Labour Court Database __________________________________________________________________________________ File Number: CD87263 Case Number: LCR11206 Section / Act: S67 Parties: NEWBRIDGE CUTLERY - and - ITGWU |
Claims on behalf of 37 workers under the 26th wage round for (1) an increase in basic pay of 12% for twelve months from 1st January, 1987. (2) Improvement in service pay and (3) an increase of one day in annual leave entitlement giving a total of 21 days annual leave.
Recommendation:
5. The Court has previously indicated its concern for the future
viability of this Company and the need for improved productivity.
However, the Court notes that the final outcome of the
Company/Union negotiations on the 25th wage round which took place
subsequent to the issue of a Labour Court Recommendation did not
deal with the outstanding problem of productivity.
The Court is still of the view that talks should take place, as a
matter of urgency on ways and means of improving productivity.
With regards to the 26th round claim the Court recommends an
increase of 6% from 1st January, 1987 for a period of 12 months
and does not recommend concession of the claims for improvement in
service pay and additional annual leave.
Division: Ms Owens Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
02CD87263 THE LABOUR COURT LCR11206
CC87201 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11206
Parties: NEWBRIDGE CUTLERY LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claims on behalf of 37 workers under the 26th wage round for
(1) an increase in basic pay of 12% for twelve months from 1st
January, 1987. (2) Improvement in service pay and (3) an
increase of one day in annual leave entitlement giving a total of
21 days annual leave.
Background:
2. The Company produces cutlery sets for the home and export
market. The 25th wage round which provided for a phased increase
of 12% over 19 months expired on 31st December, 1986. The Union
lodged the above mentioned claims under the 26th wage round at
that time. At meetings held at local level the Company indicated
they would have to get a commitment regarding productivity before
they could make any offer of an increase. As no progress was
possible the matter was referred to the conciliation service of
the Labour Court on 3rd February, 1987. A conciliation conference
was held on 24th March, 1987. As no agreement was reached both
sides agreed to refer the matter to the Labour Court for
investigation and recommendation. A Labour Court hearing was held
on 28th April, 1987 in Newbridge.
Union's arguments:
3. (a) The workers cannot survive on the basic rate payable
(#127.96 a week) and a substantial improvement is
required if they are to meet the daily demands within
their domestic situations. Also the rates payable are
one of the lowest in the Kildare catchment area
(details supplied to the Court).
(b) The workers have contributed towards higher
productivity through their co-operation in the move to
a new premises, which allowed for a streamlining of the
production process, which in turn led to greater
efficiency and higher output per person. This led to a
reduction in the occasions in which overtime would
arise.
(c) Workers in other sectors within the area who had the
same imposition of low rates of pay have made
significant progress in moving up over the last four
pay rounds.
(d) The Company have over the past number of years, in all
wage negotiations pleaded lack of resources to meet the
above wage demands. They have at all times claimed
that they would not survive if they were to concede a
wage claim. However, despite all these protestations,
the Company has managed to survive, move into new
premises, acquire more modern machinery, and have
invested a half million pounds in 1984, employ a
financial controller, improve their productivity and as
far as our members can see have a continuous demand for
their product.
Company's arguments:
4. (i) As part of it's examination for the 23rd wage round
the Court engaged the Irish Productivity Centre to
give an independent assessment. The Court then in
the light of the information obtained recommended
that as an initial step towards improved productivity
that the workers agree to co-operate in achieving the
target output nominated by the Company, as a matter
of urgency, as it is clear that any future relative
improvement in the current wage rates will rely
entirely on increased productivity. The Company's
argument today is precisely that missing output.
(ii) The Labour Court also recommended under the 25th wage
round that a further 2.50% increase in basic pay be
granted once productivity had increased by 25%. This
increase was never achieved. The Company is
reluctant to make any offer as there has been no
increase in productivity. Over the last few wage
rounds the Company paid generous increases in good
faith on the expectation that productivity would be
increased.
(iii) Fundamentally unless the improvement in productivity
is achieved there is no future for the Company, and
Newbridge Cutlery will follow the demise of companies
unable to meet the competition in the market place.
RECOMMENDATION:
5. The Court has previously indicated its concern for the future
viability of this Company and the need for improved productivity.
However, the Court notes that the final outcome of the
Company/Union negotiations on the 25th wage round which took place
subsequent to the issue of a Labour Court Recommendation did not
deal with the outstanding problem of productivity.
The Court is still of the view that talks should take place, as a
matter of urgency on ways and means of improving productivity.
With regards to the 26th round claim the Court recommends an
increase of 6% from 1st January, 1987 for a period of 12 months
and does not recommend concession of the claims for improvement in
service pay and additional annual leave.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___________________
22nd_May,______1987.
M. D. / M. F. Deputy Chairman.