (i) The Company, in common with other companies in the
industry has experienced severe market difficulties
over the past year. As it is engaged primarily in the
export market it has had to reduce it's prices to
retain its markets against severe cost-cutting amongst
its competitors.
(ii) If a wage increase is granted higher than its
competitors it will lead to a further erosion of it's
competitive position and will inevitably raise
questions about future employment levels in Ballyhaunis
as well as the cost per animal slaughtered at other
plants within the group.
(iii) Regarding the claim for an upward adjustment in basic
rates the Company contend that their rates payable are
above average applicable in the industry (details
supplied to the Court). Furthermore, a bonus scheme
operates within the Company which given the average
slaughter level would pay each worker a bonus of #28 on
average.
(iv) The Company's location in the West of Ireland means
that their transport costs are higher than those of
their competitors. In addition as a comparatively new
Company in Ballyhaunis a substantial investment in
production has been made.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends the following increases in respect of the 26th wage
round pay claim.
3 months pay pause,
3% for 6 months and a further 3% for 6 months.
The Court does not recommend concession of the claim for out of
line payments.
~
Signed on behalf of the Labour Court
Evelyn Owens
________________________
Deputy Chairman.
9th April, 1987.
M.D./J.C.