Labour Court Database __________________________________________________________________________________ File Number: CD87193 Case Number: LCR11238 Section / Act: S67 Parties: JIC ELECTRICAL CONTRACTING IND - and - ETU;NEETU |
Claim on behalf of approximately 3,500 electricians governed by the working rule agreement of the National Joint Industrial Council (N.J.I.C.) for the electrical contracting industry for (1) an increase of #35 per week in basic pay and (ii) a reduction in the working week to 35 hours under the 26th wage round in respect of an agreement to last for 12 months.
Recommendation:
4. The Court recognises the validity of the Unions' claim for
parity of wages for contracting electricians with electricians in
other industries. This was confirmed by the Court in
Recommendation No. 7177. However in view of the difficulties
which have existed in the industry for the last number of years
and which still exist the Court is of the view that to concede the
claim would not be realistic at present.
The Court recommends an increase of #5.50 per week for a period of
twelve months from date of expiry of the 25th round.
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD87193 THE LABOUR COURT LCR11238
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11238
Parties: ELECTRICAL CONTRACTORS' ASSOCIATION AND
ASSOCIATION OF ELECTRICAL CONTRACTORS OF IRELAND
AND
ELECTRICAL TRADES UNION AND
NATIONAL ENGINEERING AND ELECTRICAL TRADE UNION
Subject:
1. Claim on behalf of approximately 3,500 electricians governed
by the working rule agreement of the National Joint Industrial
Council (N.J.I.C.) for the electrical contracting industry for (1)
an increase of #35 per week in basic pay and (ii) a reduction in
the working week to 35 hours under the 26th wage round in respect
of an agreement to last for 12 months.
Background:
2. The 25th wage round agreement which expired on the 1st
January, 1987 provided for an increase of 5% from 1st January,
1986 and a further increase of 2% from 1st January, 1987, and was
for a 12 month duration. The current rate of pay is #3.9312 per
hour effective from 1st January, 1987. The Union lodged the above
mentioned claim at the N.J.I.C. meeting held on 19th December,
1986. At a meeting held on 9th March, 1987, the Employers' side
indicated that they could not propose an increase until the end of
1987. As agreement was not reached the matter was referred to the
Labour Court for investigation and recommendation under the terms
of Section 12 of the N.J.I.C. A Court hearing was held on 9th
April, 1987.
Unions' arguments:
3. (a) Over the last two wage rounds the workers have accepted
terms less than those recommended by the Court. This
was in recognition of the difficulties faced by the
industry. However the basic wage has fallen below that
of electricians employed in other areas and is so low
that it is forcing many workers to move into the black
economy. This in turn puts more pressure on the
contracting industry.
(b) The Employers' side have argued that the workers have
already received an increase in 1987. The Unions
refute this argument. The increase received was a
deferred payment due in August, 1986 under the 25th
wage round.
(c) Contracting electricians seldom have continuity of
employment. The older workers face the prospect of
permanent unemployment as employers prefer to have
younger workers.
(d) The increase sought goes someway in restoring the
imbalance which exists with other electricians who were
formerly members of the N.J.I.C.
Employers' arguments:
4. (i) The industry continues to be in deep recession with
unemployment rising almost daily, investment and
activity falling. It is forecast that this trend
will continue into 1987.
(ii) The cost of the claims is considerable and
concession, even in part, would further widen the
cost differential which already exists in favour of
the black economy thereby forcing many reputable
electrical contractors out of business.
(iii) Earnings in the industry will rise by 2% this year in
any case as a result of the increase paid on the 1st
January this year and it appears that the Government
will not approve much more than that for recovery
purposes on public sector contracts which now account
for over 70% of our work. As it is, many firms,
particularly the small ones, will not be able to
recover even that amount.
(iv) We accept that in seeking the trade unions'
agreements to no wage increases during the rest of
1987, we are asking for a sacrifice from the workers.
However, having regard to the projected rate of
inflation for 1987 and the recent increase, and
taking account of the effects of PAYE and PRSI on the
difference, we believe that the trade unions could
agree to a wage freeze for the whole of 1987 at no
great cost to their own members. In any case, it can
be seen from the details provided to the Court that
the earnings of the electricians compare very
favourably with earnings in other sectors of the
industry.
RECOMMENDATION:
4. The Court recognises the validity of the Unions' claim for
parity of wages for contracting electricians with electricians in
other industries. This was confirmed by the Court in
Recommendation No. 7177. However in view of the difficulties
which have existed in the industry for the last number of years
and which still exist the Court is of the view that to concede the
claim would not be realistic at present.
The Court recommends an increase of #5.50 per week for a period of
twelve months from date of expiry of the 25th round.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___11th____June,____1987. ___________________
M. D. / M. F. Deputy Chairman