Labour Court Database __________________________________________________________________________________ File Number: CD86971 Case Number: LCR11033 Section / Act: S67 Parties: SOUTHBOROUGH LTD - and - ITGWU |
Claim, on behalf of approximately 35 general operatives for a wage increase under the 26th wage round.
Recommendation:
6. In view of the circumstances under which the Company is
presently operating, the Court recommends that the original offer
of 2% and 4% be accepted.
Division: Mr O'Connell Mr Heffernan Mr O'Murchu
Text of Document__________________________________________________________________
CD86971 THE LABOUR COURT LCR11033
CC861605 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11033
Parties: SOUTHBOROUGH LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, on behalf of approximately 35 general operatives for a
wage increase under the 26th wage round.
Background:
2. The Company which is based in Kells, is engaged in the
manufacture of precision steel metal cabinets, and employs
approximately fifty people.
3. The 25th wage round for the workers concerned expired on the
31st July, 1986, and at a meeting between the parties on the 3rd
September, the Union lodged a claim for a phased 9% wage increase
for a twelve month period. On the 11th September the Company
responded by offering a two-phased wage increase of 6% over twelve
months (2% for six months and 4% for a further six months). The
Union rejected this and amended its claim to a two-phased 6%
increase with each phase giving 3%. This was unacceptable to the
Company and as local level negotiations failed to resolve the
dispute it was referred to the conciliation service of the Labour
Court on the 30th September, 1986. A response to the invitation
was received on 3rd November, 1986. No agreement could be reached
at a conciliation conference held on the 2nd December and on the
8th December the matter was referred to the Labour Court for
investigation and recommendation. A Court hearing was held on the
6th February, 1987.
Union's arguments:
4. (a) The workers work within a six point grading structure,
and hold quite a number of skills. The basic pay
structure is depended upon for earnings as bonuses are
only paid occasionally.
(b) The Union's amended proposal is in keeping with the
general terms being secured by workers in a wide range
of industry under the 26th round, the majority of these
being for a twelve month duration and providing for
single phase increases.
Company's arguments:
5. (i) The year ended August, 1985, saw the Company on the
brink of closure but since then through stricter
quality control and rationalization of overheads and
manning levels, it has managed to reach a breakeven
situation. However, it should be noted that since
1985, lay-offs and redundancies have been an on-going
feature.
(ii) The Company cannot move from its present position and
this offer is and always has been, its final offer.
Furthermore, it should be noted that in the previous
three months the Company has lost approximately
#17,000.
RECOMMENDATION:
6. In view of the circumstances under which the Company is
presently operating, the Court recommends that the original offer
of 2% and 4% be accepted.
~
Signed on behalf of the Labour Court
John O'Connell
___________________________
Deputy Chairman
26th February, 1987
D.H./J.C.