Labour Court Database __________________________________________________________________________________ File Number: CD87750 Case Number: LCR11536 Section / Act: S67 Parties: RIMA PHARMACEUTICALS LTD - and - ATGWU |
Claim by the Union on behalf of approximately 35 workers for an increase in pay under the 27th Wage Round.
Recommendation:
5. The Court recommends that the proposals for a 27th Round
Agreement be amended to provide for -
(a) a 3% wage increase from 1st July, 1987, to 30th
November, 1987, and
(b) a 2% wage increase from 1st December, 1987, to 30th
June, 1988.
The Court further recommends that discussions should take place
between the parties not later than 1st September, 1988, regarding
the introduction of an Incentive Bonus Scheme.
Division: Mr Fitzgerald Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD87750 THE LABOUR COURT LCR11536
CC871205 INDUSTRIAL RELATION ACTS, 1946 TO 1976
RECOMMENDATION NO. 11536
PARTIES: RIMA PHARMACEUTICALS LIMITED
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim by the Union on behalf of approximately 35 workers for
an increase in pay under the 27th Wage Round.
Background:
2. The Company was established in 1984, and is engaged in the
manufacture and packaging of pharmaceutical products, mainly for
export to the British market. The 26th Wage Round expired on 30th
June, 1987, and the Union lodged a claim for a 15% increase for 12
months and the early implementation of an Incentive Bonus Scheme.
Following negotiations between the parties, the Company made an
offer of 7% in 3 phases over 18 months, as follows -
1st July, 1987, 2.5% increase,
1st January, 1988, 2% increase,
1st July, 1988, 2.5% increase,
Agreement to end on 31st December, 1988.
This offer was rejected by the Union which claims a 7% increase in
one phase for 12 months. On 29th July, 1987, the matter was
referred to the conciliation service of the Labour Court. At a
conciliation conference on 10th September, 1987, the parties
agreed to consider the following proposal for a 7% increase over
18 months in three phases -
1st July, 1987, 3% increase,
1st January, 1988, 2% increase,
1st July, 1988, 2% increase,
Agreement to end on 31st December, 1988.
The Company also agreed to discuss the staff training programme
with the Union with a view to having a fully trained workforce as
soon as practicable and also agreed that the parties would meet
before the end of the agreement to fully discuss the question of
an Incentive Bonus Scheme. However, the Union members rejected
these proposals and on 6th October, 1987, the issue was referred
to the Labour Court for investigation and recommendation. A Court
hearing took place on 3rd November, 1987, in Thurles.
Union's arguments:
3. (a) The Union regards its claim as reasonable and
justified having regard to increases generally in the
industry, the low rates paid by the Company, little
extra earnings from overtime or shift work and the
lack of any other formal productivity/incentive
payment.
(b) The introduction of a bonus scheme would be of benefit
to both the workers and the Company. The workers
would receive increased earnings whilst the Company
would benefit from increased production.
(c) The Union is prepared to accept a one phase increase
of 5% for a period of 12 months, terminating on 30th
June, 1988, in settlement of the 27th Wage Round.
Company's arguments:
4. (a) None of the Company's workforce have previous
experience in the pharmaceutical industry and very few
had previous experience in any factory environment.
Despite this, the Company has given increases
totalling 23.5% since September, 1984, when the
Company was established. This included a single phase
increase of 10% in respect of the 26th Wage Round.
(b) The Company is involved in the manufacture of generic
pharmaceuticals for the export market, which means
that all sales have to be extremely competitive with
marginal contributions towards costs. This type of
operation bears no relation to that of the larger
multi-nationals or with local generic companies with
large home market sales.
(c) When the Company was established, losses for a period
of 5 years were envisaged. However, losses have
proved higher than anticipated. (Details provided to
the Court). In view of this, the Company originally
sought a pay pause, however, as a result of
discussions with the Union, the Company came up with
an offer which was rejected. In view of the failure
to resolve the matter, the Company is now reverting to
its original proposal as follows -
Pay pause till 31st December, 1987,
2% increase from 1st January, 1988,
2.5% increase from 1st July, 1988,
Agreement to end on 31st December, 1988.
RECOMMENDATION:
5. The Court recommends that the proposals for a 27th Round
Agreement be amended to provide for -
(a) a 3% wage increase from 1st July, 1987, to 30th
November, 1987, and
(b) a 2% wage increase from 1st December, 1987, to 30th
June, 1988.
The Court further recommends that discussions should take place
between the parties not later than 1st September, 1988, regarding
the introduction of an Incentive Bonus Scheme.
~
Signed on behalf of the Labour Court
19th November, 1987 Nicholas Fitzgerald
B.O'N./P.W. Deputy Chairman