Labour Court Database __________________________________________________________________________________ File Number: CD86926 Case Number: LCR11125 Section / Act: S67 Parties: N.E.CATTLE BREEDING SOCIETY - and - ITGWU |
Claims, on behalf of 47 inseminators and 26 clerical workers, under the 26th wage round, for:- (a) a 10% wage increase (b) a 10% increase in call allowances (c) the clerical wage scale to relate to actual years of service.
Recommendation:
13. Having considered the submissions made by the parties the
Court recommends as follows:
(a) Wage increase:
The Court recommends that the Society's offer be
amended to provide for an increase of 2.50% with effect
from the 1st May 1986, with a further increase of 2%
payable 1st February, 1987 in respect of an agreement
to terminate 30th June, 1987.
(b) Increase in Call Allowances:
The Court does not recommend concession of the Union's
claim. The Court further notes the Society's offer to
provide transport and suggests that it be examined
further by the parties.
(c) Clerical Scale:
The Court recommends that increments should be
reckonable from the commencement of full time service
with the Society.
Division: Mr O'Connell Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD86926 THE LABOUR COURT LCR11125
CC861924 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11125
Parties: NORTH EASTERN CATTLE BREEDING SOCIETY LIMITED
(Represented by the Irish Co-Operative Society Limited)
and
IRISH TRANSPORT AND GENERAL WORKERS UNION
Subject:
1. Claims, on behalf of 47 inseminators and 26 clerical workers,
under the 26th wage round, for:-
(a) a 10% wage increase
(b) a 10% increase in call allowances
(c) the clerical wage scale to relate to actual years of
service.
General Background:
2. The Society is an Agricultural co-operative which operates in
the counties of Cavan, Monaghan, Longford and in parts of Meath
and Leitrim. Its head office is at Ballyhaise, Co Cavan and six
sub-stations are situated throughout the operational area. Each
sub-station is manned by between one and three clerks.
Inseminators are based at a sub-station and operate in the area
related to their base.
3. The 25th wage round expired for the workers on 30th April,
1986. On 11th April, 1986 the Union on behalf of the workers
lodged the following 26th wage round claims on the Society;
(a) a 10% wage increase
(b) a 10% increase in call allowances
(c) a #10 increase in Sunday Pay
(d) the clerical wage scale to relate to actual years of
service.
In June and July 1986 local negotiations took place on the claim.
The Society requested a deferral of the claims until early 1987.
This was rejected by the Union. Subsequently the Union deferred
the claim for an increase in Sunday Pay. No agreement was reached
through local negotiations and on 30th July, 1986 the matter was
referred to the conciliation service of the Labour Court. A
conciliation conference was held on 19th September, 1986 at which
the Society made an offer of a 2% wage increase from 1st January,
1987 to 30th April, 1987 and also offered to provide a car to any
inseminator who required one. This offer was rejected by the
Union. At a second conciliation conference, which was held on
16th October, 1986, the Society improved its offer by making the
2% wage increase effective from 1st May, 1986. The Union rejected
this offer. No agreement was reached and on 25th November, 1986
the case was referred to the Court for investigation and
recommendation. A Labour Court hearing was held on 11th February,
1987 in Monaghan - a hearing arranged for an earlier date was
postponed due to adverse weather conditions.
Claim (a) a 10% wage increase:
Background:
4. The present annual pay scales of the workers range from #6,224
to #8,366 for Inseminators and #5,689 to #7,831 for Clerks. Both
pay scales have 15 points, however, workers are employed initially
on a part-time seasonal basis and accordingly remain on point 1 of
the scale for five seasons.
Union's arguments:
5. (i) The Society is unreasonable in expecting the workers to
accept a wage increase which would be just a third of
the value of recorded settlements in this wage round to
date. Under the 25th wage round the workers obtained
an increase of 5% over twelve months which was 2.5%
below the average increase for that wage round. The
workers are expected to make sacrifices each year with
the apparent intention of providing farmers with a form
of subvention on artificial insemination. It is clear
from the present wage scales that the workers cannot
afford to subsidise others.
(ii) The Society states that it is unable to improve its
offer due mainly to a reduction in the number of
inseminations over a three year period. However, in
doing its survey the Society carried out that
comparison with 1981 with which was an exceptionally
good year. Even if it is accepted that there was a
reduction in the number of inseminations the projected
figure for 1986 is still well above the accepted
breakeven point.
(iii) The Society's fee for insemination is an average of #1
less than other Societies operating in adjoining
regions and there is no repeat charge made by the
Society. It is unacceptable that the Society should
keep farming costs down at the expense of the staff who
provide the service. There has been no increase in the
fee for two years. Such an increase would help the
Society's finances.
(iv) It is reasonable to expect that the Society should meet
its responsibilities to the staff and grant them a 6%
wage increase over twelve months.
Company's arguments:
6. (a) The Society has to cope with increasing costs while
faced with a declining income situation. Since 1980
the increase in payroll expenses has exceeded the
Consumer Price Index. In 1984 pay roll and
inseminators expenses accounted for 75% of the
Society's income. In 1985 those two items had
increased to 80% of the Society's income. At that rate
of increase, these costs would represent 100% of income
by 1989.
(b) The Society has honoured all pay rounds over the years.
In addition, the staff obtained an increase over and
above the terms of the 1984 pay round due to the
implementation of the revised pay scales.
(c) The Society offer of a 2% wage increase from 1st May,
1986 represents a further gain over inflation for the
workers.
Claim (b) a 10% increase in call allowances:
Background:
7. The present call allowance for inseminators is as follows:-
1 - 10 calls - #1.45 nett
11 - 20 " - #1.52 "
over " - #2.00 "
The allowances were last changed in 1983 when they were increased
by 17%.
Union's arguments:
8. (i) The increase of 17% in 1983 was related to a 14%
increase in motoring costs from the previous year. In
the four years since there has been a 13% increase in
the running cost of a 1000 - 1200 cc saloon car
reckoned on a mileage of 10,000 miles per year. That
results in a depreciation of the value of allowances in
the same period of 10%.
(ii) The fact that the call allowances are paid tax free is
no great concession to the workers. This method of
payment is used by other Societies. It is also more
beneficial to the Society than other methods of payment
which would result in the Society becoming liable for
PRSI payments.
(iii) There may be a greater distance between calls in an
area as the number of calls reduces. The inseminator
will accordingly clock up a greater mileage and cost to
himself for a smaller return through the call
allowance.
(iv) At a Court hearing in November, 1985 which concerned
this claim the Society argued that the inseminators
were well paid because the average call allowance paid
to inseminators was #8000 whereas it was #7000 in
southern counties. The cow population in this region
is more spread out than in southern counties therefore
the costs increased by the inseminator are much
greater.
(v) Motoring costs are further increased in the region by
the poor state of the roads.
(vi) The nature of the inseminators' business and mileage
adversely affect the trade-in value of their cars.
Company's arguments:
9. (a) The last increase was substantially in excess of the
then inflation rate. Revised pay scales were agreed in
1984 and a condition of their concession was that the
call allowance would remain frozen for a number of
years.
(b) This claim was before the Court last year and the Court
recommended in favour of the Society. At that time
substantial evidence was produced to the Court to show
that the earnings of the staff involved were well in
line with, indeed, if not ahead of, those in other A.I.
stations. It was also demonstrated that the allowances
adequately compensated for the cost of operating a car.
This position has not altered.
(c) The 5% basic pay increase granted by the Court last
year was well in line with increases given in other
artificial insemination (A.I.) Stations. While the
increase afforded in the Society applied only to basic
pay, it applied for the full twelve months of the
agreement. Increases given in other A.I. stations were
phased in.
(d) The cost of motoring has reduced, as figures published
by the Automobile Association adequately demonstrate.
Claim (c): the clerical wage scale to relate to actual years of
service:
Background:
10 The wage scales were reduced to fifteen points as a result of
LCR No. 10301. In practice a worker is required to remain on
point 1 of the scale for the first five years of employment. The
Union is claiming that progression on the wage scale should be
related to actual years of service.
Union's arguments:
11. (i) The Society's point that all staff commence employment
on a seasonal/temporary basis is not correct for the
clerical workers. All the clerical staff have been
employed full-time by the Society since they started.
(ii) There are now four clerks with four years service still
on point 1 of the scale, this is the same rate as a
clerk who commenced employment in early 1986 with no
previous experience. There can be no justification for
continuing this unfair practice which is causing a drop
in morale among the workers concerned.
Company's arguments:
12. (a) This claim was also before the Court last year and the
Court in its recommendation did not recommend
concession. The pay scales were agreed as recently as
1984 and the Society can see no reason for changing the
agreement at this point in time. The requirements to
remain on point 1 of the scale for 5 years is due to
the nature of the work which is basically seasonal and
will continue to be so for the foreseeable future.
RECOMMENDATION:
13. Having considered the submissions made by the parties the
Court recommends as follows:
(a) Wage increase:
The Court recommends that the Society's offer be
amended to provide for an increase of 2.50% with effect
from the 1st May 1986, with a further increase of 2%
payable 1st February, 1987 in respect of an agreement
to terminate 30th June, 1987.
(b) Increase in Call Allowances:
The Court does not recommend concession of the Union's
claim. The Court further notes the Society's offer to
provide transport and suggests that it be examined
further by the parties.
(c) Clerical Scale:
The Court recommends that increments should be
reckonable from the commencement of full time service
with the Society.
~
Signed on behalf of the Labour Court
John O'Connell
22nd April, 1987 ---------------
T O'M/U.S. Deputy Chairman