Labour Court Database __________________________________________________________________________________ File Number: CD86836 Case Number: LCR10885 Section / Act: S67 Parties: APD LIMERICK - and - ITGWU |
Claim for a wage increase under the 26th wage round.
Recommendation:
6. The Court, having considered the submissions made by the
parties recommends a 26th round wage agreement of 5% over twelve
months commencing on 12th May, 1986.
Division: Mr Fitzgerald Mr Shiel Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD86836 THE LABOUR COURT LCR10885
CC861666 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 10885
PARTIES: ALLIED PHARMACEUTICAL DISTRIBUTORS LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim for a wage increase under the 26th wage round.
Background:
2. This claim concerns thirty-five workers employed by the
Company as drivers, warehouse workers or clerical workers. The
25th wage round for these workers terminated on 11th May, 1986.
Their present basic rates of pay are drivers #124.88, warehouse
#123.50 and clerical from #96.19 to #136.84. In addition a
flexibility allowance of #17.90 is also paid. The Union lodged a
26th wage round claim for a 10% wage increase over twelve months,
the granting of pro-rata holidays for part-time staff (an increase
from 2 to 4 weeks) and pro rata payment of the flexibility
allowance for part timers who work extra hours. The Company
rejected the claim. Local negotiations took place with the
Company making a final offer of a 4% wage increase over twelve
months, 3 weeks' holidays for part-time workers with a review in
the next pay round and pro-rata flexibility to be paid to part-
timers. The Union which amended its claim to an 8% wage increase
was willing to agree to the other parts of the Company's offer.
However no agreement was reached at local negotiations on a wage
increase.
3. On 14th October, 1986, the matter was referred to the
conciliation service of the Labour Court. A conciliation
conference was held on 22nd October, 1986, but no agreement was
reached. On 28th October, 1986, the case was referred to the
Court for investigation and recommendation. A Labour Court
hearing was held on 11th November, 1986, in Limerick.
Union's arguments:
4. (i) The Company has difficulties at present. However, it
is clear that it is still a strong business and is
doing reasonably well. The Union took account of the
Company's difficulties when formulating its claim.
(ii) The Company has made major investments in technology
in the past. The workers have co-operated with this
investment at all times.
(iii) This is a labour-intensive industry. It is incumbent
on the Company to make reasonable investment in its
workforce which is its most important element.
(iv) Many of the workers were former employees of United
Drug Ltd. and the Company has committed itself to
keeping its rates of pay in line with those in that
firm. During the 25th wage round the Union took
account of the Company's position and allowed the
rates to move out of line with the United Drug rates.
The Union is not prepared to allow a further
deterioration in the rates at this stage. As far as
the Union is aware United Drug has already reached
agreement for a 6.50% wage increase over 13 months for
this round.
(v) The workers are paid less than their colleagues at
head office in Dublin. The Union's claim is in line
with the majority of settlements in the area. A
failure to resolve this issue to the workers'
satisfaction will affect the good industrial relations
enjoyed and built up by both sides over the years.
Company's arguments:
5. (a) The Company is in a very difficult trading position,
with prices, volume turnover all falling dramatically
in recent years. It is against this background that
the Company negotiated the wage round.
(b) The Company has a committment to its future trading
situation. It must also be conscious of outside
factors which could determine the on-going trading
situation that will prevail.
(c) The Company's offer of a 4% wage increase is
reasonable in the light of the internal and market
circumstances (details supplied to the Court) and the
current rate of inflation. This offer is the best the
Company can do to try and meet the workers'
aspirations. The Company acknowledges the great
contribution made by the workers since its foundation
and it trusts they will renew their effort to help
overcome the present crisis.
(d) The ability to overcome the Company's present
difficulties and to survive in the medium to long term
will depend on the workers' co-operation and cost
control. Wages represent the single biggest cost to
the Company after stock. The contribution margin to
fund the present wages and overheads is all but
insufficient. Any increase in costs, while price
increases remain impossible, only serves to jeopardise
the future of the Company.
RECOMMENDATION:
6. The Court, having considered the submissions made by the
parties recommends a 26th round wage agreement of 5% over twelve
months commencing on 12th May, 1986.
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Signed on behalf of the Labour Court
8th January, 1987 Nicholas Fitzgerald
T.O'M./P. Deputy Chairman