Labour Court Database __________________________________________________________________________________ File Number: CD87427 Case Number: LCR11361 Section / Act: S67 Parties: NAVAN CARPETS LTD - and - ITGWU |
Claim for an increase of 6% on pay rates for 38 white collar workers under the 26th wage round.
Recommendation:
5. The Court having considered the submissions from both parties
recommends as follows in relation to the 26th Wage Round claim.
2.50% increase from 1st April, 1987 and a further 2.50%
increase from 1st November, 1987.
Agreement to terminate on 31st March, 1988.
Division: Ms Owens Mr Shiel Mr O'Murchu
Text of Document__________________________________________________________________
CD87427 THE LABOUR COURT LCR11361
CC87496 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11361
Parties: NAVAN CARPETS LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim for an increase of 6% on pay rates for 38 white collar
workers under the 26th wage round.
Background:
2. The 25th wage round expired on 31st March, 1987. The Union
lodged the above mentioned claim with the Company. Agreement
effective from 1st April, 1987 and for a twelve month duration.
In response the Company initially sought a 3 reduction in wages for twelve mont
increasing claims, industrial peace procedures and co-operation
with the introduction of new technology. This was not acceptable
to the Union and the matter was referred to the conciliation
service of the Labour Court on 20th March, 1987. A conciliation
conference was held on 20th May, 1987. As no agreement was
possible both parties agreed to a referral to the Labour Court for
investigation and recommendation. A Labour Court hearing was held
in Navan on 28th July, 1987.
Union's arguments:
3. (a) It is acknowledged that the Company has had a very poor
performance record over recent years arising from a
variety of factors, some internal some external.
Serious losses have been incurred and the survival of
the Company has only been ensured by the outstanding
contribution of the workforce and financial assistance
from Foir Teo. Recently the Company was taken over by
the U.K. Group Coats Viyella. It is confidently
expected that with their expertise and finance matching
with the efforts of the workers the future looks better
than at any stage in recent years.
(b) However, even before the takeover the Company had gone
a long way to recovery and was expected to break even
in the not too distant future. This improvement
reflects the sacrifices already made by the workers in
terms of their reduced numbers, increased
productivity/flexibility and the loss of wages under
the 24th and 25th wage rounds under which the workers
received less in amounts and duration than most other
workers. The 25th round in particular gave the Company
a 21 month agreement for 6.50% while the norm for the
round was 8.56% for 13.5 months. Not only did the
workers loose under the 25th round itself but the
operative date of all subsequent rounds will be up to
nine (9) months later than most other workers. Most
other workers are currently negotiating their 27th
round. This places the workers at a considerable
disadvantage in competing for the necessities of life
apart from the demoralising effect it also has.
Company's arguments:
4. (i) The Company is at present in a serious loss making
position and has been for a number of years (details
supplied to the Court). One of the crucial aspects of
the Company's survival plans in reversing this loss
making situation is the ongoing implementation of a
cost reduction programme. The Company is endeavouring
to improve its performance by pursuing additional
improvements in areas from increased sales targets to
improved materials utilisation. It is imperative that
costs are not permitted to increase in any area of
operation where direct control can be applied if the
Company is to return to profitability.
(ii) The Company is heavily dependent on the U.K. and U.S.A.
markets in order to maintain current levels of
production. Despite extensive rationalisation
undertaken in these market areas over the past year,
the Company is experiencing very severe competition,
and is finding it increasingly difficult to remain
competitive. This problem is being compounded by the
effect of the exchange rate on both these markets
(details supplied to the Court).
(iii) The Company has to survive on the resources available
to it, and given the present loss making and cash flow
difficulties the Company is experiencing, it would be
irresponsible of it to jeopardise it's future by
increasing wage costs, which already amount to
#3,510,000 per annum. The Company clearly cannot
afford to support additional costs at present, and
concession of any wage claim would equate to job
losses; which would be undesirable by Company and
workers.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends as follows in relation to the 26th Wage Round claim.
2.50% increase from 1st April, 1987 and a further 2.50%
increase from 1st November, 1987.
Agreement to terminate on 31st March, 1988.
~
Signed on behalf of the Labour Court
Evelyn Owens
__________________________
Deputy Chairman
21st August, 1987
M.D./J.C.