Labour Court Database __________________________________________________________________________________ File Number: CD8757 Case Number: LCR11046 Section / Act: S67 Parties: FONDERMANNS,LONGFORD - and - ITGWU |
Claim, on behalf of approximately 43 general operatives, for an increase in pay under the 26th Wage Round.
Recommendation:
The Court, having considered the submissions made by the parties,
recommends that the final phase of the proposed increase be
amended and extended to provide for an increase of #5 per week for
the period 1st July, 1987 to 31st December, 1987.
Division: Mr Fitzgerald Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD8757 THE LABOUR COURT LCR11046
CC861496 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11046
Parties: FONDERMANNS AND COMPANY (IRELAND) LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, on behalf of approximately 43 general operatives, for
an increase in pay under the 26th Wage Round.
Background:
2. The Company, which is based at Longford, is engaged in the
manufacture of industrial safety products and is German owned.
The current rate of pay for general operatives is #96.22 per 40
hour week. The 25th Wage Round expired on 30th June, 1986. The
Union served a claim under the 26th Round for a #14 per week
increase. The Company offered a 15 month agreement with increases
as follows:
#2.00 from 1st July, 1986,
#2.95 from 1st January, 1987,
#2.00 from 1st July, 1987.
This offer was rejected and the matter was referred to the
conciliation service of the Labour Court on 9th September, 1986.
A conciliation conference took place on 28th October, 1986 and the
following settlement proposal emerged:
#4 increase from 1st July, 1986,
#2 increase from 1st October, 1986,
#3 increase from 1st July, 1987,
the agreement to expire on 30th September, 1987.
This proposal was rejected by the workforce and on 21st January,
1987 the matter was referred to a full hearing of the Labour
Court. The hearing took place on 17th February, 1987 in Longford.
Union's Arguments
3 (i) The current basic rate of pay is low when compared to
rates generally in the plastics industry. The current
average rate of pay within the industry is #136.00 per
forty hour week.
(ii) The Union is claiming a #14 per week increase, which in
the context of rates elsewhere in the industry, it
considers to be fair and reasonable.
Company's Arguments
4 (a) The Company is experiencing intense competition. The
plant is small and labour intensive and is competing with
large manufacturing units. As it deals within EMS markets
it is experiencing a disimproved position due to last
year's devaluation of the punt. One of the products is
competing with a more attractive product. The Company's
major customer has indicated that a price increase in 1987
will not be accepted. Thus any wage increase will have to
be funded through increased efficiency. The level of
orders has been low since last October, giving rise to the
possibility of lay offs.
(b) The Company cannot justify an increase above the proposal
which emerged at conciliation.
Recommendation:
The Court, having considered the submissions made by the parties,
recommends that the final phase of the proposed increase be
amended and extended to provide for an increase of #5 per week for
the period 1st July, 1987 to 31st December, 1987.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
19th March, 1987 ____________________
AK/PG Deputy Chairman