Labour Court Database __________________________________________________________________________________ File Number: CD86985 Case Number: LCR11019 Section / Act: S67 Parties: CONNAUGHT MEAT PRODUCERS - and - ITGWU |
26 TH ROUND
Recommendation:
5. The Court is of the view that in the present financial
situation of the Company it would not be prudent to recommend any
increase in respect of the 26th Round claim at this time. The
Court accordingly recommends that the Union re-submit its claim in
July, 1987.
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD86985 THE LABOUR COURT LCR11019
CC861520 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11019
PARTIES: CONNAUGHT MEAT PRODUCERS LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, on behalf of approximately 17 butchers, checkers and
general operatives for an increase in pay under the 26th wage
round.
Background:
2. The Company is a wholly owned subsidiary of Cork Marts
Ltd./Irish Meat Producers and is located at Athleague, Co.
Roscommon. It is exclusively involved in sheep slaughtering for
the home and export markets. There are 35 permanent staff
employed. The current rates of pay are as follows:-
Butchers : #123.14
Checkers : #118.00
General Operatives : #111.00,
In addition, a bonus is paid, based on the number of lambs killed
which averages at about #70 to #80 per week when a full week is
worked. However, because of the seasonal nature of the business,
the workers can be laid off or put on short time for several
months of the year. The 26th wage round fell due on 16th June,
1986, and the Union served a claim for a 12% increase for 12
months. The Company stated that it was not in a position to make
any offer due to trading losses. The matter was referred to the
conciliation service of the Labour Court on 16th September, 1986,
and a conciliation conference was held on 12th December, 1986. No
agreement was reached, however, and the matter was referred to the
Labour Court for investigation and recommendation. A Court
hearing took place on 27th January, 1987, in Athlone.
Union's arguments:
3. (i) The wages in this Company are among the lowest in the
country (details of rates elsewhere in the meat
industry and in manufacturing industry were supplied
to the Court), despite the fact that the nature of the
work is the same. Furthermore, gross earnings in the
Company are reduced due to seasonal short time
working.
(ii) Increases under the 26th round averaged at 6.1% over
12 months. The Union's claim takes account of this
trend of the cost of living and of the current low
rates' of pay.
(iii) The Company made satisfactory profits in 1984 and 1985
but made losses throughout 1986. There were positive
developments in 1986, however. Heavy grant aided
capital investment took place which indicates
confidence by the Company's backers. There was also a
revision in the bonus scheme which resulted in large
productivity gains through the virtual abolition of
overtime. The Company has a highly skilled flexible
workforce and produces a first class product. While
the supply situation was difficult in 1986 it is
envisaged that stocks will come onto the market in
1987, and the Union believes that the coming year can
be viewed with a cautious degree of confidence.
Company's arguments:
4. (a) Management is not in a position to increase either
basic rates or bonus due to the severe trading losses
that the Company has incurred over the past twelve to
eighteen months.
(b) The Company's annual slaughter reduced by 9% over 1986
due to three main factors:-
(i) the increase in the volume of U.K. lamb on the
French market which meant that the Company had to
reduce its selling price by 16% giving rise to a
serious loss-making position,
(ii) 9% reduction in supplies to all factories in
Ireland,
(iii) increased competition in Ireland from five
additional factories which have now resumed
slaughtering operations.
(c) This is the only remaining company of the Cork
Marts/IMP Group following the closure of IMP
Middleton, IMP Leixlip, IMP Grand Canal Street and
Convenience Foods in Tallaght. All of these
experienced the inability to compete cost effectively
resulting in severe trading losses which after a
period of time could no longer be sustained. This
year will be one of the most important years for this
Company. It must achieve profits if it is to stay in
business. This can only be achieved by stabilising
overhead costs and competing more aggressively in the
marketplace.
(d) Another economic consideration for the Company was its
major investment in the factory and new equipment in
1986. This represented a cost in the region of
#300,000/#400,000. This was done in an effort to
compete more efficiently against the newer and
more modern plants with which they are in competition.
This substantial cost has not yet been recouped by the
Company and is unlikely to be for some time to come.
(e) The earning capacity of employees in the Company is in
the range of #200 to #250 per week. This is a very
attractive remunerative package and management is
totally satisfied that it could not be matched by any
other employer in the district. In the high season an
employee can earn as much as #15 to #20 per day on
bonus alone.
(f) Any further adjustment to the Company's costs at this
critical point could tip the balance and cause
far-reaching consequences for survival and employment.
The Company also feels that it would be commercial
suicide to render itself even more uncompetitive by
increasing wages further at a time when they have
higher gross wages than their competitors.
RECOMMENDATION:
5. The Court is of the view that in the present financial
situation of the Company it would not be prudent to recommend any
increase in respect of the 26th Round claim at this time. The
Court accordingly recommends that the Union re-submit its claim in
July, 1987.
~
Signed on behalf of the Labour Court
Evelyn Owens
18th March, 1987 ____________________
A.K./P.W. Deputy Chairman