Labour Court Database __________________________________________________________________________________ File Number: CD86796 Case Number: LCR10979 Section / Act: S67 Parties: CENTENARY CO-OP SOC. - and - ITGWU |
Claims, in respect of the 26th wage round, for:- (a) 9% increase in basic pay (b) payment of forklift rate to 4 operatives (c) regrading of a worker (d) payment of craft rate to a worker.
Recommendation:
1987
Division: Mr Fitzgerald Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD86796 THE LABOUR COURT LCR10979
CC861292 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 10979
PARTIES: CENTENARY CO-OPERATIVE CREAMERY SOCIETY LIMITED
(Represented by the Irish Co-Operative Organisation Society)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claims, in respect of the 26th wage round, for:-
(a) 9% increase in basic pay
(b) payment of forklift rate to 4 operatives
(c) regrading of a worker
(d) payment of craft rate to a worker.
General background:
2. The Society is involved in the collection of milk and the
manufacture of butter and animal feedstuffs. This dispute
concerns approximately 60 workers employed a the Society's Central
Creamery in Ballyduff Thurles and in its branches located in
surrounding districts.
3. The terms of the 26th wage round expired for the workers
concerned on 28th February, 1986. In April, 1986, the Union, on
behalf of the workers concerned, served the above claims on the
Society in respect of a 26th round wage claim for 12 months
effective from 1st March, 1986. As no agreement could be reached
at local level the matters were referred, on 30th July, 1986, to
the conciliation service of the Labour Court. Following a
conciliation conference which took place on 8th October, 1986 (the
earliest date suitable to the parties) which failed to resolve the
dispute, the matters were referred to the Labour Court for
investigation and recommendation. Due to the unavailability of
the parties the Court was unable to investigate the dispute until
20th January, 1986, in Thurles.
Claim (a) - 9% increase in basic pay
Background:
4. The rates of pay applicable in the Society are based on the
graded wage structure agreed at industry level in 1971, between
the Irish Co-Operative Organisation Society (ICOS) and the Union.
The current basic pay (grade 3) of the workers, inclusive of the
terms of the 25th wage round, is #132.87 per week. The Union, on
behalf of the workers concerned, served a claim on the Society for
an 9% increase in basic pay for 12 months, in respect of the 26th
wage round due from 1st March, 1986. The Society rejected the
claim but at conciliation made the following offer on the claim:-
(a) a 12 month agreement effective from 1st March, 1986
(b) 1.50% increase in basic pay plus 1% bonus from 1st
March, 1986
(c) 1.50% increase in basic pay from 1st October, 1986.
The offer was rejected by the Union.
Union's arguments:
5. (i) Up to 1983 wages and conditions of employment for the
Co-operative industry were negotiated at national
level. Since 1983 however, individual societies have
negotiated wage rounds at local level, resulting in
various settlements and durations of agreements in the
industry. Accordingly, it is difficult to draw an
accurate comparison between pay rates obtaining in the
various co-operatives. However, taking the basic pay
of the lowest grade (grade 3) in the Society,
inclusive of the Societies offer, up to the end of
1986 and the rates applying to grade 3 in a cross
section of societies throughout the industry for the
same period (details supplied to the Court) it is
clear that the basic rates of pay of the workers
concerned are well out of line with those of similar
workers. A 6% increase would be necessary to bring
the workers into line with similar workers when
account is taken of 1987 trends.
(ii) The trend established in settlements generally under
the 26th wage round to date provides for a 6.8%
increase in basic pay over a 13.5 month period, which
when annualised is an increase of 6% over a 12 month
period. The Society's offer provides only for an
average increase of 3.5% over 12 months. In addition,
the average increase provided by the Society under the
25th wage round was well below the established norm
for that round.
(iii) In accordance with the Society's annual report for
1985 the Society realised a high nett profit for that
year, the volume of milk handled increased by 6.1%,
there was an increase of 6.6% in the price of milk to
suppliers while wage expenditure increased by less
than 1%. Accordingly, despite the Company's success
and the workers' increased productivity very little
was spent in additional labour costs.
(iv) At present the Society is earning high profits with a
decreased expenditure. Therefore, it is in a
financial position to concede the Union's claim.
Society's arguments:
6. (a) In considering this claim, the Society had regard to a
number of factors. The current serious economic
recession has had major effects on agriculture. The
dairy industry world wide is in serious over supply.
The Common Agricultural Policy is under pressure and
various mechanisms have been introduced which will
affect the Society financially. The introduction of
the Super Levy has reduced milk supply by 4% in 1986.
A further 8.5% reduction will occur over the next 2
years. Because the Society is also involved in
milling in a major way, the restrictions on milk
supply affect it in two ways. The cut in milk
supplies affects cow herd numbers and methods of
production, with consequent results on the Society's
milling and fertilizer sales. The position will
continue to deteriorate over the next few years.
(b) Despite revenue restrictions the Society must cope
with rising costs. Since 1983 wage levels in the
Society have outstripped the Consumer Price Index
(CPI) and continues to do so (details supplied to the
Court). The Society has kept pace with movements in
pay rates throughout the co-operative industry with
which it had a pay relationship for many years, and
taking grade 3 as an example, its rates are well above
the average for the industry. However an increasing
number of societies pay a bonus of up to 4% on top of
the basic rate. It was on this basis that the Company
made its offer on the 26th wage round which includes a
1% bonus payment.
(c) Application of the Society's offer would bring its
basic rates into line with the average rate of 17
other employments in the dairy industry, where
settlements under the current pay round have been
concluded.
(d) The Society's offer is fair and reasonable and is in
excess of the CPI for mid-November, 1985/86.
Claim (b) - payment of forklift rate to 4 operatives
Background:
7. In 1977 a National agreement for the dairy industry was
introduced which provided for the grading of workers. The workers
concerned are employed at four of the Society's branch creameries
and are on the current grade 3 rate of #132.87 per week. The
Union, on their behalf, served a claim on the Society for the
payment to them of the current forklift rate (grade 4) of #136.79
per week on the basis that their duties include the driving of
forklift trucks. The Society rejected the claim.
Union's argument:
8. In relation to grading the 1977 national agreement
in the industry provides as follows:-
"..... Those engaged in duties covering more than
one grade will be paid at the higher grade provided
that they are employed in that Grade for more than
3 hours a day ........"
In accordance with established practice this is also
the position. The workers concerned spend more than
50% of their time on fork-lift driving duties.
Accordingly, by not paying them the grade 4 rate,
which is the rate applicable to fork-lift drivers, the
Society is in breach of the standards accepted by the
industry as a whole.
Society's arguments:
9. In order to qualify for Grade 4, a worker under the
terms of the grading structure, must be employed on
the higher grade work "for more than three hours a
day". In this case, the operation of the fork lift
trucks is a seasonal feature, is not full time and is
confined to the Society's premises. Accordingly, the
staff do not meet the criteria for re-grading to Grade
4.
Claim (c) - re-grading of a worker
Background:
10. At present the worker is paid the methylene blue testing rate
of pay of #138.68 per week. He is now required to carry out extra
duties which the Union claims entitles him to the grade 6 rate of
pay which at present is #147.01 per week. The Company rejected
the claim.
Union's arguments:
11. (i) The worker is based in the Society's central creamery
in Ballyduff where he carries out laboratory duties
(detail supplied to the Court). During the milk
season he travels each morning to one of the Society's
branches where he performs duties associated with a
branch manager's job, i.e. intake and weighing of milk
supplies, selling feeding stuffs, stock control,
handling of cash sales, etc. For doing both jobs the
worker is paid grade 3 rate. However, given the
responsibility involved, the Union considers he is at
least entitled to the grade 6 rate and therefore, he
should be re-graded accordingly.
(ii) The job he performs in the laboratory is normally
performed by a laboratory technician. In other
creameries that category of worker is paid a weekly
wage ranging from #145 to #160 (pre 26th round)
depending on the creamery. In Avonmore creamery where
similar circumstances obtain the worker's counterpart
is paid a rate of #159.78 per week just to do the
stores duty, while similar workers in other creameries
doing store work are paid the grade 5 weekly rate of
pay (#141.70). Taking the above into consideration,
together with the worker's service, flexibility and
the quality of work performed by him, the claim for
grade 6 status is a fair and reasonable one.
Company's arguments:
12. (a) In addition to the duties he carried out in the past
the worker is now required to carry out milk intake
duties. Under the grading structure, the job of milk
intake is graded either Grade 3 (#132.87) or Grade 4
(#136.80). The lower grade job applies where milk is
taken from cans and the latter involves bulk intake.
The worker is involved in milk intake from cans.
Accordingly, his rate of pay is in excess of the
appropriate rate for the job.
(b) It is not correct to say that the worker carries out
all the duties of the former manager at the branch.
He is not required to carry out any administrative
work, record keeping, etc. His duties involve the
physical intake of milk, sample taking etc., as
defined in the grading structure. Consequently, he is
adequately paid for the duties performed by him.
Claim (d) - payment of craft rate of a worker
Background:
13. The worker is employed on the installation and maintenance of
milking machines and also carries out maintenance and repair work
of a general nature and is paid the grade 6 rate of #147.01 per
week. The Union, on behalf of the worker concerned, served a
claim on the Company for the application to him of the maintenance
rate of #160.12 per week. The Society rejected the claim.
Union's arguments:
14. (i) The worker has the ability to do any type of work of a
maintenance nature and is called upon to repair and
maintain all types of machinery and equipment in the
Society (details supplied to the Court). He lives
adjacent to the central creamery and is called out
when breakdowns occur outside normal working hours for
which he received no stand-by or call-out allowance.
The worker is, for all practical purposes, a
maintenance worker and should be paid accordingly.
(ii) As well as having two fitters full-time on the job,
the Society employs two garage mechanics, a carpenter
and a blocklayer to whom it pays the #160 claimed by
the worker. Given the worker's duties, versatility
and commitment, no valid reason exists why he should
not also be paid that rate of pay.
(iii) Similar workers in other creameries are paid in excess
what is being claimed by the worker.
(iv) The claim is fully justified and should be conceded.
Society's arguments:
15. (a) The worker is employed on the installation and
maintenance of milking machines. In his spare time or
during emergency breakdowns he is required to assist
the craftsmen. He is currently paid Grade 6 rate of
pay (#147.01). The Society can see no basis for this
claim.
(b) The grade of milking machine installation and
serviceman was agreed as a Grade 6 function under the
revised grading structure, 1977. The function of a
maintenance helper (craftsmen rate) is agreed at grade
4 level. The Society is satisfied, therefore, that
the worker is properly graded.
RECOMMENDATION:
16. The Court having considered the submissions made by the
parties recommends a 26th round wage round agreement as follows:-
2.50% increase effective from 1st March, 1986, to 31st
August, 1986
1.50% increase from 1st September, 1986, to 31st December,
1986
1% increase from 1st January, 1987 to 28th February,
1987.
As regards the claim in respect of the driving of four forklift
trucks, the Court recommends that this matter should be resolved
between the parties in the context of the 1977 Agreement.
The Court recommends in relation to the claim for the payment of a
craftsman's rate, the payment of a personal allowance of #100 per
annum to the worker concerned.
The Court does not recommend concession of the other claim.
~
Signed on behalf of the Labour Court
4th February, 1987 Nicholas Fitzgerald
T.McC./P.W. Deputy Chairman