Labour Court Database __________________________________________________________________________________ File Number: CD87374 Case Number: LCR11294 Section / Act: S67 Parties: SHAMROCK CASTORS & WHEELS LTD - and - ITGWU |
Claim for an increase in pay on behalf of approximately 40 workers under the 26th wage round.
Recommendation:
5. The Court recommends that the Company's offer of 3% from 1st
January, 1987 and 3% from 1st July, 1987 be accepted but that the
assembly operators rate be increased to #108 with effect from 31st
December, 1987 i.e. prior to the application of any further
general increase.
Division: CHAIRMAN Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD87374 THE LABOUR COURT LCR11294
CC87665 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11294
PARTIES: SHAMROCK CASTORS & WHEELS LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for an increase in pay on behalf of approximately 40
workers under the 26th wage round.
BACKGROUND:
2. The Company manufactures castors and wheels mainly for the
export market. The basic rate of pay for the workers concerned
ranges from #100 to #159.20 per week. The 25th pay round expired
on the 31st December, 1986. At a meeting held in February, 1987,
the Company proposed an increase of 3% from 1st January, 1987 with
a further increase of 3% from 1st July, 1987, the agreement to
expire on 31st December, 1987. This offer was rejected by the
Union which was seeking an increase of 10% for a twelve month
duration effective from 1st January, 1987. The matter was
referred to the conciliation service of the Labour Court on 27th
April, 1987. A conciliation conference was held on 5th May, 1987.
As no agreement was possible both parties agreed to a referral to
the Labour Court for investigation and recommendation. A Labour
Court hearing was held in Sligo on 23rd June, 1987.
Union's arguments:
3. (a) The basic rates paid by the Company are very low when
compared with other industries in the Sligo area
(details supplied to the Court) and because of this the
Company's offer was rejected by the workers concerned.
(b) While a 10% increase may under the current wage round,
seem to be excessive, it is worth recording that for
the majority of the workers this represents an increase
of #10 per week.
(c) If the workers receive any less than the 10% increase
sought it will place them still further behind in the
areas wage league.
Company's arguments:
4. (i) The Company does not accept that there is any basis
for comparing rates of pay in Shamrock Castors with
rates applying in the locality. An increase of 6%
for a 12 month agreement is more than reasonable
given the Company's trading situation (details
supplied to the Court).
(ii) An increase of 6% more than compensates people for
increases in the cost of living for the period of the
agreement.
(iii) An increase of 6% in wage costs cannot be passed on
to the Company's customers by way of a higher price.
Any further increase over and above that already
proposed would seriously undermine the Company's
ability to compete.
RECOMMENDATION:
5. The Court recommends that the Company's offer of 3% from 1st
January, 1987 and 3% from 1st July, 1987 be accepted but that the
assembly operators rate be increased to #108 with effect from 31st
December, 1987 i.e. prior to the application of any further
general increase.
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Signed on behalf of the Labour Court.
John M. Horgan
____9th___July,____1987. ___________________
M. D. / M. F. Chairman.