Labour Court Database __________________________________________________________________________________ File Number: CD87668 Case Number: LCR11492 Section / Act: S67 Parties: ANVIL TRADING LTD - and - ITGWU |
Claim, on behalf of five workers for an increase in pay under the 26th wage round.
Recommendation:
1988
Division: CHAIRMAN Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD87668 THE LABOUR COURT LCR11492
CC87564 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11492
Parties: ANVIL TRADING LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, on behalf of five workers for an increase in pay under
the 26th wage round.
Background:
2. The Company operates a hardware shop in Bray, Co. Wicklow.
The 25th wage round expired on 31st March, 1987. The weekly rates
of pay of the five workers are as follows:-
Worker 1 - 9 years' service #126
Worker 2 - 8 years' service #121
Worker 3 - 3 years' service # 76
Worker 4 - 7 years' service (part-time) # 35
Worker 5 - 5 years' service (part-time) # 63
In the course of local level negotiations the Union sought a #10
increase from 1st April, 1987 for twelve months. The Company
stated that it was not in a position to make an offer at that
time. The matter was referred on 1st April, 1987, to the
conciliation service of the Labour Court and a conciliation
conference took place on 22nd April, 1987. No agreement was
reached at this conference. However, at a subsequent local level
meeting in August, 1987 management offered a 3% increase from 1st
August, 1987 ( a four month pay pause), the agreement to expire on
31st July, 1988. The Union rejected this offer and the matter was
referred to a full hearing of the Labour Court. The hearing took
place on 8th October, 1987.
Union's arguments:
3. (i) The current rates of pay are low by comparison with
other employments. A cross section of salary scales
for Sales Assistants was supplied to the Court. This
shows the average rate to be between #97.84 and #146.03
per week. Concession of the #10.00 increase offered
would still leave the highest rate in this Company
approximately #10.00 less than the average.
(ii) The Union is not prepared to accept a sixteen month
agreement as offered. It also objects to the inclusion
of a pay pause.
(iii) Management has referred to a disimprovement in the
trading situation. However, over the past two years
staffing has been reduced from eight full-time and one
part-time to three full-time and two part-time.
(iv) Management does not have to incur expenditure on rent
since the premises is owned by the Company.
Company's arguments:
4. (a) In the past two years the wage cost base has increased
by over 25% (over three times the inflation rate).
This was done in the expectation of increased sales.
However, sales during this period actually decreased in
money terms (an even greater decrease in real terms).
(b) The Company must strictly control its costs due to the
continual decline in income which is likely to continue
for the forseeable future. The shop remains closed for
a half day on Wednesdays. The van (which did
collections and deliveries) has had to be sold and has
not been replaced. The outlook for the future is
bleak given the state of the construction industry and
the amount of disposable income available in the
economy.
(c) The increase in the cost of living for the period
covered by this agreement is likely to be approximately
3%. The Company's offer of 3% for twelve months from
1st August, 1987 would mean a gain in real terms for
the employees over the period when adjustments are made
in the tax system.
(d) The priority for the Company is to remain in existence
and try to secure future employment. Therefore at a
time when revenue is decreasing, expenditure must be
controlled. This is not even recognising that a fair
return on investment must be achieved if the long-term
future of the Company is to be secured.
RECOMMENDATION:
5. The Court recommends that wages be increased by #5 per week
for full-time staff and pro rata for part-time staff with effect
from 1st July, 1987. The agreement should last until 31st March,
1988.
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Signed on behalf of the Labour Court
John M Horgan
30th October, 1987 ---------------
A.K./U.S. Chairman