Labour Court Database __________________________________________________________________________________ File Number: CD87299 Case Number: LCR11234 Section / Act: S67 Parties: STEINER LTD - and - ITGWU |
Claim on behalf of approximately sixty general workers for a wage increase and additional annual leave in respect of the 26th wage round.
Recommendation:
6. The Court having considered the submissions made by the
parties recommends a 26th round wage increase of #4 for 6 months
followed by #5 for 7 months effective from 1st January, 1987.
Division: Mr Fitzgerald Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD87299 THE LABOUR COURT LCR11234
CC8797 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11234
Parties: STEINER (GALWAY) LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of approximately sixty general workers for a
wage increase and additional annual leave in respect of the 26th
wage round.
Background:
2. The Company was established in 1969 and is a subsidiary of a
German Company. Its product is the metallising of plastic film
for the Capacitor Manufacturing Industry which is exported,
primarily to Germany and the United Kingdom. The workers main
rates of pay range from #148.80 per week to #186.60 per week. The
25th wage round for the workers expired on 31st December, 1986 and
on 18th December, 1986 at a local level meeting the Union served
the following claims on the Company:-
- an increase of #22 per week in one phase for a twelve
month period for all grades of hourly paid workers
(this was later modified to an increase of #15 per
week),
- an additional three days annual leave,
- a reduction in the working week.
The Company rejected this offer and made the following proposal:
- an increase of #3.00 per week from 1st January, 1987
for a six month period followed by an increase of #3.00
per week from 1st July, 1987 for a six month period.
- the claims for additional annual leave and reduced
working hours to be withdrawn and no further cost
increasing claims to be served for the duration of the
agreement.
3. The Company's proposals were put to the workers but were
rejected and on 20th January, 1987 the matter was referred to the
conciliation service of the Labour Court. A conciliation
conference took place on 27th February, 1987. At conciliation the
Union revised its claim to an #11 increase per week for a twelve
month period and an additional two days annual leave. This was
unacceptable to the Company who were prepared to put forward some
increase on the offer provided that the duration of the agreement
was extended beyond twelve months. As no agreement could be
reached the matter was referred on 3rd April, 1987 to the Labour
Court for investigation and recommendation. The Court
investigated the dispute on 20th May, 1987.
Union's arguments:
4. (i) The Company is in a strong trading position and has
been and continues to be very busy. It has worked a
seven day week so far this year and at the end of last
year a third shift was introduced. The introduction of
this shift has resulted in the loss in earnings of
approximately #60 to #65 a week to workers who were on
a twelve hour shift system. At the same time, the
workers have co-operated in improving productivity
within the Company and in making it successful.
(ii) The claim is reasonable and in line with settlements in
other companies in the 26th wage round where increases
in excess of 6% for a twelve month period are common
(details supplied to the Court). The concession of the
claim will merely maintain the level of wages of these
workers compared to workers in similar companies.
(iii) With the implementation of three shift working and
large amounts of overtime, the introduction of
additional annual leave would be of benefit to the
workers in terms of health and welfare and therefore,
in the interest of the Company.
Company's arguments:
5. (a) The Company purchases its materials in Deutsche Marks
and sells its products in Sterling. Throughout 1986,
the Deutsche Mark strengthened while Sterling weakened,
this has continued and means that the Company is paying
more for its purchases while obtaining less from its
sales.
(b) In order to overcome the erosion of its trading margin
due to the exchange rates, the Company has had various
options to consider. The Company cannot increase the
price of the product as the market would not tolerate
it at present, nor can it reduce costs as the Company's
main costs are fixed due to its importation of raw
materials. Therefore, the only option open to the
Company and one which it has taken since early 1986 has
been to increase volume and improve productivity. This
has led to the creation of twenty five additional jobs
to work an additional shift. It has also resulted in
increased overtime and shift opportunities and
consequently high actual earnings for the workers
(details supplied to the Court).
(c) Until now the Company has concentrated on a single
product the production of which is reliant on market
conditions. In the past this has resulted in temporary
lay-offs, short-time working, etc. Therefore, at
present the Company is researching a second product
which would overcome these difficulties. However, the
finance necessary for this project has put an
additional burden on finances.
(d) The Company pays high basic wage rates and the actual
level of earnings in the last year is very high
(details supplied to the Court). The Company also
provides substantial benefits and favourable conditions
of employment to the workers (details supplied to the
Court) at considerable cost to the Company and which
other companies do not supply. The Company considers
that a moderate increase in rates of pay is reasonable
in the circumstances and important for the future of
the Company.
RECOMMENDATION:
6. The Court having considered the submissions made by the
parties recommends a 26th round wage increase of #4 for 6 months
followed by #5 for 7 months effective from 1st January, 1987.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
-----------------------
11th June, 1987
U.M./U.S. Deputy Chairman