Labour Court Database __________________________________________________________________________________ File Number: CD87441 Case Number: LCR11454 Section / Act: S67 Parties: CHRISTOPHER HUET LTD. - and - ITGWU NO.2;ITGWU NO.14 |
Claim, by the Union on behalf of 23 workers, for an increase in wages under the 26th Wage Round.
Recommendation:
5. The Court, having regard to the submissions of the parties and
the financial information supplied to it by the Company,
recommends that an increase of 3% be applied with effect from 1st
October, 1987, for a period of 12 months.
Division: CHAIRMAN Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD87441 THE LABOUR COURT LCR11454
CC87673 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11454
PARTIES: CHRISTOPHER HUET LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, by the Union on behalf of 23 workers, for an increase
in wages under the 26th Wage Round.
Background:
2. On 31st March, 1987, the 25th Wage Round Agreement between the
parties expired and on 9th April, 1987, the Union outlined, to the
Company, the following claims -
- 12 month agreement, no pay pause and an increase of 10%
(or #15 min per week).
- Shortening of working week to 37.5 hours.
- Increase in annual leave from 20 to 21 days.
- Reduction of scales for stores and counter personnel.
The Company rejected the claims on the basis of its serious
financial position. Business activity had declined at such a rate
that losses were incurred for 1985 and 1986. In September, 1986,
it was necessary for the Company to enter into a rationalisation
programme in an effort to secure the Company's future. This
resulted in the redundancy of 16 workers and unless trading
improves the Company said there may be further redundancies. For
this reason the Company wanted a six month pay pause, till
September, 1987, in order to assess the situation. On 23rd April,
the matter was referred to the conciliation service of the Labour
Court. As no agreement was reached at a conciliation conference
held on 29th May, 1987, the dispute was referred to the Labour
Court for investigation and recommendation. A Court hearing took
place on 10th July, 1987.
Union's arguments:
3. (a) The manufacturing problems that occurred during the
last year have now been solved and the Company have
said that it expects the situation to improve. The
Union also feels that the Company is trying to impose
a pay freeze because it has reached agreement with its
non-unioised employees on a pay freeze.
(b) Research has shown that two thirds of all 26th Round
settlements have been for a 12 month period. Pay
pauses have not been a major feature and where there
has been one, payment in lieu has been negotiated.
(c) Wage increases under the 26th Round averaged 6.8% over
13.7 months. Workers in this Company can justifiably
argue for an increase above the norm because of the
low basic rate and scales.
(d) The Union, in line with the Irish Congress of Trade
Unions policy, seeks a shorter working week. This is
a social development to improve the workers'
conditions of employment and will hopefully help
create extra employment in the country.
(d) The Union seeks the concession of one day's additional
leave in an attempt to bring the workers' conditions
of employment into line with the development to
increase holidays beyond 20 days annual leave.
(f) Currently the counter hands and stores personnel have
8 point pay scales. The Union regards these scales as
abysmally low (the maximum point is 20% below the
general operative rate) and seeks their reduction to 5
points, with the subsequent assimilation of the three
workers effected by the adjustment. The cost of
implementing this concession is minimal and there
would be no knock-on effects.
Company's arguments:
4. (i) The Company believes that the Union are not facing the
reality of the current difficulties and rejects that
there is any need for a reduction in the scales for
stores and counter personnel.
(ii) The past year has been very difficult for the Company.
A number of large and reliable companies drastically
reduced their purchases from the Company. Similarly
private motorists have been reducing their purchases.
At the begining of the year the Company almost ceased
to trade.
(iii) The position has improved, however by May, 1987,
revised sales targets figures were 10% down on April,
1987.
(iv) The business is fragmented, disjointed and very
uncertain at the present time. It will take some time
for a pattern to emerge upon which a more accurate
analysis can be made. It was against this background
that the Company requested the Union to wait until
September, 1987, before entering into negotiations
because by that time the Company would have positive
results from its restructuring plan upon which to make
a judgement as to what labour increases it can allow.
RECOMMENDATION:
5. The Court, having regard to the submissions of the parties and
the financial information supplied to it by the Company,
recommends that an increase of 3% be applied with effect from 1st
October, 1987, for a period of 12 months.
~
Signed on behalf of the Labour Court
7th October, 1987 John M. Horgan
B.O'N./P.W. Chairman