Labour Court Database __________________________________________________________________________________ File Number: CD86868 Case Number: LCR10974 Section / Act: S67 Parties: IRISH NATIONAL STUD - and - FWUI |
Claim on behalf of approximately 40 workers for an increase in pay in respect of the 25th wage round and an agreed pay relationship for the future.
Recommendation:
6. The Court previously expressed the view in recommendation No.
8329 of 5th October, 1983, that there was merit in the claim of
the group concerned in this case that their basic wage rates
should be increased. The Court recommended at the time that the
parties should meet as soon as possible to negotiate new rates in
the context of the admission that the current rates were low.
Having considered the submissions made by the parties, the Court
is satisfied that the situation has not significantly changed
since 1983 and that an increase in wage rates is still warranted.
The Court recommends, accordingly, that the union accepts
management's offer in respect of the 25th Wage Round and also that
the wages of the claimants should additionally be increased on a
phased basis to bring them into line with the basic wages of
general (farmhand) operatives in An Foras Taluntais. In this
connection, the Court recommends that one third of the relevant
concession should be paid from 1st December, 1986, a further one
third from 1st December, 1987, and the balance from 1st July,
1988. The pay of the canteen and student staff should be
discussed between the parties in the light of this Recommendation.
Division: Mr Fitzgerald Mr Heffernan Mr Devine
Text of Document__________________________________________________________________
CD86868 THE LABOUR COURT LCR10974
CC86879 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 10974
PARTIES: IRISH NATIONAL STUD COMPANY LIMITED
and
FEDERATED WORKERS' UNION OF IRELAND
Subject:
1. Claim on behalf of approximately 40 workers for an increase in
pay in respect of the 25th wage round and an agreed pay
relationship for the future.
Background:
2. The Company was established in 1945 to improve the quality of
bloodstock in Ireland and to promote the interests of the Irish
Bloodstock Industry. The Company consists of: the Stud; the
Japanese Gardens and Horse Museum; and the Farm. The terms of
the 24th wage round expired for the workers on 30th September,
1985.
3. The Union, on behalf of the workers concerned served a number
of claims on the Company in December, 1985, including a claim for
a substantial increase in pay in respect of the 25th wage round.
At local level the Company made an offer of a phased increase of
7%. This was unacceptable to the Union and the matter was
referred on 19th May, 1986, to the conciliation service of the
Labour Court (other claims were resolved or deferred). A
conciliation conference was postponed at that time pending the
outcome of the 25th wage round for local authorities and health
boards. At further local talks the Union outlined its claim as an
increase in the rates of pay for general operatives per week from
a minimum of #101.78 and a maximum of #121.68 to #138.44 at the
minimum and #148.04 at the maximum point - related grades to be
amended accordingly and agreement to be reached on an agreed
analogue for the future. As agreement could not be reached the
matter was again referred to the conciliation service of the
Labour Court on 13th October, 1986. A conciliation conference was
held on 6th November, 1986, and as no agreement was reached the
claim was referred to the Labour Court on 7th November, 1986, for
investigation and recommendation. The Court investigated the
dispute on 12th December, 1986.
Union's arguments:
4. (i) The Company is a valuable State asset and as a
commercial Semi-State Company it has shown profits for
15 of the last 17 years - in the 2 years where there
were losses these were minor. The Company is in a
healthy trading position and its performance can be
favourably compared with successful public
enterprises and unlike many of these it has no long
term debts or borrowing.
(ii) During 1986 the Company has entered into arrangements
with financial institutions for short-term borrowing
in order to purchase new stallions. The Banks would
not enter into such an arrangement unless the Company
was considered to be in a sound financial position.
(iii) The stallion being syndicated will pay off borrowing
from the banks and fees from stallions in the coming
season will generate additional income.
(iv) While the Farm made a loss of approximately #100,000
in 1985, investments were made in the Farm to improve
its quality and losses would naturally result. While
the Japanese Gardens are a lossmaker it is a major
feature of the Stud and of national importance.
(v) Compared to other state sector employments the pay for
the workers concerned is low, particularly when
account is taken of the fact that they work a 5.50 day
week. Unlike other state employments' the workers did
not get the special provision for low paid workers in
the 1983 public service pay agreement. It is
difficult for the workers to maintain a decent
standard of living when the cost of living has gone
up, in comparison various costs to the company have
gone down.
(vi) Parity with local authority rates is sought as
although they are not the highest paid workers, they
are the major general worker group within the overall
State sector. The claim is also in line with the
rates paid in Forestry and related areas. The wages
of some of the other grades of workers employed in the
company are related to State-sponsored sector
employment.
(vii) The claim is of major importance to the workers
concerned, it is realistic and reasonable in
comparing it with rates of pay in other state sector
employment and is not the highest possible claim. The
Company can afford to pay the rates claimed.
Company's arguments:
5. (a) The Company is a commercial semi-state body which must
make a profit to survive. No subsidies or grants are
paid to it by the Government. Profits were down by
25% in 1985 there will be losses in 1986 and this will
continue for the next 4 - 5 years. Losses made in 2
other years were not minor.
(b) The Company's borrowing facility is set by legislation
at #500,000 which is a totally inadequate amount when
account is taken of the need to purchase stallions,
without which there would be no income and no Company.
The Company can only buy through a leasing/deferred
purchase arrangement with banks, the income from these
purchases has to be paid to the Bank until the
purchase price is completely repaid, this therefore
has to be considered a debt and not an income.
(c) The stallion being syndicated was already owned by the
Company, the syndication is not going as well as
expected due to the fall in bloodstock prices. Fees
from the stallion purchased will not generate any
income due to bank repayments. The farm made a loss
of approximately #100,000 in 1985, this was not due to
costs from improvement but from general running costs.
The Japanese Gardens are always loss-making and there
will be little turnover from yearling sales in 1987.
(d) Expenses are continually increasing and insurance
costs are a major expense. If wage increases of the
size sought are paid, increased costs will have to be
met by cutting services and by redundancies. The
Company would also lose its competitiveness.
(e) The Company cannot afford to pay more than the terms
of the 25th wage round as set out by the Government.
All other workers in the Company have accepted the
terms of the 25th wage round. The Company already
pays more than most other stud farms and the
appropriate comparison for wages should be with other
workers in the horse breeding industry and not with
local authority workers. The workers concerned have
more security of employment than in similar companies
as well as a pension scheme which was introduced in
1983.
RECOMMENDATION:
6. The Court previously expressed the view in recommendation No.
8329 of 5th October, 1983, that there was merit in the claim of
the group concerned in this case that their basic wage rates
should be increased. The Court recommended at the time that the
parties should meet as soon as possible to negotiate new rates in
the context of the admission that the current rates were low.
Having considered the submissions made by the parties, the Court
is satisfied that the situation has not significantly changed
since 1983 and that an increase in wage rates is still warranted.
The Court recommends, accordingly, that the union accepts
management's offer in respect of the 25th Wage Round and also that
the wages of the claimants should additionally be increased on a
phased basis to bring them into line with the basic wages of
general (farmhand) operatives in An Foras Taluntais. In this
connection, the Court recommends that one third of the relevant
concession should be paid from 1st December, 1986, a further one
third from 1st December, 1987, and the balance from 1st July,
1988. The pay of the canteen and student staff should be
discussed between the parties in the light of this Recommendation.
~
Signed on behalf of the Labour Court
2nd February, 1987 Nicholas Fitzgerald
U.M./P.W. Deputy Chairman