Labour Court Database __________________________________________________________________________________ File Number: CD86817 Case Number: LCR10881 Section / Act: S67 Parties: BEMICO (I) LTD - and - ITGWU |
Claims under the 26th wage round.
Recommendation:
5. Having considered the submissions made, the Court recommends
that the Company's offer be amended to provide for an increase of
5% with effect from 1st August, 1986.
The Court does not recommend extension of the ex-gratia payment to
the seasonal workers.
The Court further recommends that the Company give more urgent
attention to the introduction of sick pay and pension schemes.
Division: Mr O'Connell Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD86817 THE LABOUR COURT LCR10881
CC861283 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR10881
Parties: BEMICO (IRELAND) LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claims under the 26th wage round.
Background:
2. The 25th wage round agreement expired on 31st July, 1986. The
Company which manufactures outdoor furniture was served with the
following claims under the 26th wage round by the Union which
represents 61 employees on 20th May, 1986.
(a) Increase in basic pay rates, (this was quantified by
letter of 5th June, 1986, as an increase of 12% over 12
months).
(b) Introduction of a pension scheme.
(c) Introduction of a sick pay scheme.
(d) Elimination of the existing juvenile wage structure.
Following correspondence and a meeting the Company's response was
an offer of an increase of 4% over a twelve month period as from
1st August, 1986, an ex-gratia payment of #230 to be paid to each
person on an eight week lay-off. The Company agreed to the
elimination of the existing juvenile rate, and also to look into
the costs of pension and sick pay schemes. The Union rejected the
Company's offer as inadequate. In respect of the ex-gratia
payment of #230 for people on lay-off the Union found this
acceptable but considered the payment should be extended to the
permanent seasonal workers who are specifically excluded from the
offer. The matter was referred to the conciliation service of the
Labour Court on 28th July, 1986 (earlier dates not suitable to the
parties). A conciliation conference was held on 10th October,
1986, a date suitable to both parties. As no agreement was
reached it was agreed to refer the issue to the Labour Court for
investigation and recommendation. A Labour Court hearing was held
in Waterford on 26th November, 1986.
Union's arguments:
3. (a) The claim for an increase of 12% is intended to provide
a percentage increase in line with the 26th pay round
norm plus a further percentage to bring the level of
pay more into line with that of other industries in the
area and nationally, and to try to recover some of the
ground lost in previous wage rounds.
(b) Account should also be taken of the fact that the work
is seasonal, giving eight months work to permanent
workers and less than that to the seasonal workers.
(c) The offer of an ex-gratia payment of #230 should be
extended to the seasonal workers as they are generally
on lay-off longer than the permanent workers.
(d) The introduction of a sick pay scheme along the lines
proposed by the Union (details supplied to the Court)
should be done without delay. Provisions of a sick pay
scheme are an essential condition of employment and not
a fringe benefit.
(e) The introduction of a pension scheme along the lines
operated by many good employers is being sought
(details of provisions of a scheme were supplied to the
Court). The workers are prepared to contribute to such
a scheme.
Company's arguments:
4. (i) The Company has to contend with severe competition and
pressure on prices because of changes in customer
demand for weather resistant furniture, and also the
bad weather of the past couple of years has compounded
the problem.
(ii) The Company has a major product development programme
to enable it to respond to changing customer demand.
Discussions are ongoing on the introduction of a bonus
scheme if and when the new changes are implemented.
(iii) The Company rejects the Union's claim for the extension
of the payment of ex gratia lump sums to seasonal
workers as their contracts had terminated before the
envisaged period of lay-off.
(iv) The Company has agreed to look at the costings on the
introduction of pension and sick pay schemes.
RECOMMENDATION:
5. Having considered the submissions made, the Court recommends
that the Company's offer be amended to provide for an increase of
5% with effect from 1st August, 1986.
The Court does not recommend extension of the ex-gratia payment to
the seasonal workers.
The Court further recommends that the Company give more urgent
attention to the introduction of sick pay and pension schemes.
~
Signed on behalf of the Labour Court
John O'Connell
________________________
Deputy Chairman.
7th January, 1987.
M.D./J.C.