Labour Court Database __________________________________________________________________________________ File Number: CD86777 Case Number: LCR10922 Section / Act: S67 Parties: WELLMAN INTERNATIONAL LTD. - and - ITGWU |
Claims under the 26th wage round on behalf of approximately 280 workers for:- (a) a 12% wage increase (b) the introduction of a single grade pay structure (c) payment of attendance bonus (d) increases in the existing four-shift and three-shift allowances (e) weekly supplementary hours (two) to be paid at double time.
Recommendation:
5. The Court, having considered the submissions made by the
parties is of the view that the proposals made at Conciliation, as
amended by the Company on 1st December, 1986 are fair and
reasonable and should be accepted by the Union.
Signed on behalf of the Labour Court
Nicholas Fitzgerald
29th January, 1987 ---------------------
T.O'M/U.S. Deputy chairman
Division: Mr Fitzgerald Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD 86777 THE LABOUR COURT LCR10922
CC 861413 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR10922
Parties: WELLMAN INTERNATIONAL LIMITED
(Represented by Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claims under the 26th wage round on behalf of approximately
280 workers for:-
(a) a 12% wage increase
(b) the introduction of a single grade pay structure
(c) payment of attendance bonus
(d) increases in the existing four-shift and three-shift
allowances
(e) weekly supplementary hours (two) to be paid at double
time.
Background:
2. The Company has been engaged in the production of synthetic
fibre, at its factory in Mullagh, Co Meath since 1973. The 25th
wage round terminated on 30th April, 1986. The workers have a
basic rate of #122.37. A differential of #14.60 is paid to Grade
1 workers, #17.47 to Grade 3 and #21.92 to Grade 4 workers. The
Union served a 26th wage round claim which comprised nine separate
items. Local negotiations took place during which agreement was
reached on all but the five items listed above. No further
agreement was reached at local level and on 26th August, 1986 the
matter was referred to the conciliation service of the Labour
Court. Conciliation conferences were held on 1st October and 19th
November, 1986.
At the second conciliation conference the parties agreed to
recommend proposals for settlement as follows:-
(1) Job Grade Payments - Increase of #1.00 per Week, per
Employee on Existing Job Grade
Payments.
(2) Wages - Increase of 6.0% on Basic Rates of Pay and on
Job Grade Payments, for Twelve (12) Months
Duration.
Commencing: 1st May, 1986. Concluding: 30th
April, 1987.
(3) Perfect Attendance Scheme - Equalisation of Payment for
3 Shift Employees, to a
maximum payment of #300.00
per Annum.
(4) Service Leave - Reduction of Qualifying Period for One
(1) Additional Day/Shift from Ten (10)
years to Seven (7) years, to obtain
One (1) Day/Shift per Annum.
(5) Supplementary Hours Allowance - 4 Shift Employees Only.
- The Company to introduce an additional payment of:-
#1.17 per Week, Effective 1st February, 1987,
increasing to .40 per Week, Effective 1st March, 1987
Note: (1) This additional payment to be effective for
Twelve (12) Months duration up to 31st
January, 1988.
(2) This increase to be paid from 1st May,
1987.
(6) Shift Differential, 3 Shift Employees Only.
- The Company to introduce an increase of:-
#0.70p per Week, Effective 1st February, 1987,
increasing to #0.84p per Week, Effective 1st March,
1987.
Note: (1) This additional payment to be effective for
Twelve (12) Months up to 31st January, 1988.
(2) This increase to be paid from 1st May, 1987.
(7) Grade (1) Day Employees - Additional increase of #0.20p
per Week on Existing Job
Grade Payments.
The workers rejected these proposals although they had been
recommended by the Union's negotiating committee. On the 1st
December, 1986 the Company made minor improvements in its
proposals but the Workers rejected them The parties did not reach
any further agreement and the case was referred to the Court for
investigation and recommendation. A Labour Court hearing was held
on 2nd December, 1986 in Cavan.
Union's arguments:
3. (i) The workers should get a wage increase which is above
the average for the wage round (6.7%) because their
rates of pay are low for the type of work involved.
Most of the workers are on the moderate basic weekly
rate of #139.84 with no production bonus for any of the
workers.
(ii) The Union does not accept the Company's contention that
the workers have got above average wage increases in
recent wage rounds. If this were the case the basic
rates would not be so low.
(iii) The Union does not accept that the Company cannot
afford to concede its claim. It is accepted there were
some market difficulties this year. However the
reduction in manning levels was due to the Company's
decision that it would be more cost effective to cut
back on production than to cover annual leave with
overtime or the employment of new temporary workers.
There was an increase in production during the first
nine months of 1986 compared with the same period in
1985. The Union is aware of the Company's intention to
introduce new technology which will help it overcome
its difficulties in covering annual leave in future.
(iv) The workers expect to receive a 7% increase over 12
months. When little progress was being made on a
straight increase the Union sought an increase of #2.50
on grade rates in addition to the percentage increase.
(v) The Company has made wage round deals with other
workers which are worth approximately 8% overall.
Those workers also have higher wage rates than the
workers concerned.
(vi) The Company should up-grade all workers to grade 4 as
the various developments over the years have resulted
in a levelling up of skills required for the work
performed by the workers (details supplied to the
Court).
(vii) The equalisation of the good time keeping bonus has
practically been agreed. As a result 60 three-shift
operatives should be eligible for an extra #44 each at
the top rate of #300. This is presuming that the
Company will adhere to the proposals from the
conciliation conference. These payments should be made
to the workers in voucher form.
(viii)The Union contends that the four-shift allowance is out
of line and should be increased to approximately 40%.
The pattern involves working twelve hour shifts and
week-end work which are both extremely unsocial.
(ix) The present three-shift allowance of 20% is out of line
and should be increased to 25%.
(x) The workers on the four-shift pattern work an 84 hour
fortnight. Therefore, they work an average of two
extra hours each week compared to the normal forty hour
week. These extra hours are paid for at time plus a
half on the consolidated rate at present but the Union
claims they should be paid for at double time. The
Company's offer of time plus a sixth is not sufficient.
All other companies on a similar system pay workers at
double time rate.
Company's arguments:
4. (a) The workers' overall remuneration compares favourably
with that of other employments (details supplied to the
Court).
(b) The Company must ensure that its production costs,
including labour costs, are kept at a competitive
level.
(c) The Company has to face unfair competition from
producers in non-EEC countries. It has also
experienced trading difficulties in the last year which
has led to reduced production and pricing levels.
Cognisance should be taken of the Company's
trading situation which commenced in has been
unfavourable since November, 1985.
(d) The total value of the Company's offer is significantly
greater than that of most other reputable employments.
RECOMMENDATION:
5. The Court, having considered the submissions made by the
parties is of the view that the proposals made at Conciliation, as
amended by the Company on 1st December, 1986 are fair and
reasonable and should be accepted by the Union.
Signed on behalf of the Labour Court
Nicholas Fitzgerald
29th January, 1987 ---------------------
T.O'M/U.S. Deputy chairman