Labour Court Database __________________________________________________________________________________ File Number: CD87640 Case Number: LCR11530 Section / Act: S67 Parties: FALCARRAGH KNITWEAR LTD - and - ITGWU |
Claim for a wage increase under the 26th wage round.
Recommendation:
5. The Court, having regard to the current financial state of the
Company and the period since the last increase in wages,
recommends that there be an increase of 3 percent with effect from
1st January, 1988.
Division: CHAIRMAN Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87640 RECOMMENDATION NO. LCR11530
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: FALCARRAGH KNITWEAR LIMITED
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for a wage increase under the 26th wage round.
BACKGROUND:
2. The claim concerns twenty eight workers employed by the
Company, which manufactures machine knitted garments in the
Industrial Estate, Falcarragh, Co. Donegal. The present rates of
pay are #95.83 for eleven workers and #90.67 for another seventeen
workers. The Union is claiming that the wage rates should be
substantially increased and that they should be paid the hosiery
and knitwear Joint Industrial Council (J.I.C.) rate as a minimum
rate. The Company pleaded inability to pay any wage increase
during 1986. It sought a deferment of the matter until March,
1988. This was not acceptable to the Union. No agreement was
reached at local level and on 25th June, 1987 the matter was
referred to the conciliation service of the Labour Court. A
conciliation conference was held on 28th July, 1987 but no
agreement was reached. On 24th August, 1987 the case was referred
to the Court for investigation and recommendation. A Labour Court
hearing was held on 9th September, 1987 in Letterkenny and at the
Court's request the Company's draft accounts were submitted on 9th
October, 1987.
UNION'S ARGUMENTS:
3. 1. The Union and the workers are realistic and responsible
in recognising the trading difficulties in the industry.
However there is no incentive for the workers with a lowering
of morale as a result of wage rates being at a standstill over
a considerable time.
2. It is difficult for our members to remain convinced that
they must always be the poor relation when a protective
clothing factory nearby have paid the Women's Clothing &
Millinery rate consistently over the past number of years.
The current basic rate in a protective clothing factory on the
Bunbeg Industrial Estate is #107.20.
3. The gap in the Company's wages in relation to the
clothing, hosiery and knitwear industries in general should be
bridged. The Union is willing to accept a phasing in period
in order to give breathing space to the Company.
COMPANY'S ARGUMENTS:
4. 1. The Company is unable to pay any wage increase in 1987
due to its financial situation.
2. The Company has incurred financial losses for 1985, 1986
and are still operating at a loss situation. For the last 18
months the U.S. Dollar has been weak, traditionally 60% of the
Company's sales turnover was to the U.S. market. The
Company's base in the American market has almost collapsed
with present sales turnover to the U.S. at 22%. The knitwear
industry nationally has suffered from the weak dollar.
3. The Company's base has been affected by the practice of
some Irish companies and import agents of selling knitwear at
very low prices. This practice is known as dumping.
4. The Company's record books at present are full to the end
of October, 1987 with nothing on hand after that. The buying
season for Autumn 1988 begins at the end of January, to the
end of March, 1988. It is hoped that business will improve to
enable the Company to negotiate the wage increase at a later
date. The Company is trying to develop markets in Europe.
5. The efficiency performance of some employees is not up to
standard required. This effects the productivity and sales
turnover of the Company as well as effecting the actual
employees concerned. High absenteeism (details supplied to
the Court) has also put a strain on Company's finances i.e.
lost production and sales.
6. The Company partly subsidises any employee who wishes to
travel by factory bus to work. The amount per employee per
week is #4.13.
RECOMMENDATION:
5. The Court, having regard to the current financial state of the
Company and the period since the last increase in wages,
recommends that there be an increase of 3 percent with effect from
1st January, 1988.
~
Signed on behalf of the Labour Court
John M. Horgan
___________________
16th November, 1987
T. O'M./J.C. Chairman.