Labour Court Database __________________________________________________________________________________ File Number: CD87737 Case Number: LCR11519 Section / Act: S67 Parties: FRESE LTD - and - ITGWU |
26th Wage Round.
Recommendation:
5. Having considered the submissions made by the parties the
Court recommends that the Company's offer be amended to
provide for an initial increase of 6% for 15 months followed
by 4% for a further six months and that the offer as amended
be accepted by the workers concerned.
6. The Court further recommends that the conditions attached
with reference to payment by cheque and breaks be accepted.
7. The Court recommends that the Company's offer to chargehands
be accepted.
Division: Mr O'Connell Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD87737 THE LABOUR COURT LCR11519
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11519
PARTIES: FRESE (IRELAND) LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. 26th Wage Round.
BACKGROUND:
2. Frese Ireland is a wholly owned subsidiary of Frese
Metallwerk GMBH, West Germany. The Company was set up in 1978 and
currently employs seventy two full-time workers. The Union, on
behalf of approximately sixty workers, served a claim on the
Company for a 26th wage round agreement, the previous agreement
having expired on 31st March, 1987. The claim was quantified as
follows:-
- basic pay increase of 10%
- the percentage increase to be applied to the Christmas bonus
- a #30 pay increase to chargehands.
The Company rejected this claim and made the following offer:-
- 2% for 12 months followed by 2% for 12 months
- no concession on the Christmas bonus
- increase of #7.50 to chargehands on successful completion of a
special training course.
- payment by cheque
- shiftworkers to clock in and out for teabreak.
This was not acceptable to the Union and, as no agreement could be
reached at local level the matter was referred to the conciliation
service of the Labour Court. At a conciliation conference held on
26th August, 1987 the Company made a final offer as follows:-
- 6% over 15 months
- payment of this 6% on the discretionary Christmas bonus to be
considered.
- chargehands to receive #10 on successful completion of the
upgrading of skills training course, retrospectively in the
case of one worker.
- change in lunch hour to facilitate cashing of cheques
- clocking in and out during shift breaks.
This offer was rejected by the workers concerned. As no further
progress was possible the matter was referred to the Labour Court
for investigation and recommendation. A Court investigation into
the dispute was held in Sligo on 21st October, 1987.
Union's arguments:
3. (i) The workers wage rates are already behind those of
other employments in the area (details supplied to
the Court). A 10% increase represents no more than
#10 for the vast majority of the workers. Failure to
achieve this will place them further behind similar
workers in other employments.
(ii) The Company has enjoyed a continual growth in
production output over the past number of years which
has secured the operation in Manorhamilton. However,
failure to reward the workforce with a reasonable
basic rate of pay will, in the long term, create
difficulties.
(iii) The chargehands not only carry out chargehand duties,
they also perform all machine setting duties and have
supervisory responsibilities over the operators.
Therefore the claim for a #30 increase is justified.
Company's arguments:
4. (a) The Company is prepared to pay 6% over 15 months in
order to bring the wage round in line with the
financial year. However, if the Company was to
consider a 12 month agreement, it could only consider
an increase in line with inflation. The increase
offered more than compensates the workers for increases
in the cost of living for the period of the agreement.
This increase cannot be passed on to the Company's
customers by way of higher prices. Any further
increase would seriously undermine the Company's
ability to compete. The German company is surveying
the labour costs of the Company critically and an
escalation of those costs could result in loss of
assembly work to other more competitive plants.
(b) The Company has at all times endeavoured to give a fair
increase to its employees. This year is no exception.
However it cannot give increases that it cannot afford.
The Company does not accept any argument on the basis
of comparability. This is an offer made by a company
in line with its particular trading position at this
time.
(c) Neither the duties or responsibilities of chargehands
have changed and there is therefore no justification
for an increase. However, the chargehands have been,
or are due to be, sent on a special training course
and, on successful completion of this course, the
Company is prepared to offer a #10 increase. This
would be backdated to the date of completion of the
course in the case of one worker but would not attract
the wage round increase.
(d) The Company has clearly stated that its requirement to
have payment by cheque is purely for security reasons.
In order to facilitate employees to cash their cheque
the Company has offered to change lunch hour for day
workers from 12.00 to 12.30.
(e) Shiftworkers have a 20 minute paid tea break. The
Company has noticed a level of abuse because such tea
breaks are staggered. The institution of a clocking
procedure would allow ease of supervision.
RECOMMENDATION:
5. Having considered the submissions made by the parties the
Court recommends that the Company's offer be amended to
provide for an initial increase of 6% for 15 months followed
by 4% for a further six months and that the offer as amended
be accepted by the workers concerned.
6. The Court further recommends that the conditions attached
with reference to payment by cheque and breaks be accepted.
7. The Court recommends that the Company's offer to chargehands
be accepted.
~
Signed on behalf of the Labour Court.
John O'Connell
12th November, 1987. --------------
R. B. / M. F. Deputy Chairman.