Labour Court Database __________________________________________________________________________________ File Number: CD87646 Case Number: LCR11474 Section / Act: S67 Parties: GERARD WHELAN & SONS LTD - and - ITGWU |
Claims under the 26th wage round for:- (a) wage increase; and (b) increased annual leave.
Recommendation:
Claim (a) - wage increase:
6. The Court recommends an increase of #3 per week with effect
from 1st April, 1987 and a further two per cent from 1st October,
1987. The agreement should end on 31st March, 1988.
Claim (b) - increased annual leave:
7. The Court recommends concession of Good Friday as an extra
day's annual leave from 1988.
Division: CHAIRMAN Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD87646 THE LABOUR COURT LCR11474
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11474
Parties: GERALD WHELAN AND SONS LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claims under the 26th wage round for:-
(a) wage increase; and
(b) increased annual leave.
Background:
2. The Company is engaged in the importation, sale and
distribution of footwear and employs a total of twenty six people.
Its sister company is engaged in the manufacture of footwear and
is dependent on the Company's sales and distribution network.
3. On 31st March, 1987 the 25th wage round expired for the
workers here concerned. The Union served a claim on the Company
for a 15% increase in wages and an additional day's annual leave
from 1987. The Company offered an increase of #2.75 in basic
rates for 12 months. This was unacceptable to the Union and the
matter was referred to the conciliation service of the Labour
Court. At a conciliation conference held on 29th July, 1987 the
Company indicated it was willing to offer a #3 increase in basic
rates over 12 months with the possibility of a review in
September, 1987. This was similar to the agreement reached in the
Company's sister company. This offer was not acceptable to the
Union and the matter was referred to the Labour Court for
investigation and recommendation. A Court investigation into the
dispute was held on 30th September, 1987 in Cavan.
Union's arguments:
4. (i) The rates of pay for the workers are among the lowest
rates of workers represented by the Union in the
Cavan/Monaghan area. The Union considers that the
increase claimed will only bring the workers into line
with their colleagues in the area.
(ii) The Company is not labour intensive and as such is not
strictly comparable to its sister company which is
engaged in manufacturing. The Union cannot see that
the Company is at any greater disadvantage in the
market place than any of its competitors.
(iii) The Company is, and always has been, highly profitable.
(iv) The Joint Labour Committee rates were increased by a
minimum of 5% which is better than the Company's offer.
(v) The Union considers that the Company is carrying some
administrative overheads for its sister company.
(vi) With regard to annual leave, the Labour Court
recommended concession of this claim in Recommendation
No. 9609. This Recommendation which concerned a wage
agreement, was rejected by the Company at the time.
The Company is no less profitable now than it was then.
(vii) Twenty days' annual leave has been established as
standard for at least the last four years and there is
no reason why there should be no improvement in that
figure. Most commentators on industrial relations
agree that longer rest periods by way of annual leave
renews and invigorates workers and thus improves the
quality of their work. Other member countries of the
EEC have longer periods of annual leave and more public
holidays.
Company's arguments:
5. (a) There is no justification for separate wage settlements
for this Company and its sister company. Traditionally
settlements have been similar and, by the very nature
of their activities, they are mutually supportive
(details supplied of the Court).
(b) The business environment in which the Company operates
has never been more competitive (details supplied).
The Company's offer is in keeping with tradition and is
the most it can afford under the circumstances.
(c) The financial performance of the Company has
deteriorated sharply over the past year (details
supplied to the Court).
(d) The Union refers to 26th wage round settlements which
were arrived at twelve or more months ago and which do
not reflect the current situation.
(e) There is no evidence to suggest that 21 days' annual
leave is the norm in the shoe industry. The present
level of annual leave is generous compared to levels
in the United States of America.
RECOMMENDATION:
Claim (a) - wage increase:
6. The Court recommends an increase of #3 per week with effect
from 1st April, 1987 and a further two per cent from 1st October,
1987. The agreement should end on 31st March, 1988.
Claim (b) - increased annual leave:
7. The Court recommends concession of Good Friday as an extra
day's annual leave from 1988.
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Signed on behalf of the Labour Court
John M Horgan
19th October, 1987 ----------------
R.B./U.S. Chairman