Labour Court Database __________________________________________________________________________________ File Number: CD86989 Case Number: LCR10970 Section / Act: S20(2) Parties: TRUX TRANSPORT - and - ITGWU |
Additional Increase under 25th/26th Wage Round.
Recommendation:
5. The Court, having regard to the current financial position,
does not recommend concession of the claim.
Signed on behalf of the Labour Court
John M. Horgan
-----------------
11th February, 1987 Chairman
P.F./U.S.
Division: CHAIRMAN Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD86989 THE LABOUR COURT ARB1/87
CC86319 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
ARBITRATION NO. 1 OF 1987
Parties: TRUX TRANSPORT LTD
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Additional Increase under 25th/26th Wage Round.
Background:
2. The Union commenced negotiation with the Company on the 25th
Wage Round on 31st October, 1985. At a meeting on 23rd July,
1986,, the Union advised the Company that the last wage increase
its members received was in October, 1984, and that the previous
agreement expired on 30th April, 1985. The Union, on behalf of
the workers was seeking an increase under both the 25th and 26th
wage rounds. Following further local contacts the Company put
forward a package on 24th September, 1986, the wage element of
which was rejected by the Union. A conciliation conference held
in the Labour Court on 15th October, 1986, failed to resolve the
issue. Subsequently however, the parties agreed terms which
included a 5.50% increase from 1st May 1986. It was agreed that the
Union's claim for an additional increase would be referred to the
Labour Court for binding arbitration. On 15th December, 1986, the
matter was referred to the Labour Court and on 19th January, 1987,
a Court hearing took place in Dublin.
Union's arguments:
3. (i) Whilst the 5.50% increase that has been conceded to the
workers is acknowledged as being a belated response
from the Company, the Union contends that an additional
increase is necessary in order to bring it into line
with settlements generally, under both the 25th and
26th Wage Round (details with Court).
(ii) For many years the level of inflation has been
extremely high, and the workers have found it hard to
secure an increase that would compensate for that level
of inflation. A gross increase of 5.50% will be
considerably reduced by income tax, P.R.S.I., budget
increases, and other deductions. While inflation has
been considerably reduced the workers find it difficult
to subsist on the current wage levels which are:-
drivers - #128.85 per week
warehouse workers - #139.22 " "
(inclusive of the 5.50% increase).
Company's arguments:
4 (a) The Company does not contest the material facts of this
dispute, as presented by the Union. However, it
contends that to concede a further increase at this
juncture would be extremely irresponsible and in the
worst interests of both the workers and Company. The
Company is currently experiencing severe financial
difficulties, and it will take a great effort on the
part of both workers and management to ensure its
survival (details with Court).
(b) The Company contends that it would be the height of
folly for the Union to be intransigent on this issue.
The current wage levels are the best that can be
sustained at the moment. Any further costs incurred at
the Dublin Depot will inevitably lead to its closure.
ARBITRATION:
5. The Court, having regard to the current financial position,
does not recommend concession of the claim.
Signed on behalf of the Labour Court
John M. Horgan
-----------------
11th February, 1987 Chairman
P.F./U.S.