Labour Court Database __________________________________________________________________________________ File Number: CD87751 Case Number: LCR11513 Section / Act: S67 Parties: ARKLOW POTTERY LTD. - and - ITGWU |
Claim on behalf of approximately 150 operatives for a wage increase under the 26th wage round.
Recommendation:
6. The Court recommends that the Company should offer an increase
of 3% on basic rates with effect from the 1st January, 1988 and
that the offer be accepted by the workers concerned in settlement
of their present claim.
Division: Mr O'Connell Mr Collins Mr Walsh
Text of Document__________________________________________________________________
CD87751 THE LABOUR COURT LCR11513
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11513
Parties: ARKLOW POTTERY LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of approximately 150 operatives for a wage
increase under the 26th wage round.
Background:
2. On 9th April, 1987 a Labour Court hearing was held on the
above mentioned claim and the following recommendation issued
(L.C.R. No. 11189 of 15th May, 1987 refers):
"In view of the difficulties still being experienced by the
Company, the Court does not consider it possible to
recommend an increase at present. However, having regard to
the efforts of all concerned to overcome these difficulties,
the Court proposes that it further review the claim in
September and make a specific recommendation in the light of
the Company's performance and prospects as they then
appear".
3. On 4th September, 1987 the Union requested a further hearing
on the claim and this took place on 27th October, 1987.
Union's arguments:
4. (i) The hourly rates of pay of the workers which range from
#1.85 to #3.10 per hour are out of line with other
industries. The average bonus is between #15 and #26
per week.
(ii) At a Union/Management meeting held on 20th October,
1987, the General Manager stated that trading had
improved, the Company had achieved a 33% increase in
exports to the U.S.A. and it was hoped that the Company
would break even before the end of the year. He
further stated that if the trend continued capital
investment would be made by Noritake. The workers
should now receive some increase in wages under the
present wage round.
(iii) The Union previously stated that the considerable
goodwill and flexibility of the workers in the past
would be undermined if no increase was made. If the
Company does not concede a wage increase there will be
a serious breakdown in industrial relations.
Company's arguments:
5. (a) There has been no substantial change in the Company's
position since April and the arguments at that time
remain a fundamental part of the Company's case.
(b) In April, 1987 the Company projected a loss of #215,000
for the year, however this has now been revised to a
loss of #348,000. Non labour costs have increased by
between 3% and 5% in the current year. Noritake head
office requires the Company to achieve a breakeven
situation for the second half of 1987 and will no
longer subsidise the Company. Prices have been
increased to cover cost increases, etc but it is not
possible to assess the impact of this action on sales,
as yet.
(c) Labour costs are 60% of turnover and the Company cannot
sustain any further price increases. Resulting from
previous pay agreements and the introduction of a bonus
scheme the workers have in effect received an increase
of 5% for each of the years 1985, 1986 and 1987. In
the present circumstances no further increase is
feasible or warranted.
RECOMMENDATION:
6. The Court recommends that the Company should offer an increase
of 3% on basic rates with effect from the 1st January, 1988 and
that the offer be accepted by the workers concerned in settlement
of their present claim.
~
Signed on behalf of the Labour Court
John O'Connell
___________________________
Deputy Chairman
9th November, 1987.
U.M./J.C.