Labour Court Database __________________________________________________________________________________ File Number: CD86969 Case Number: LCR10994 Section / Act: S67 Parties: IRISH FILTER SUPPLY - and - ITGWU |
26TH WAGE ROUND
Recommendation:
6. The Court, having considered the submissions made by the
parties recommends that the Company's offer be increased to 6% for
twelve months with effect from 1st June, 1986, and that the Union
accept this offer.
Division: Mr Fitzgerald Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD86969 THE LABOUR COURT LCR10994
CC861463 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 10994
PARTIES: IRISH FILTER SUPPLY LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of 29 workers for an increase in basic pay
under the 26th wage round.
Background:
2. The Company, which is based in Abbeyfeale, Co. Limerick,
produces wire gauze for the export market. It employs a total of
29 workers.
3. The terms of the 25th wage round expired for the workers
concerned on 31st May, 1986. The current weekly basic pay rates
of the workers, inclusive of the 25th wage round, are as follows:-
Beamers - #123.00
Weavers - #126.65
Threaders - # 91.15
In July, 1986, the Union, on behalf of the workers concerned,
served the following claims on the Company in respect of the 26th
wage round claim:-
(a) a substantial increase in basic pay
(b) an increase in annual leave entitlements.
In the course of subsequent negotiations on the matter between the
parties at local level the Union quantified its claim thus:-
(a) a 9% single phase increase in basic pay for 12 months
effective from 1st June, 1986 and
(b) 1 extra day's annual leave.
In response the Company offered the following terms in respect of
the 26th wage round:-
(a) 5% increase in basic pay for 12 months from 1st June,
1986 and
(b) 1 extra day's annual leave, as a floating day.
The offer in respect of pay was rejected by the workers and this
matter was referred, on 5th September, 1986, to the conciliation
service of the Labour Court. Following a conciliation conference,
which took place on 6th November, 1986, and at which no agreement
was reached, the matter was referred to the Labour Court, at the
request of the parties on 4th December, 1986, for investigation
and recommendation. The Court investigated the dispute on 21st
January, 1987, in Limerick.
Union's arguments:
4. (i) The Union's claim for a 9% increase in basic pay is
negotiable. However, an increase of 5% as offered by
the Company is unacceptable.
(ii) The current pay in the Company is inadequate and out
of line with the national average for industrial
employment which, in accordance with the latest
figures available, is #203.62 per week. In the
circumstances, the workers should at least maintain
their relative pay position under the current round.
In this respect, statistics show that the norm
established under the round is 6% over 12 months.
(iii) In all the circumstances the Union's claim is
reasonable and should be conceded.
Company's arguments:
5. (a) The Company is experiencing trading and commercial
difficulties and has been working hard, with the
co-operation of its workforce, to remain viable. It
was on this basis that the Company decided to make its
final offer at its first meeting with the Union in the
matter, which was the most it could possibly afford in
the face of continuing losses at that time.
(b) The Company had historically been 90% dependent upon
the United States (U.S.) market and was badly affected
by the falling value of the U.S. dollar. This has now
been rectified to some degree with 60% of its sales
denominated in U.S. dollars.
(c) Implementation of the Company's offer would cost an
additional #10,000 for the current year, which the
Company would have to carry, given that it is not in a
profit making situation.
(d) The Company has kept its employees advised of its
position and has adopted a reasonable approach
throughout negotiations with the Union on this claim.
RECOMMENDATION:
6. The Court, having considered the submissions made by the
parties recommends that the Company's offer be increased to 6% for
twelve months with effect from 1st June, 1986, and that the Union
accept this offer.
~
Signed on behalf of the Labour Court
16th February, 1987 Nicholas Fitzgerald
T.McC./P.W. Deputy Chairman