Labour Court Database __________________________________________________________________________________ File Number: CD87667 Case Number: LCR11451 Section / Act: S67 Parties: TEXPRINT - and - IPU |
Claim for an increase of pay on behalf of 27 workers under the 26th wage round.
Recommendation:
5. The Court having considered the submissions made by the
parties and having regard to the Company's present difficulties,
recommends that the Union accept the Company's final offer of 4%
as made at conciliation.
Division: Mr Fitzgerald Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87667 THE LABOUR COURT LCR11451
CC871039 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11451
Parties: TEXPRINT LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH PRINT UNION
Subject:
1. Claim for an increase of pay on behalf of 27 workers under the
26th wage round.
Background:
2. The Company employs 27 people in its factory in Baldoyle and a
further 5 people in its Kilkenny factory. The Company is engaged
in the printing of inks on to fabrics. The 25th wage round
expired on 31st March, 1987. The Union in June, 1987 lodged a
claim for an increase of 12% for 12 months effective from 1st
April, 1987. The Company rejected this claim and offered an
increase of 3% for 12 months. Following further negotiations the
Union amended their claim for an increase of 4% in basic pay for a
period of 6 months followed by a further increase of 2% for 6
months. As no agreement was possible the matter was referred to
the conciliation service of the Labour Court on 29th June, 1987.
A conciliation conference was held on 31st July, 1987 at which the
Company adjusted its offer to an increase of 4% for twelve months.
The Union brought the offer back to its members without a
recommendation. The offer was subsequently rejected and both
parties agreed to a referral to the Labour Court for investigation
and recommendation. A Court hearing was held on 25th September,
1987.
Union's arguments:
3. (a) The workers concerned are among the lower paid in the
industry. The rates of pay ranges from #80 a week (2
workers) to a top rate of #148 a week (2 workers). The
majority of workers earn between #102 and #130 a week.
It would be wrong for these workers to come out at the
lower end of the scale for the 26th wage round and
thereby worsen their low pay status. The average
increase received in industry was 6% over a 12 month
period for the current wage round and the workers
concerned are deserving of above this norm.
(b) It is accepted that the Company are experiencing
trading difficulties at this time and the Union is
co-operating with them in the matter of redundancy
which is geared to correct this problem. It would be
unfair of the Company to also use this problem as a
means of depressing the wage round and thereby commence
a move back to an earlier situation where they ran a
successful Company and paid deplorably low wages to
their workforce.
(c) The Company no doubt will argue that heavy losses were
incurred by them last year which were only discovered
after a second audit conducted this year. The
situation as far as the Union is aware is that the
present rationalisation programme being pursued by the
Company is geared to bring the Company back into
profits this year. The history of the Company is that
is has successfully developed over the years and must
have yielded substantial profits in the other years of
its existence.
Company's arguments:
4. (i) The Company is experiencing difficult trading problems
at present and has incurred considerable losses over
the past year (details supplied to the Court). There
is little hope that the Company will recoup these
losses.
(ii) The home market business has also been extremely low
and is largely accounted for by the drop in consumer
spending. The Company has had to take on a number of
low margin contracts in order to maintain the existing
employment levels. Unfortunately this is no longer
possible as the Company can no longer afford such work.
(iii) The Company has had discussions with the Union on a
rationalisation programme to secure the future
viability of the Company. A redundancy package in
which 7 workers will be made redundant from 2nd
October, 1987 has been agreed. The Company is in a
survival situation at present and its offer of an
increase of 4% for 12 months is fair and reasonable in
the present circumstances.
RECOMMENDATION:
5. The Court having considered the submissions made by the
parties and having regard to the Company's present difficulties,
recommends that the Union accept the Company's final offer of 4%
as made at conciliation.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
_________________________
Deputy Chairman.
6th October, 1987.
M.D./J.C.