Labour Court Database __________________________________________________________________________________ File Number: CD87210 Case Number: LCR11175 Section / Act: S67 Parties: THOMAS BRADBURY & CO. LTD - and - B.F.W.A.U. |
Claim for the introduction of a bonus scheme.
Recommendation:
6. Having regard to the scale of operation and the market into
which this Company sells, the Court does not consider that an
incentive bonus scheme is appropriate at this time and does not
recommend concession of the claim.
Division: CHAIRMAN Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD87210 THE LABOUR COURT LCR11175
SECTION 67 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11175
Parties: THOMAS BRADBURY & CO. LTD
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
THE BAKERY AND FOOD WORKERS AMALGAMATED UNION
Subject:
1. Claim for the introduction of a bonus scheme.
Background:
2. The Company, which is a family owned business based in Athy,
employs a total of approximately 80 workers. This claim concerns
approximately 21 of those employed in the Confectionery
Department. In October, 1986 the Union claimed the introduction
of a bonus scheme in the Company's Confectionery Department. The
Company rejected the claim.
3. No agreement was reached through local negotiations and on
30th December the matter was referred to the conciliation service
of the Labour Court. A conciliation conference was held on 24th
February, 1987 but no agreement was reached and on 19th March,
1987 the case was referred to the Court for investigation and
recommendation. A Labour Court hearing was held on 14th April,
1987 in Athy.
Union's arguments:
4. (i) Productivity bonuses have been introduced in many
bakeries throughout the country and the Union is seeking
the introduction of a bonus payment in the Confectionery
Department.
(ii) Bakers/Confectioners serve four years apprenticeship at
the end of which they receive basic rate of pay which is
#120.96 at present. This is the agreed rate of pay
negotiated under the Joint Industrial Council for the
Bakery and Flour Confectionery Industry. The rates of
pay of other workers in the Confectionery Department are
also in line with the JIC rates. Because of the low
rate of pay for workers in the Confectionery Department,
the Union's claim should be conceded.
(iii) A bonus payment already applies in the Bread Department.
(iv) Bonus payments elsewhere in the Industry vary from 12.50%
to 20% of the basic rate of pay. A scheme along these
lines should be introduced.
Company's arguments:
5. (a) The Company has experienced serious difficulties over
the last number of years. Total employment in the
Company has been halved in the last four or five years.
(b) In an effort to ensure its survival the Company, which
had been primarily retail, decided to increase its
wholesale business substantially. The situation now is
that the Company's business is practically all
wholesale. However, the wholesale business operates on
very low margins and the volumes are very low as it is
only developing.
(c) A performance bonus scheme quite simply would not be
compatible with the type of business the Company is
trying to develop. The Company is concentrating on high
quality hand finished goods. In addition, the
introduction of a bonus scheme would have substantial
knock-on implications in all other areas of the Company.
Recommendation:
6. Having regard to the scale of operation and the market into
which this Company sells, the Court does not consider that an
incentive bonus scheme is appropriate at this time and does not
recommend concession of the claim.
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Signed on behalf of the Labour Court
John M. Horgan
21st May, 1987 ----------------
TO'M/PG Chairman