Labour Court Database __________________________________________________________________________________ File Number: CD87117 Case Number: LCR11138 Section / Act: S67 Parties: BURLINGTON SPORTSWEAR LTD - and - ITGWU |
Claim, by the Union, on behalf of approximately 200 workers for a wage increase under the 26th wage round.
Recommendation:
5. The Court, having considered the submissions from both
parties, recommends an increase of 6% for a 14 month period in
respect of the 26th round claim.
Division: Ms Owens Mr Collins Mr Walsh
Text of Document__________________________________________________________________
CD87117 THE LABOUR COURT LCR11138
CC87162 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11138
Parties: BURLINGTON SPORTSWEAR FABRICS LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, by the Union, on behalf of approximately 200 workers
for a wage increase under the 26th wage round.
Background:
2. Prior to the expiry of the 25th wage round on 31st December,
1986, the Union served a 26th round claim on the Company,
consisting of 4 elements:
- a 10% increase in basic rates for 12 months,
- an adjustment for the lower paid,
- establishment of an additional grade in the wage
schedule,
- a commitment on the introduction of a pension scheme at
a later date.
The Company responded to the claims as follows:
- In view of the current inflation level and of the
settlement levels prevailing in the textile industry,
the Company considered the claim of 10% for 12 months
as exorbitant.
- The Company would not become involved in extra payment
for the lower paid, unless the overall agreed
settlement was weighted in that direction.
- The Company was not prepared to tamper with a well
established and accepted grading structure. However,
if the number of points assigned to a job increased
under the job evaluation system, then the Company would
examine the question of a new grade.
- A pension scheme would be costly to introduce and would
only be done in the context of the overall cost of the
26th round.
The Union accepted the Company's position in relation to the
establishment of an additional grade and stated that the pension
scheme was something that the Union would like to see introduced
but that it was not an essential element in this wage round. The
Union said it's objective was on basic pay. The Company, in
response, proposed a basic pay increase of 5% for 18 months with
no pay pause. After lengthy discussions between the parties the
Union altered it's claim to 6% for 12 months. The Company felt
that it could not meet this claim and offered 5% for 15 months,
which it regarded as being in line with settlements made elsewhere
in the textile industry. Since no further progress could be made
at local negotiations, it was agreed to refer the matter to the
conciliation service of the Labour Court.
A conciliation conference took place on the 18th February, 1987.
As no agreement was reached, the matter was referred, on 19th
February, 1987, to the Labour Court for investigation and
recommendation. A Court hearing took place on 24th March, 1987,
in Tullamore, Co. Offaly.
Union's arguments:
3. (a) The workers in the Tullamore plant have long held the
view that management do not fully appreciate their
efforts. In a number of significant areas, such as
earnings opportunities and premiums, the Tullamore
workers are at a distinct disadvantage relative to
other locations.
(b) In May, 1983, the Company instituted a major
capitalisation programme at Tullamore, which
necessitated the loss of approximately 100 jobs. In
the face of this situation the workers have been
amenable to production and other changes in an effort
to obtain and improve upon viability and efficiency.
The workers and management have made strenuous efforts
in this regard, resulting in an upturn in the Tullamore
operation's fortunes.
(c) Management have pointed to "consistent and satisfactory
profits" and stated a firm conviction that the "corner
has now been turned." This is seen in real terms by
the 7% increase in over-time requirements, increased
staffing and the introduction of new highly automated
machinery.
(d) The wage rates of the workers concerned cannot be
deemed prohibitive given the type of skilled work
required and the time schedules involve (details
provided to the Court). As a result the Union believes
it's claim is justified.
Company's arguments:
4. (i) The Company has established 3 objectives for the
currency of the 26th round:
- Maintenance of employment.
- Cost containment, including a moderate pay
settlement.
- Provision for future investment.
These measures are essential to protect the viability
of the operation.
(ii) The upturn in results experienced in 1986, was due in
large to a downward turn in raw material costs, which
has now been halted. Indeed, raw material prices are
now beginning to climb again.
(iii) The settlement level for the Irish textile industry has
been in the order of 5% for 12 months. The Company's
main competitors in Europe have settled pay agreements
in the order of 3% to 4% for 12 months. In addition,
they are also expanding production which will put
additional pressure on prices for the year 1987/88.
These factors, together with the higher energy and
transport costs in Ireland, will mean increased
competition in the market.
(iv) In the context of a reasonably good year, following on
a number of years of unsatisfactory results, the
Company is concerned that a high pay increase would
jeopardise the operation. The Company's aim is to
stabilise it's situation, both in the market and
financial areas and thereby secure it's future and that
of the workers. Therefore, it is essential that a
correct wage round settlement course is followed, in
order to secure that future.
RECOMMENDATION:
5. The Court, having considered the submissions from both
parties, recommends an increase of 6% for a 14 month period in
respect of the 26th round claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
_____________________________
Deputy Chairman.
26th April, 1987.
B.O'N./J.C.