Labour Court Database __________________________________________________________________________________ File Number: CD87384 Case Number: LCR11279 Section / Act: S67 Parties: GALWAY RYAN HOTEL - and - ITGWU |
Claim for increase in wages and bonus payment on behalf of approximately 40 workers under the 26th wage round.
Recommendation:
5. The Court having considered the submissions from both parties
recommends as follows in respect of the 26th wage round.
3% from 1st December, 1986 and a further
2.50% from 1st June, 1987.
An additional #1 per week on bonus.
The Agreement to terminate on 30th November, 1987.
Division: Ms Owens Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD87384 THE LABOUR COURT LCR11279
CC87283 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11279
PARTIES: GALWAY RYAN HOTEL
AND
IRISH TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claim for increase in wages and bonus payment on behalf of
approximately 40 workers under the 26th wage round.
BACKGROUND:
2. The Galway Ryan Hotel is part of the Ryan Hotel Group, 3 of
which are located in Dublin and 5 located around the country.
Each hotel negotiate on pay separately. The 25th wage round for
the Galway Ryan Hotel expired on 30th November, 1986. On the 18th
December, 1986 the Union lodged a claim under the 26th wage round
for (a) an increase of 9% in pay for twelve months effective from
1st December, 1986 and (b) the weekly bonus payment to be
increased from #11 to #12 per week for workers with over two
years' service and from #8.50 to #9.50 for workers with less than
two years' service. A meeting was held between the Hotel and the
Union on the 6th January, 1987. As no agreement was possible the
matter was referred to the conciliation service of the Labour
Court on 19th February, 1987. A conciliation conference was held
on 15th April, 1987. At the conference the Hotel made an offer of
a 24 month agreement, 4% from 1st December, 1986 with a further
4% from 1st December, 1988. This offer was rejected by the Union
and both parties agreed to a referral to the Labour Court for
investigation and recommendation. Subsequently the Hotel modified
their offer to an increase of 3% from 1st December, 1986, 4% from
1st August, 1987 and 3% from 1st June, 1988. The agreement to
terminate on 30th November, 1988. This revised offer was rejected
by the Union and a Labour Court hearing was held in Galway on 16th
June, 1987.
Union's arguments:
3. (a) The Company's offer does not compare very favourably
with the Joint Labour Committee (J.L.C.) Agreement of
5.10%, or the 5.50% secured by the Dublin hotels. Nor
does it reflect the level of co-operation and
flexibility given by the workers to the Hotel.
(b) The Hotel has been trading very successfully even
during the recession. In 1985, there was an effort by
an U.K. consortium to take over the Group and the
Galway Ryan was mentioned as contributing most of the
Group's profits. It is not fair to reflect the Group's
trading position as a reason for not conceding more
than the normal cost of living settlements.
(c) The Hotel can afford the increase sought without any
direct threat to its financial standing. The Hotel is
in a very unique position in Galway. It caters for a
market that does not have immense competition and is
also part of a Group which ensures the maximum benefits
from national advertising, booking etc.
(d) The Union is surprised that the Hotel only offered to
increase the bonus by whatever the cost of living
settlement was; as in the past this review has always
been done on the basis of #1 increase and there is no
practical reason to deviate from this practice as the
claim is a moderate one. The weekly bonus was
introduced in 1979 to replace the service charge.
Hotel's arguments:
4. (i) The Hotel is heavily dependant on the American and
domestic market for its business and these markets
are under considerable pressure. The level of
profits are falling and additional promotional
expenditure is necessary.
(ii) Profit margins must be maintained and increased if
possible in order to provide funds for reinvestment
in refurbishment, renovations etc.
(iii) The offer being made is the best possible in the
circumstances. It is well in excess of inflation and
compares favourably with other settlements in similar
companies.
(iv) The hotel industry cannot compete with levels of
settlements made in financially stronger industries.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends as follows in respect of the 26th wage round.
3% from 1st December, 1986 and a further
2.50% from 1st June, 1987.
An additional #1 per week on bonus.
The Agreement to terminate on 30th November, 1987.
~
Signed on behalf of the Labour Court.
Evelyn Owens
____1st___July,___1987. ___________________
M. D. / M. F. Deputy Chairman