Labour Court Database __________________________________________________________________________________ File Number: CD87307 Case Number: LCR11240 Section / Act: S67 Parties: SMURFIT COMPUTER SERVICES LTD. - and - ITGWU |
Claim on behalf of six workers for a wage increase and the introduction of service pay under the 26th wage round.
Recommendation:
6. Having considered the submissions made the Court recommends
that employer's offer be amended to provide for an increase of:-
(a) 5% with effect from 1st October, 1986,
(b) 3% " " " 1st July, 1987.
for an agreement to expire on 31st December, 1987.
The Court does not recommend the introduction of service pay.
Division: Mr O'Connell Mr Shiel Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87307 THE LABOUR COURT LCR11240
CC87307 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11240
Parties: SMURFIT COMPUTING LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS UNION
(DUBLIN NO. 2 BRANCH)
Subject:
1. Claim on behalf of six workers for a wage increase and the
introduction of service pay under the 26th wage round.
Background:
2. The Company is a computer bureau which provides data
processing services to client organisations on a contract basis.
The workers' present rate of pay ranges from approximately #7,570
per annum to #10,000 per annum. Four of the workers work in the
computer area, one as a canteen manageress and one as a
receptionist. The 25th wage round for the workers expired on the
30th September, 1986 and in November, 1986 the Union on behalf of
the workers served a claim on the Company for a substantial
increase in pay and for improved conditions under the 26th wage
round. At local level in January, 1987 the Union detailed the
claims as follows:-
1. A 12% increase in pay for a twelve month period.
2. The introduction of service pay at a rate of #260 per
annum after five years service and a further #260 per
annum after ten years service (i.e. #520).
3. Closure at 5.00 p.m. - a reduction in working hours of
2.50 per week to 35 hours.
3. As no agreement could be reached at local level the matter was
referred on 12th January, 1987 to the conciliation service of the
Labour Court. A conciliation conference was held on 20th
February, 1987 at which the Company made an offer of 4.50% for
twelve months and 2.50% for six months, this agreement to operate
from the 1st October, 1986 to the 31st March, 1988. The Union
changed its claim to 9% for a twelve month period and service pay
as put forward in the original claim. The offer made by the
Company was put to the workers but was unacceptable and a further
conciliation conference took place on 10th April, 1987. As no
agreement could be reached the matter was referred on 10th April,
1987 to the Labour Court for investigation and recommendation.
The Court investigated the dispute on 14th May, 1987.
Union's arguments:
4. (i) In the 25th wage round the Company had put forward
proposals for a two year agreement, the 2nd phase of
which was 6% for twelve months, which was a superior
offer to the present offer put forward by the Company
for the same period.
(ii) The group of which this Company is a member has the
largest turnover of any group of companies in the State
and is on a par with the Banking Groups. The Company
services other companies in the group as well as other
subscribing companies. It also runs computer courses
for workers of other companies and this is a very
profitable operation.
(iii) The rates of pay of the workers in the Company are
below those in comparable companies (details supplied
to the Court). At a previous Court hearing held in
1983 the Company argued that business had been affected
by the introduction of mini and micro computers,
however, since then the Company has survived and traded
well. The workers are for the most part on the maximum
points of the salary scales which are therefore almost
individual rates. The introduction of service pay is
therefore required in order to reward long service and
experience with the Company.
Company's arguments:
5. (a) The Company is operating in a declining market.
Clients of the Company are increasingly using mini and
micro computer systems to carry out work which was
previously processed in the Company, the range of
computer systems now available and the low cost of
these means that in-house processing of data is more
feasible. In the last quarter of 1986, the Company
lost three major contracts which have not yet been
replaced.
(b) A previous Labour Court Recommendation, No. 8061 of
26th May, 1983 established new salary scales for
workers in the Company. The application of these
scales together with wage increases since have resulted
in an average increase in pay of approximately 40%,
compared to an increase of 21% in the Consumer Price
Index in the period February, 1983 to August, 1986.
The Company's offer in this wage round will result in
an increase in real terms for the workers as inflation
is currently 3.4% and expected to remain so for the
next twelve months.
(c) The five point salary scale in operation provides for
increases based both on experience and service with the
Company. These scales of pay recognise that in a very
short period of time workers move to a position where
long service does not bring any quantifiable additional
benefit to the Company. The introduction of service
pay is neither justified nor merited.
RECOMMENDATION:
6. Having considered the submissions made the Court recommends
that employer's offer be amended to provide for an increase of:-
(a) 5% with effect from 1st October, 1986,
(b) 3% " " " 1st July, 1987.
for an agreement to expire on 31st December, 1987.
The Court does not recommend the introduction of service pay.
~
Signed on behalf of the Labour Court
John O'Connell
_______________________
Deputy Chairman.
10th June, 1987.
U.M./J.C.