Labour Court Database __________________________________________________________________________________ File Number: CD87778 Case Number: LCR11581 Section / Act: S67 Parties: IRISH ALE BREWERIES LTD - and - ITGWU;FWUI |
Claim for an increase in pay under the 27th wage round for 72 workers employed in the Ballyfermot depot.
Recommendation:
1988
Division: CHAIRMAN Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD87778 RECOMMENDATION NO. LCR11581
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: IRISH ALE BREWERIES LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Claim for an increase in pay under the 27th wage round for 72
workers employed in the Ballyfermot depot.
BACKGROUND:
2. Irish Ale Breweries Limited is a holding Company for four
operating companies, i.e. three breweries and Irish Ale Breweries
(Sales) Limited which has a depot at Ballyfermot. The claimants
are employed as drivers, helpers and yard staff at the Ballyfermot
depot. The 26th wage round expired on 31st May, 1987 and on 25th
May the Union served a claim under the 27th round for (a) a 12%
increase in pay for 12 months from the date of expiry of the
previous agreement (b) an increase of #2 on each point of the
service pay scale and (c) one extra days' annual leave. The
Company rejected claims (b) and (c) and offered a wage increase of
3% for 12 months with no pay pause. This was not acceptable to
the Union and the matter was referred on 16th August, 1987 to the
conciliation service of the Labour Court. At the same time, the
question of rationalisation was under consideration and Phase I of
a rationalisation programme was agreed. A conciliation conference
was held on 12th October, 1987, the earliest date suitable to the
parties. The Company sought agreement to on-going
rationalisation. The Union sought to keep the matter of
rationalisation separate from the wage round. Further local level
meetings took place on 18th and 19th November, 1987 at which
management made the following proposal:-
(i) 4.50% increase in pay for 12 months from 1st
June, 1987
(ii) Amendment of the Hired Transport Agreement
on the basis of compensation for loss of
earnings.
(iii) Ongoing Union co-operation with
implementation of manning reduction (from
67 to 60) and operational changes.
(iv) No further labour cost increasing claims.
This proposal was rejected by the Unions and a full Labour Court
hearing took place on 20th November, 1987.
UNION'S ARGUMENTS:
3. 1. The Unions rejected the inclusion of rationalisation
proposals in the wage round discussions. It was their
understanding that an agreement to the original
rationalisation proposals the wage round issue would be dealt
with separately.
2. The Unions are prepared to accept the Company's amended
proposal of 4.50% increase in pay. They cannot agree, however,
to ongoing co-operation with specific rationalisation
measures. The Unions are prepared, however to make a
committment to ongoing negotiations on further rationalisation
proposals. Phase I of the rationalisation programme was
agreed only on 10th November, 1987 and had not been
implemented in the depot at the date of the Labour Court
hearing. It is therefore considered unreasonable and
unacceptable for the Company to expect agreement to the second
phase of the programme in conjunction with the wage round
issue.
COMPANY'S ARGUMENTS:
4. 1. The Company has been experiencing declining sales over a
number of years. Its current sales position is a cause of
concern (details supplied to the Court).
2. The volume of business at the Ballyfermot depot has been
declining steadly since 1982 with a one third reduction since
that time.
3. Absenteeism has been giving rise to grave concern over
the years and currently stands at aproximately 15%. Three
employees are on final warnings.
4. It is necessary to reduce unit costs to 1982 levels and
for this reason on-going rationalisation has been necessary.
Further measures will be implemented over the coming year.
5. The Company considers that the employees enjoy an
attractive remuneration package (details supplied) and that it
is not unreasonable to ask them to agree to the Company's plan
for greater efficiency and improved customer service. The
rationalisation programme is designed to meet the urgent need
to safeguard the Company's viability and the jobs of its
employees.
RECOMMENDATION:
5. The Court recommends that there be an increase of 4.5 per cent
for 12 months with effect from 1st June, 1987 and that the Unions
agree to enter into immediate meaningful negotiations on the
implementation of the Company's further plans for cost reduction
and that these be on the basis that there will be no claims of a
cost increasing nature during the course of the agreement from any
source. The negotiations should be concluded by 31st January,
1988.
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Signed on behalf of the Labour Court
John M Horgan
10th December, 1987 ----------------
A.K./U.S. Chairman