Labour Court Database __________________________________________________________________________________ File Number: CD87843 Case Number: LCR11590 Section / Act: S67 Parties: BUTTLES BACON COMPANY LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim for a wage increase, reduction in working week and increased annual leave under the 26th wage round.
Recommendation:
7. The Court is of the opinion that the Company is not in a
position to give any general adjustment in basic rates but does
recommend that consideration should be given to negotiating
locally an increase in basic to those workers not in receipt of
the kill bonus.
Division: Mr O'Connell Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD87843 RECOMMENDATION NO. LCR11590
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: BUTTLES BACON COMPANY LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for a wage increase, reduction in working week and
increased annual leave under the 26th wage round.
BACKGROUND:
2. This claim concerns approximately 61 workers employed by the
Company in Enniscorthy. The 25th wage round expired for the
workers on 31st December, 1986. The Union claimed a 10% wage
increase over 12 months from 1st January, 1987, a reduction in the
working week and two extra days annual leave. The Company sought
a pay pause until 1st January, 1988. It also sought a
modification of the "kill bonus".
3. No agreement was reached through local negotiations and on
22nd April, 1987 the matter was referred to the conciliation
service of the Labour Court. A conciliation conference was held
on 28th April, 1987 but no agreement was reached. On 7th July,
1987 the case was referred to the Court for investigation and
recommendation. A Labour Court hearing was held on 24th August,
1987. On 10th September, 1987 the Court issued Labour Court
Recommendation No. 11394 as follows:
"Having considered the submissions of the parties and the
current position of the company the Court does not consider
an immediate recommendation is appropriate and proposes to
review the claim in November in the light of the
circumstances then prevailing".
4. In November, 1987 the Union requested the Labour Court to
review the claim in accordance with its earlier recommendation. A
further Court hearing was held on 25th November, 1987 in
Waterford.
UNION'S ARGUMENTS:
5. 1. The Union's arguments made in relation to Labour Court
Recommendation No. 11394 are still valid. However the 26th
wage round has progressed alot since the claim was first
made.
2. The Union wished to conclude a national agreement for
this industry but has had to deal with companies on an
individual basis.
3. The kill bonus is not consolidated into basic pay. The
workers level of earnings are due to the kill bonus therefore
they need an adjustment of their basic pay.
4. In the circumstances the Union would expect the Court to
make a final recommendation on the wage round.
COMPANY'S ARGUMENTS:
6. 1. The Company is not in a position to sustain any increase
its labour cost structure, which is already uncompetitive.
2. The Company's arguments made in relation to Labour Court
Recommendation No. 11394 are still valid. However other
developments have worked to the Company's disadvantage since
August, 1987.
3. The Company continues to be in straitened circumstances
and has disimproved from marginal profitability to losses.
It is involved in a 'holding operation' in an environment
which is increasingly competitive.
4. In its present structure it is not viable. Future
developments will depend on many imponderable factors. What
is certain is that any across the board labour cost increase
will militate against the Company's future.
5. The vast majority of employees have increased earnings of
9.2% over 1986.
RECOMMENDATION:
7. The Court is of the opinion that the Company is not in a
position to give any general adjustment in basic rates but does
recommend that consideration should be given to negotiating
locally an increase in basic to those workers not in receipt of
the kill bonus.
~
Signed on behalf of the Labour Court
John O'Connell
_________________________
17th December, 1987 Deputy Chairman.
T.O'M/J.C.