Labour Court Database __________________________________________________________________________________ File Number: CD87717 Case Number: LCR11490 Section / Act: S67 Parties: BOART HARD METALS - and - ITGWU;AEU;NEETU |
Claim for a wage increase under the 27th wage round.
Recommendation:
7. The Court is of the opinion that the terms of settlement set
out in the Industrial Relations Officer's letter of 22nd July,
1987 are fair and reasonable in the circumstances and recommends
that they be accepted in settlement of the Unions' claim.
Division: Mr O'Connell Mr Collins Mr O'Murchu
Text of Document__________________________________________________________________
CD87717 THE LABOUR COURT LCR11490
CC871045
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11490
Parties: BOART EUROPE LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
NATIONAL ELECTRICAL ENGINEERING TRADE UNIONS
AMALGAMATED ENGINEERING UNION
Subject:
1. Claim for a wage increase under the 27th wage round.
Background:
2. The Company, which is engaged in the manufacture of percussive
rock drilling equipment for world markets, employs approximately
170 workers at present. The 26th wage round agreement terminated
on 31st December, 1986. The Unions claimed a wage increase of 8%
over twelve months. The Company offered a 25% wage increase in a
twelve month agreement commencing with a three month pay pause.
Local negotiations took place in the period up to the end of June,
1987 but no agreement was reached.
3. On 3rd July, 1987 the matter was referred to the conciliation
service of the Labour Court. Conciliation conferences were held
on 9th and 22nd July, 1987. Arising from the second conciliation
conference settlement terms emerged, which the parties agreed to
recommend for acceptance (see appendix). The settlement terms,
which provided a 3% wage increase from 1st January, 1987 and a 1%
increase from 1st October, 1987, were rejected by the workers.
4. A further conciliation conference took place on 15th
September, 1987 but no agreement was reached. On 24th September,
1987 the case was referred to the Court for investigation and
recommendation. A Labour Court hearing was held on 29th
September, 1987 in Limerick.
Unions' arguments:
5. (i) The workers are completely frustrated and disillusioned
with the slow progress made in negotiating the 27th
wage round. Their previous agreement terminated at the
end of 1986, over nine months ago.
(ii) There is very little difference between the sides at
present. The Unions have made suggestions for
settlement but there has been no response from the
Company.
(iii) The settlement terms proposed as a result of the
conciliation conference on 22nd July, 1987 were
rejected by the workers. There needs to be some
improvement to make those terms acceptable.
(iv) It has been traditional that agreements in the Company
have been of twelve months duration. The workers do
not want to see any worsening of that situation.
(v) The Unions are reasonable in seeking the norm for the
area i.e. 4% increase over twelve months. This
increase should now be conceded.
Company's arguments:
6. (a) The settlement proposals should be accepted because the
workers have very good conditions of employment. In
addition the current offer, together with the payment
of the annual increment will mean an increase of 7% for
most employees in 1987.
(b) The offer is in excess of inflation.
(c) The level of increase granted to employees over the
years 1975 - 1986 has been well above the level of
inflation for the same period.
(d) Since labour costs form a large part of the Company's
overall costs, its competitiveness has been eroded due
to the high level of wage increases.
(e) The decline in the value of the U.S. dollar has
increased the pressure and the Company is involved in a
constant battle to retain its market share and
profitability in a contracting market.
RECOMMENDATION:
7. The Court is of the opinion that the terms of settlement set
out in the Industrial Relations Officer's letter of 22nd July,
1987 are fair and reasonable in the circumstances and recommends
that they be accepted in settlement of the Unions' claim.
~
Signed on behalf of the Labour Court
John O'Connell
__29th___October,__1987. ___________________
T. O'M / J. C. Deputy Chairman
APPENDIX I
Settlement proposals of 22nd July, 1987
In relation to to-day's Conciliation Conference concerning the
above, I wish to confirm the following settlement proposals which
representatives of both parties agreed to recommend for
acceptance:
1. 3% increase from 01.01.'87.
2. 1% increase from 01.10.'87.
3. Agreement to terminate 31.01.'88.
4. The duration of the Agreement will not constitute a
precedent in relation to any other future wage
negotiations.
5. No additional claims of a cost increasing nature for
the duration of the Agreement.
6. The procedures as laid down in the existing House
Agreements will continue to be complied with.