Labour Court Database __________________________________________________________________________________ File Number: CD87181 Case Number: LCR11132 Section / Act: S67 Parties: WOCO CARRICK-ON-SHANNON - and - ITGWU |
Claim on behalf of 98 workers for an increase in wages under the 26th wage round.
Recommendation:
5. The Court having considered the submissions from both parties
recommends the following increase in respect of the 26th wage
round claim:
4% from 1st January, 1987 and a further 2.50% from 1st
July, 1987. The agreement to terminate on 31st
December, 1987.
Division: Ms Owens Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD87181 THE LABOUR COURT LCR11132
CC87323 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11132
Parties: WOCO INDUSTRIAL COMPONENTS LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of 98 workers for an increase in wages under
the 26th wage round.
Background:
2. The Company is involved in injection moulding in both rubber
and plastic for the automobile (95%) and electrical (5%)
industries. It's finished product is exported. The 25th wage
round expired on 31st December, 1986. The Union on 15th January,
1987, served a claim on the Company for an increase of #25 per
week to incorporate an out of line claim. On the 24th February
the Company responded with an offer of, a two month pay pause an
increase of 3% from 1st March, 1987 for a period of 8 months and
an increase of 3% from 1st November for a period of 8 months. The
agreement to commence on 1st January, 1987 and to terminate on
30th June, 1988, with a clause seeking full co-operation and no
claims of a cost increasing nature to be served on the Company for
the duration of the agreement. This offer was rejected by the
Union and the matter was referred to the conciliation service of
the Labour Court on 25th February, 1987. A conciliation
conference was held on 3rd March, 1987. As no agreement was
possible both parties agreed to refer the matter to the Labour
Court for investigation and recommendation. A Labour Court
hearing was held in Carrick-On-Shannon on 31st March, 1987.
Union's arguments:
3. (a) The workers wages are too low. This can be best
demonstrated by comparing our members basic weekly wage
of #135 with the average industrial wage of #209 or by
looking at the rates of pay which would apply in other
comparable plants (details supplied to the Court).
(b) It is important for the workers to receive a realistic
increase in wages if they are to improve their standard
of living which is their objective.
(c) The workers have made a major contribution to the
Company's competitiveness which has been a major factor
in the developing it's share of the market.
Company's arguments:
4. (i) The Company has not received any increase over the past
2 years for it's finished product. In order for the
Company to get new business, it has to reduce it's
prices in a very open and competitive market in
Germany. Also all raw material is imported. For every
1% increase in wages it costs the Company #10,000 per
annum.
(ii) The Company has received a substantial loan from the
parent company in order to purchase raw materials.
This has to be paid back. There are other short term
loans outstanding. At present the Company has to rely
very much for assistance from it's parent company if it
is to continue to operate in Ireland.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends the following increase in respect of the 26th wage
round claim:
4% from 1st January, 1987 and a further 2.50% from 1st
July, 1987. The agreement to terminate on 31st
December, 1987.
~
Signed on behalf of the Labour Court
Evelyn Owens
___4th____May,____1987. ____________________
M. D. / M. F. Deputy Chairman