Labour Court Database __________________________________________________________________________________ File Number: CD87313 Case Number: LCR11226 Section / Act: S67 Parties: CEROS LTD - and - AEU |
Claim on behalf of 8 workers for an increase in basic pay in respect of the 26th wage round.
Recommendation:
5. The Court has considered the submissions made by the parties
and has noted the difficult trading position of the Company. In
the circumstances of this case the Court recommends that the wages
of the three workers on #132.88 per week should be increased from
1st January, 1987 to #140.50 per week on the clear understanding
that there will be no repercussive claims for restoration of
relativities by the other claimants. The Court also recommends
that the wages of the other five claimants should be increased by
5% also effective from 1st January, 1987. The increases in both
cases to apply for a period of 12 months.
Division: Mr Fitzgerald Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD87313 THE LABOUR COURT LCR11226
CC87267 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11226
Parties: CEROS LIMITED
(Represented by the Federated Union of Employers)
and
AMALGAMATED ENGINEERING UNION
Subject:
1. Claim on behalf of 8 workers for an increase in basic pay in
respect of the 26th wage round.
Background:
2. The Company is involved in light engineering, the finished
product of which is exported to Denmark. In 1985 the Company was
taken over from its Danish parent Company by another Danish
Company. The workers' present rates of pay are as follows:- three
workers earn #132.88 per week; two workers earn #148.63 per week
and three earn #163.72 per week. In January, 1987 the Union
served a claim on the Company for a 12% increase in pay for a
twelve month period from 1st January, 1987. At local level the
Company in response made an offer of an increase of 5% from 1st
January, 1987 for a twelve month period. This was unacceptable to
the Union and on 17th February, 1987 the matter was referred to
the conciliation service of the Labour Court. A conciliation
conference took place on 8th April, 1987 at which the following
proposal was put to both sides:-
- a first phase increase of 4% for seven months with
effect from 1st January, 1987 followed by a second
phase increase of 3% for eight months, with effect
from 1st August, 1987 the agreement to last 15 months.
This proposal was however rejected by both parties and on 15th
April, 1987 the matter was referred to the Labour Court for
investigation and recommendation. The Court investigated the
dispute on 20th May, 1987.
Union's arguments:
3. (i) At the end of 1985, when the Company was taken over it
was emphasised that existing agreements would remain in
force. It was also agreed that the Company would make
efforts to improve the rates of pay of the workers
which were among the lowest levels of pay in Ireland.
In the 25th wage round a 5% increase was paid and the
Company undertook to make efforts to close this gap in
the rates of pay.
(ii) The rates of pay in the Company, particularly for those
workers at the lowest rate are considerably below those
paid to comparable workers in other companies (details
supplied to the Court). The Union's claim for a 12%
increase would improve the situation to some degree for
these workers, some of whom have very long service with
the Company.
Company's arguments:
4. (a) Since the takeover of the Company in October, 1985, it
has been in a loss-making situation, - losses last year
amounted to #25,000. It was necessary to introduce
short-time working for ten weeks in 1987 (the workers
returned to full-time employment in March of this year)
and the workers have been kept fully informed of the
Company's situation.
(b) The Company when taken over by the present Danish
Company was in a loss making situation which has
continued. The Company is trying to become viable and
the parent Company could not in the present
circumstances consider cost increases which would
affect the future of the Company in its present
financial situation (details supplied to the Court).
RECOMMENDATION:
5. The Court has considered the submissions made by the parties
and has noted the difficult trading position of the Company. In
the circumstances of this case the Court recommends that the wages
of the three workers on #132.88 per week should be increased from
1st January, 1987 to #140.50 per week on the clear understanding
that there will be no repercussive claims for restoration of
relativities by the other claimants. The Court also recommends
that the wages of the other five claimants should be increased by
5% also effective from 1st January, 1987. The increases in both
cases to apply for a period of 12 months.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
15th June, 1987 --------------------
U.M./U.S. Deputy Chairman