Labour Court Database __________________________________________________________________________________ File Number: CD86943 Case Number: LCR11022 Section / Act: S67 Parties: BARFORD MEATS LTD - and - ITGWU |
Claim under the 26th wage round for (a) an increase in pay, (b) an increase in annual leave entitlement and (c) compensation for four hours pay lost during agricultural officers dispute.
Recommendation:
5. The Court having considered the submissions from both parties
recommends as follows in relation to the 3 aspects of the claim
before it.
(a) Pay:- 5% increase from 1st April, 1986 for twelve
months.
(b) Annual Leave:- An increase of 1 days' annual leave
bringing the total to 18 days from 1st
January, 1987.
(c) Compensation for loss of hours:- The Court does not
recommend concession
of the claim.
Division: Ms Owens Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD86943 THE LABOUR COURT LCR11022
CC861740 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11022
Parties: BARFORD MEATS LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim under the 26th wage round for (a) an increase in pay,
(b) an increase in annual leave entitlement and (c) compensation
for four hours pay lost during agricultural officers dispute.
Background:
2. The Company purchased Alpha Foods Limited in September, 1984
which had gone into receivership earlier in the summer of that
year. The business of the Company is mainly secondary processing
of beef and the manufacture of beef burgers. Approximately 75 to
80 percent of its produce is sold in the export markets. The 25th
wage round agreement expired on 31st March, 1986. The Union wrote
to the Company on the 25th July, 1986 seeking a meeting to discuss
a replacement wage agreement under the 26th wage round. A meeting
took place on 1st October, 1986 at which the Union served the
following claims under the 26th wage round:
(a) an increase of 10% over a 12 month period,
(b) an increase of annual leave from 17 to 20 days,
(c) compensation for time lost in September due to an
agricultural officer's dispute (4 hours pay
approximately).
The Company acknowledged the claim and at a subsequent meeting
held on the 17th October, 1986 put forward its offer of an
increase of 3% over 12 months. The Company rejected claims (b)
and (c). This offer was unacceptable to the Union and the matter
was referred to the conciliation service of the Labour Court on
22nd October, 1986. A conciliation conference was held on 19th
November, 1986. As no agreement could be reached both parties
agreed to refer the issue to the Labour Court for investigation
and recommendation. A Labour Court hearing was held in Dundalk on
4th February, 1987 a date suitable to both parties.
Union's arguments:
3. (a) Pay: The basic rate in the Company is quite low, if not
the lowest in the industry when compared to other
companies (details supplied to the Court). These
companies also have a bonus payment scheme in
operation.
(b) The norm for wage increases under the 26th wage round
is an increase of 6% over 12 months.
(c) Annual Leave: The general norm is for 4 weeks annual
leave which has been conceded in industry generally
many years ago and is available to all workers
covered by Joint Labour Committees and Joint Industrial
Councils.
(d) In 1975 the E.E.C. Council of Ministers recognised that
a minimum of 4 weeks annual leave should be conceded to
all workers. When annual leave agreements are compared
at E.E.C. level (details supplied to the Court) it
shows the Company in very poor light.
(e) Compensation for lost hours: During the course of the
agricultural officers dispute the workers hours of work
were reduced because of the non-availability of
agricultural officers at particular times during the
day. Our agreement on the working week states the
normal working week will comprise of 40 hours Monday to
Friday on a five day week basis. The Union sees no
justification whatsoever, in reducing the workers hours
as the agreement relates to a 40 hours attendance.
Company's arguments:
4. (i) Pay:
The Company is still only in its infancy with
considerable money having already been devoted to
capital expenditure and further expenditure planned in
1987. The Company must therefore be extremely cautious
about its operational costs. Provided there is
prudence at this early stage in its life there is no
reason why Barford the Company could not grow into an
extremely healthy company giving secure long term
employment. However, the dramatic drop in the value of
Sterling vis a vis the Punt has dealt a bitter blow to
the Company putting export business in particular under
extreme pressure.
Furthermore the recent Sterling Green # devaluation has
resulted in a reduction in the level of subsidies
available on produce exported.
(ii) Annual Leave:
The question of the level of annual leave was raised at
the meeting in September, 1984 given that the Company
considered that the twenty days given by Alpha Foods
Limited was in excess of what could be afforded by the
new Company. An Agreement was reached subsequently
with the assistance of the conciliation service on the
level of annual leave (details supplied to the Court).
(iii) Compensation for loss of hours:
This matter arose from the dispute involving
agricultural officers. Approximately four hours were
lost over a number of days when the Company was unable
to provide employment for a full day. As soon as the
Company had notices of the agricultural officers
industrial action its own employees were informed.
Furthermore alternative work was not available as any
production which might have been carried out during the
agricultural officers work stoppage would not have been
certified for export. In addition no cleaning duties
were available as these were already being carried out
by other employees.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends as follows in relation to the 3 aspects of the claim
before it.
(a) Pay:- 5% increase from 1st April, 1986 for twelve
months.
(b) Annual Leave:- An increase of 1 days' annual leave
bringing the total to 18 days from 1st
January, 1987.
(c) Compensation for loss of hours:- The Court does not
recommend concession
of the claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
____________________________
Deputy Chairman
26th February, 1987
M.D./J.C.