Labour Court Database __________________________________________________________________________________ File Number: CD87722 Case Number: LCR11515 Section / Act: S67 Parties: C.B. PACKAGING LTD - and - I.P.U. |
Claim on behalf of 9 workers for an increase in pay under the 26th wage round and the matter of rationalisation as required by the Company.
Recommendation:
The Court recommends that the Union be given the option of
accepting either the Company's offer of 16th February, 1987 or the
percentage increases in the weekly rates as provided for in the
IPF agreement, i.e. following a pause of a month, an increase of
4% for seven months and a further increase of 2% for six months.
The Court does not recommend a reduction in hours. On acceptance
of either option the parties should enter into meaningful
negotiations on rationalisation.
Division: CHAIRMAN Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD87722 THE LABOUR COURT LCR11515
CC87898 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11515
Parties: C.B. PACKAGING LTD
(Represented by the Federated Union of Employers)
and
IRISH PRINT UNION
Subject:
1. Claim on behalf of 9 workers for an increase in pay under the
26th wage round and the matter of rationalisation as required by
the Company.
Background:
2. The Company is engaged in the manufacture of paper sacks and
nine of its employees are members of the Irish Print Union. An
agreement between the Irish Printing Federation (IPF) and the
Irish Print Union under the 26th wage round provided for a one
month pay pause, a 4% increase for seven months, and a further 2%
increase for six months. A shorter working week of 39 hours for
day workers and 38.50 hours for shift workers was also agreed. The
Union sought to have the terms of this agreement applied to its
members in C.B. Packaging Limited, under the 26th round. The
Company, on 16th February, 1987, offered the terms agreed with its
other employees, i.e. a 5% increase for 12 months from 1st
October, 1986, followed by a further 5% for 12 months and a
commitment to commence negotiations on rationalisation measures.
The Union was not prepared to discuss any rationalisation measures
prior to agreement on the question of pay. The issues were
referred to the conciliation service of the Labour Court on 4th
June, 1987 and a conciliation conference took place on 21st
September, 1987, the earliest date suitable to the parties. No
agreement was reached however and the issues of pay and
rationalisation were referred to a Labour Court hearing. The
hearing took place on 19th October, 1987.
Union's arguments:
3. (i) Labour Court Recommendation No. 10,062 recommended
concession of the Union's claim for payment of the
"rotary rate" to its members in this Company. This is a
rate for rotary printers and is defined under Irish
Printing Federation Agreements. In order to maintain
the rotary rate the terms of the IPF agreement must be
conceded to these workers.
(ii) These workers have been offered terms agreed with other
Unions. The Irish Print Union had no involvement in the
negotiations which led to this agreement.
(iii) The Union is prepared to enter into talks on
rationalisation when the question of pay has been
agreed.
Company's arguments:
3. (a) The Company is experiencing a decline in volume due to
home and foreign competition, recession in the building
and agricultural sectors and increased utilisation of
bulk deliveries by customers. It has therefore been
necessary to take cost cutting measures. Agreement has
been reached with the majority of employees on a pay
deal which includes rationalisation measures. It is
currently a matter of urgency to reduce costs in the
printing department.
(b) The Company rejects any contention that Labour Court
Recommendation No. 10,062 can be interpreted as meaning
that the workers are entitled to pay and conditions in
line with Irish Printing Federation Agreements. The
Recommendation refers to an isolated case. The IPF
caters exclusively for employments in the printing
industry. This Company is engaged in manufacturing and
simply employs a small number of printers.
(c) The printing employees have signed agreements linking
their terms and conditions to the factory. This has
been the custom and practice for many years.
(d) The printers here concerned were members of the Irish
Transport and General Workers' Union for many years.
The fact that they, a small minority of employees, have
now joined another Union cannot force the employer to
adopt terms and conditions set out for another industry.
(e) The Company considers that the terms on offer are
generous in the current climate.
Recommendation:
The Court recommends that the Union be given the option of
accepting either the Company's offer of 16th February, 1987 or the
percentage increases in the weekly rates as provided for in the
IPF agreement, i.e. following a pause of a month, an increase of
4% for seven months and a further increase of 2% for six months.
The Court does not recommend a reduction in hours. On acceptance
of either option the parties should enter into meaningful
negotiations on rationalisation.
~
Signed on behalf of the Labour Court
11th November, 1987 John M Horgan
AK/PG --------------
Chairman