Labour Court Database __________________________________________________________________________________ File Number: CD87456 Case Number: LCR11380 Section / Act: S67 Parties: MIDLAND BUTTER & BACON LTD. - and - ITGWU |
Claim, by the Union on behalf of approximately 35 factory operatives under the 26th wage round.
Recommendation:
5. The Court, having considered the submissions made by the
parties, recommends a 26th wage round agreement as follows:-
3% increase effective from 1st January, 1987, and
3% increase effective from 1st September, 1987.
The agreement to conclude on 31st March, 1988.
Division: Mr Fitzgerald Mr Heffernan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87456 THE LABOUR COURT LCR11380
CC87284 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11380
PARTIES: MIDLAND BUTTER AND BACON COMPANY LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claim, by the Union on behalf of approximately 35 factory
operatives under the 26th wage round.
BACKGROUND:
2. The 25th wage round expired on 31st December, 1986, and on
18th February, 1986, the Union lodged a claim for a 10% increase
in basic rates of pay over 12 months. The Company offered a 3%
increase over 18 months. This was rejected by the Union who put
forward a 'bottom line' of 7% over 12 months. The Company then
proposed an amended increase of 3% for 12 months, followed by a 2%
increase for a period of 6 months. This amended offer was
rejected by the Union. On 20th February, 1987, the matter was
referred to the conciliation service of the Labour Court. At a
conciliation conference on 5th May, 1987, (the Company was
unavailable at any earlier date), the Company put a final offer to
the Union as follows -
3% increase effective from 1st January, 1987, (for 9 months),
2% increase effective from 1st October, 1987, (for 7 months),
Agreement to terminate on 30th April, 1988.
This proposal was rejected by the Union on the basis that the
current rates of pay are low. The current rates are:-
Skilled #138.43 per week,
Semi-Skilled #134.42 per week, and
Unskilled #128.11 per week.
On 8th June, 1987, the issue was referred to the Labour Court for
investigation and recommendation. A Court hearing took place, in
Portlaoise, on 11th August, 1987.
Union's arguments:
3. (a) In recent years the industry has been undergoing total
re-organisation and rationalisation, resulting in
higher productivity, standards and efficiency. The
outlook for the bacon industry is optimistic and this
is reflected in the wealth of available investments
which are currently taking place. This capital
investment can only inspire confidence and stability in
the industry. The owners of the Company are involved
in this investment in the industry. The Company's
staff are anxious to co-operate with and participate in
these developments and have expressed these sentiments
to management.
(b) The Union had to reject the Company's offer because it
was totally out of line with settlements, both locally
and nationally in the industry. Added to this, the
workers, given the high rate of skill required, receive
low rates of pay compared with those applying in many
other companies, (details supplied to the Court).
(c) The Company's attitude has been niggardly, given the
co-operation tendered and the level of commitment
expected by the Company. The Company's owners are
initiating structural changes which involve major
financial investment. The Union believes that an
investment, at a relatively low level, in providing its
workforce with a living wage will have equal if not
greater returns.
Company's arguments:
4. (i) The industry has been facing and continues to face
extreme difficulties at the present time.
Significant rationalisation, involving redundancies,
has taken place in a number of companies, especially
over the last 12 months.
(ii) Last year there was a drop in the selling price of
bacon as a result of a decrease in the price of pigs.
In recent months the price of pigs has risen,
however, the selling price of bacon has stayed down.
Thus the Company's margins on sales have been
eliminated and the Company is trading at a loss and
will in fact have immense difficulty paying any wage
increase.
(iii) Competition in the industry has increased. On the
home front high standards of competition are now
being set by a number of companies who have
streamlined their operations. There are also a
number of foreign companies selling on the Irish
market. As a result of the stiff competition facing
the Company, it will have to sell its products at
even lower prices than in 1986, in order to secure a
position in the market and remain viable.
(iv) The Company's 26th wage round proposals are in line
with settlements generally throughout the industry
and better than many. (Details provided to the
Court). The Company's offer is extremely fair and
reasonable when compared to inflation which is
currently less than 3%.
RECOMMENDATION:
5. The Court, having considered the submissions made by the
parties, recommends a 26th wage round agreement as follows:-
3% increase effective from 1st January, 1987, and
3% increase effective from 1st September, 1987.
The agreement to conclude on 31st March, 1988.
~
Signed on behalf of the Labour Court.
26th August, 1987 Nicholas Fitzgerald
B.O'N./M.F. Deputy Chairman.