Labour Court Database __________________________________________________________________________________ File Number: CD87826 Case Number: LCR11584 Section / Act: S67 Parties: MURPHY & O'CONNOR LTD. - and - ITGWU |
Claim for pay increase under the 27th wage round.
Recommendation:
5. The Court is of the view that the Company offer dated 10th
July, 1987, of 5% for 13 months is reasonable and should be
accepted.
The Court so recommends.
Division: Ms Owens Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87826 RECOMMENDATION NO LCR11584
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: MURPHY & O'CONNOR LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for pay increase under the 27th wage round.
BACKGROUND:
2. The Company is a builders providers business and is part of a
group of companies which are involved in oil distribution, coal,
grocery, drapery and hardware. The workers in all sections were
offered a wage increase of 4.50% for 12 months or 5% for 13 months.
The latter was accepted by all except the Murphy and O'Connor
section. Here the Union, on behalf of the workers, served a claim
on the Company for a 9% increase on basic rates in one phase for a
twelve month period. The claim was based on:-
(1) A 27th round wages claim.
(2) An additional increase to reduce the differential between the
wage rates paid to the workers concerned and those paid to
workers employed by competitors of the Company. (details
supplied to Court).
The above mentioned Company's offer was not acceptable to the
Union, and no agreement was reached. On 17th August, 1987, the
matter was referred to the conciliation service of the Labour
Court. A conciliation conference took place on 13th October,
1987. No agreement was reached and on 3rd November, 1987, the
matter was referred to the Labour Court for investigation and
recommendation. A Court hearing took place in Dublin on 1st
December, 1987.
UNION'S ARGUMENTS:
3. 1. The Company is engaged in the same type of business as two
local competitor companies, which pay their workers rates far
in excess of those paid to the claimants.
2. Workers employed by the Company give full flexibility,
which in turn allows for a more efficient operation.
3. There has been increased productivity during the past
twelve to eighteen months, as a number of workers have left
and have not been replaced. Their work is now being done by a
reduced workforce.
3. 4. The workers concerned see no valid reason why they should
have to continue to accept the present rates, when other
workers doing similar work are paid a much higher rate.
COMPANY'S ARGUMENTS:
4. 1. The Company is part of a group of companies in Bantry
whose employees are represented by the Union. Negotiations on
the revision of pay rates of all employees in the group took
place on 10th July, 1987, at which the Company made the
following final offer:-
(a) An increase of 4.50% with effect from 1st May, 1987, for
twelve months.
or
(b) An increase of 5% with effect from 1st May, 1987, for 13
months.
Either of these options are fully in line with settlements
generally. The employees of all members of the group, have
accepted option (b). The workers employed in the Company
rejected both options.
2. The Company cannot concede and should not be asked to give
a greater increase to the employees concerned with this claim
for obvious reasons of comparability. The recession in the
building industry continues to have serious effects on
builders providers generally. The reduction in building
activity has lead in many cases to company closures,
redundancies, and short-time working in the builder providers
sector.
3. The Company has struggled, in very difficult
circumstances, to weather the recession, and has not to-date
made any of its employees redundant, nor has it introduced
short-time working. Recent forecasts for the industry are
continuing to be gloomy.
4. Since 1980, the Company has conceded increases in basic
wages to its employees which are in excess of increases
conceded generally, and which were substantially greater than
those conceded by its competitors in the West Cork area. The
Company has also introduced a generous pension scheme for its
employees.
The Company requests the Court to confirm its offer as fair
and reasonable.
RECOMMENDATION:
5. The Court is of the view that the Company offer dated 10th
July, 1987, of 5% for 13 months is reasonable and should be
accepted.
The Court so recommends.
~
Signed on behalf of the Labour Court.
Evelyn Owens
__11th___December,___1987. ___________________
P. F. / M. F. Deputy Chairman