Labour Court Database __________________________________________________________________________________ File Number: CD87214 Case Number: LCR11218 Section / Act: S67 Parties: HOFFNER LTD - and - ITGWU |
Claim on behalf of approximately 78 general operatives for a wage increase under the 26th wage round.
Recommendation:
5. The Court is of the view that the Company's offer of the 28th
November, 1986, should be amended to include a pro-rata increase
in bonus payment and recommends that the revised offer be accepted
by the Union.
Division: Ms Owens Mr Shiel Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87214 THE LABOUR COURT LCR11218
CC8792 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11218
Parties: HOFNAR IRELAND LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of approximately 78 general operatives for a
wage increase under the 26th wage round.
Background:
2. The 25th round for the workers concerned expired on the 31st
August, 1986 (LCR10581 refers) and at a meeting on the 24th
September, 1986, the Union lodged a claim for a 10% increase on
basic rates, bonus and service pay for a twelve month period. At
a further meeting on the 26th November, the Company responded by
putting forward the following offer:-
- #3.50 from the 1st September, 1986
- 3% from the 1st January, 1987
- Agreement to terminate on 31st December, 1987.
This was rejected by secret ballot at a general meeting of the
workers on the 4th December and the matter was referred to the
conciliation service of the Labour Court on the 19th January,
1987. No progress was made at a conciliation conference held on
the 12th February and the matter was referred to the Labour Court
for investigation and recommendation. A Court hearing was held on
the 4th May, 1987.
Union's arguments:
3. (a) The claimants' rejection of the Company's offer was
influenced not only by its size but also by its
duration and the fact that the increase did not take
into account the bonus scheme nor the service pay.
(b) The absence of any amendment to the bonus scheme, in
keeping with increases to basic pay, will prove to be
counter-productive in the long term.
(c) The Union has submitted to the Court a list of
comparable companies whose pay rates are far in excess
of those which the Company pays. In addition, the
Company's rates are also out of line with other
companies in the area.
Company's arguments:
4. (i) In early 1985, the Company was threatened with
closure as a result of its parent Company going into
liquidation and although closure was averted by the
parent Company being taken over, sales of cigars have
dropped considerably. Since January, 1985, the
numbers employed have fallen from 122 to 98 in the
Irish plant. This trend stabilised as a result of
the Company regaining some portion of the market
sales which it had lost but unfortunately it
experienced a further setback. In April, 1986, its
agent in Belgium ceased selling Hofnar cigars. For
the next 9/10 months the Company tried to secure
another agent but was unsuccessful. It now employs a
sales force of four, who commenced selling on the
15th March, 1987. The Company sold only 7 million
pieces in 1986 and to justify its sales force it must
double this in 1987. This should improve production
in Ireland in the long term and thus enable the
Company to maintain its present workforce of 90.
(ii) Because of the loss in 1986, the Company was forced
to take a two weeks' lay-off in February and March of
this year.
(iii) Given the circumstances which the Company has
experienced over the past number of years and its
present difficulties, it is satisfied that it has
made the best possible offer and any further costs in
wages could put a question mark over the present
employment level.
RECOMMENDATION:
5. The Court is of the view that the Company's offer of the 28th
November, 1986, should be amended to include a pro-rata increase
in bonus payment and recommends that the revised offer be accepted
by the Union.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___5th____June,____1987. ___________________
D. H. / M. F. Deputy Chairman