Labour Court Database __________________________________________________________________________________ File Number: CD87494 Case Number: LCR11342 Section / Act: S67 Parties: DONEGAL RUBBER CO. - and - ITGWU |
Claims on behalf of 105 workers for (a) 8% increase in basic pay (b) increase in shift premia (c) increase in annual leave and (d) 20% increase for low paid workers under the 27th wage round. Agreement to last for 12 months.
Recommendation:
5. The Court having considered the submissions from both parties
recommends as follows in relation to the 27th round claim:-
Pay: 5% increase for 15 months with a minimum of #6
per week
and
Annual leave:- An increase of 1 day's annual leave for employees
with 5 or more years' service.
The Court does not recommend concession of the other aspects of
the claim.
Division: Ms Owens Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD87494 THE LABOUR COURT LCR11342
CC87544 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11342
PARTIES: DONEGAL RUBBER COMPANY LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claims on behalf of 105 workers for (a) 8% increase in basic
pay (b) increase in shift premia (c) increase in annual leave
and (d) 20% increase for low paid workers under the 27th wage
round. Agreement to last for 12 months.
BACKGROUND:
2. The Company is based in Ballyshannon and employs
approximately 110 workers in the manufacture of rubber car
components for the automotive industry. The Company was
established in 1982 and is a subsidiary of Karl-Joh GMBH. The
26th wage round expired on 28th February, 1987. The Union lodged
the claims listed at (1) above under the 27th wage round. Item
(b) was quantified as time and a half for permanent night shift
(midnight to 8 a.m.) and time and a third for the other two shifts
(8 a.m. to 4 p.m; 4 p.m. to midnight); present rates are time
and a third and time and a sixth respectively. Item (c) was
quantified as 2 extra days annual leave, one day on Good Friday
and the other for workers with five or more years' service. The
Company rejected all elements of the claim except for (a) where
they offered an increase of 4%. The present rates of pay are:-
Machine operators #161 for day workers and #185.04 for night
workers. Fitters #221.60 (days) and #253.20 (nights) including
shift. Toolsetters #183.20 a week, quality and control #186 and
general workers #134.62 a week. The finishers to whom element (d)
of the claim refers are paid #108 a week. As no agreement was
possible at local level the matter was referred to the
conciliation service of the Labour Court on 2nd April, 1987. A
conciliation conference was held on 26th May, 1987. As a
resolution was not possible both parties agreed to a referral to
the Labour Court for investigation and recommendation. A Court
hearing was held in Letterkenny on 15th July, 1987.
Union's arguments:
3. (a) Claim for increase in basic pay: The Company has
increased its output substantially and machine
operators have carried an extra workload. This effort
should reflect itself in the wage packets. There is no
bonus paid for the extra production.
(b) Claim for increase in shift premia: The shift premia
should be adjusted as indeed T + 1/5 is paid for day
shifts in a number of employments. The premia paid for
permanent night shift workers is inadequate given the
social and domestic deprivation the working of such
hours entails. A publication by the European
Foundation for the improvement of living and working
conditions highlights the adverse effects shift and
night work can have on workers.
(c) Claim for increased annual leave: In the 25th and 26th
wage rounds companies have conceded extra days and
given that this Company has been established here for
sometime and that its parent Company in Germany would
have in excess of 20 days the claim for extra annual
leave is reasonable.
(d) Increase of 20% for low paid workers:
The finishers of whom there are 21 are lowly paid in
comparison to workers in industry elsewhere, some
having a take home pay of #70 to #80 a week. A
substantial increase in pay rates is justified here.
Company's arguments:
4. (i) Labour costs form the second highest element in the
overall cost structure at Donegal Rubber Limited.
Thus it is of critical importance that any increases
that take place in the labour costs, are wholly
justifiable. The Company has had to sustain price
decreases as a result of pressure from its customers
and therefore the opportunity to pass on any increase
in costs, be they labour or otherwise, does not
present itself in the market place.
(ii) The Company has expanded considerably since its start
up in 1982. At a time when most other employments
had been contracting in size, the Company has
expanded. There is no doubt that concession of any
of the Union's claims over and above the Company's
offer, would jeopardise this expansion and indeed
place serious pressure on the Company's current
business.
(iii) The current practice in the Company regarding the
payment of shift premia is in line with good practice
in industry and there is therefore absolutely no
justification whatsoever in this claim. Equally the
claim for additional days' annual leave when the
employees currently enjoy 20 days, again in line with
good practice in industry, must be regarded as
excessive. The Company should point out that at
conciliation, the Union argued that the Company had
considered at local level, the concession of one
additional days annual leave, but the Company pointed
out in response at that time, that any question of an
increase in annual leave being conceded, was linked
with a lesser pay offer than had subsequently been
made by the Company.
(iv) The claim for a special increase for the category of
workers described as finishers of whom there are
approximately 18 in the Company, was rejected on the
grounds that the nature of the work was extremely
simplistic and could in no way be compared to that of
either the ordinary general workers or the moulders
and was work that could easily be performed on a
sub-contracted basis at a much lesser cost or
alternatively, by the installation of the necessary
machinery. Thus, it was explained that any special
increase over and above the terms of a wage increase
for this category would seriously jeopardise the
continued performance of this work at the Company.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends as follows in relation to the 27th round claim:-
Pay: 5% increase for 15 months with a minimum of #6
per week
and
Annual leave:- An increase of 1 day's annual leave for employees
with 5 or more years' service.
The Court does not recommend concession of the other aspects of
the claim.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___________________
31st July, 1987.
M. D. / M. F. Deputy Chairman.