Labour Court Database __________________________________________________________________________________ File Number: CD87692 Case Number: LCR11509 Section / Act: S67 Parties: TECH INDUSTRIES LTD - and - ITGWU |
Claim on behalf of approximately ninety workers for a 27th Wage Round Agreement.
Recommendation:
5. The Court recommends that the Company's offer be amended to
provide an increase of 3 per cent for nine months from 1st March,
1987, a further 3 per cent with effect from 1st December, 1987 and
a final phase of 2 per cent from 1st September, 1988, terminating
on 28th February, 1989 and that the offer so amended be accepted.
Division: CHAIRMAN Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD87692 THE LABOUR COURT LCR11509
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11509
Parties: TECH INDUSTRIES LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of approximately ninety workers for a 27th
Wage Round Agreement.
Background:
2. Tech Industries is a compression moulder of closures for the
cosmetic trade specialising in cap manufacture. The last wage
round agreement expired for the workers here concerned on 28th
February, 1987. The Union submitted a claim for a 10% increase in
pay for 12 months commencing 1st March, 1987 and a phased
reduction in working hours from 40 to 35 without loss of pay. The
Company responded with the following offer:
3% from 1st March, 1987 for 9 months,
2% from 1st December, 1987 for 9 months,
2% from 1st September, 1988 for 6 months.
The agreement to expire 28th February, 1989.
This proposal was rejected by the Union and as no agreement could
be reached the matter was referred to the conciliation service of
the Labour Court. No basis for settlement could be reached at a
conciliation conference held on 10th July, 1987 and on 9th
September, 1987 the matter was referred to the Labour Court for
investigation and recommendation. A Court investigation into the
dispute was held in Waterford on 14th October, 1987.
Union's arguments:
3. (i) The basic rate of pay in the Company is seriously out of
line with the general levels of pay in the area (details
supplied to the Court).
(ii) The present position on the 27th wage round shows an
average annualised increase of 4.9%.
(iii) Concession of the Union's claim will still leave the
workers at the bottom end of the pay league and still
adrift of the norms by 7.4%.
(iv) The average standard working week for manual workers
within Europe is approximately 38 hours. The Union is
seeking the introduction of a 35 hour week for the
workers here concerned phased in over a number of years.
In some European countries the initiative to reduce the
working week came from their Governments as a measure to
deal with unemployment. Such measures should be
introduced in this country.
Company's arguments:
4. (a) The Company depends for its existence on high turnover
in an extremely competitive environment. The
competitive pressures in the industry show no sign of
abating and customers can continue to demand price
reductions.
(b) The Company does not consider its rates to be out of
line (details supplied to the Court).
(c) The future of a labour intensive industry, with its
implications for job security, depends on being able to
offer the products at competitive prices - this in turn
depends on careful control of the Company's cost
structure of which labour costs (excluding
administration) represents 46%.
(d) The Company wishes to make a pay increase but in return
asks for moderation in demands. An increase in the
order of increases in the cost of living would be
appropriate.
Recommendation:
5. The Court recommends that the Company's offer be amended to
provide an increase of 3 per cent for nine months from 1st March,
1987, a further 3 per cent with effect from 1st December, 1987 and
a final phase of 2 per cent from 1st September, 1988, terminating
on 28th February, 1989 and that the offer so amended be accepted.
~
Signed on behalf of the Labour Court
4th November, 1987 John M Horgan
RB/PG --------------
Chairman