Labour Court Database __________________________________________________________________________________ File Number: CD87167 Case Number: LCR11130 Section / Act: S67 Parties: POWER IMPORT & WHOLESALE LTD - and - FWUI |
Claim by the Union for: (i) Application of Quinnsworth head office clerical scales to Power Import and Wholesale staff. (ii) 26th round wage increase.
Recommendation:
5. The Court recommends that the Company introduce a similar
grade structure to that operating in Quinnsworth and apply the
grade to the workers in this case to which it is appropriate.
Division: Mr O'Connell Mr Collins Mr O'Murchu
Text of Document__________________________________________________________________
CD87167 THE LABOUR COURT LCR11130
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11130
Parties: POWER IMPORT & WHOLESALE LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
FEDERATED WORKERS UNION OF IRELAND
Subject:
1. Claim by the Union for:
(i) Application of Quinnsworth head office clerical scales
to Power Import and Wholesale staff.
(ii) 26th round wage increase.
Background:
2. The Company is in the import/warehouse distribution business,
and was set up by the Quinnsworth Group to service its stores
throughout the country. 15 workers are involved in the claim. On
the expiry of the 25th round on the 1st August, 1986, the Union
submitted a claim for an increase in pay. On October 16, the
Union specified its claim to be based on (a) a general pay round
adjustment, and (b) the introduction of a grading structure into
the clerical area. Quinnsworth head office operate a two grade
scale. The Union contends that the lower of these scales is
identical to the pay scale in the Company at each and every point.
The Company contends that since it trades in the import and
wholesale distribution sector, valid comparisons can only be drawn
with enterprises trading in this sector. It rejects the
contention that Quinnsworth head office is a valid comparator. On
13th November, 1986, a meeting took place between the parties at
local level, at which the Company made the following offer:
3% for 7 months from 1st August, 1986.
3% for 6 months from 1/3/87.
The offer had the provision that there be no further cost
increasing claims for the duration of the agreement. The offer
was rejected by the Union on the grounds that its acceptance would
prevent the Union from pursuing the grade claim. On 9th December,
1986, the matter was referred to the conciliation service of the
Labour Court. A conciliation conference took place on 20th
February, 1987 but no agreement was reached. On 5th March, 1987,
the matter was referred to the Labour Court for investigation and
recommendation. A Court hearing took place on 2nd April, 1987.
Union's arguments:
3. (i) The relationship between Powers Import and Wholesale
Ltd (P.I.W.) and Quinnsworth is well established. The
rates of pay are identical and have been adjusted
together for the past ten years. One employee
transferred from Quinnsworth head office to P.I.W. and
is paid on the higher Quinnsworth scale to date.
(ii) The use of scales to differentiate between the pay
levels for employees engaged in work with different
levels of responsibility is almost universal and
applies in offices of all sizes. There is no reason
why P.I.W. should in any way be different from the
general trend in this issue.
(iii) The present system of a single scale irrespective of
job responsibility is bizzare. Under this system a low
level office job has exactly the same pay potential as
the most senior office job. To say the least this is
most un-common and a disincentive to employees.
(iv) The difference in value between the pay scales is quite
small. The Company is a tremendously successful
company and could well afford to pay the increases that
would result from concession of this claim. The Union
rejected the Company's offer on pay, because it failed
to address the grading issue. Concession of the
grading claim would inevitably result in the acceptance
of the pay offer as it would maintain parity with
head office.
Company's arguments:
4. (a) The Company trades in the import and wholesale
distribution sector. Consequently, valid comparisons
can only be drawn with other companies trading in this
sector. The Company contends that its rates of pay and
conditions of employment compare favourably with
competing companies.
(b) The fact that Power Import & Wholesale is a wholly
owned subsidiary of Power Supermarkets Ltd., does not
justify payment of rates of pay which apply in
Quinnsworth head office. The Court will be aware that
throughout the country, rates of pay which apply to
sales assistants and other grades within Quinnsworth
stores vary considerably despite the acceptance by both
employer and trade unions that the job content in each
stores is identical. It has been long accepted by both
sides that the competitive position of each stores in
the area in which it is trading is a crucial factor in
determining wage rates. The Company believe that the
same principle holds for Power Imports and Wholesale
Ltd., and that therefore, the comparison with head
office clerical rates is not valid.
(c) The Union has represented the clerical staff in the
Company for many years. The existing agreed rates of
pay were introduced with the agreement of the Union at
a time when the present Quinnsworth head office
structure was in existence. Clearly, the Union must
have accepted at that time, that Power Imports and
Wholesale Ltd., was a separate entity to Quinnsworth.
There have been no significant changes in the business
of either organisation which has altered the
relationship between the two organisations. In light
of these considerations, the Company believes that no
adjustment should be made to the clerical scales of pay
in the Company with the exception of the application of
the 26th Round.
RECOMMENDATION:
5. The Court recommends that the Company introduce a similar
grade structure to that operating in Quinnsworth and apply the
grade to the workers in this case to which it is appropriate.
~
Signed on behalf of the Labour Court
John O'Connell
____________________________
23rd April, 1987
P.F./J.C. Deputy Chairman