Labour Court Database __________________________________________________________________________________ File Number: CD87555 Case Number: LCR11384 Section / Act: S67 Parties: KLOCKNER MOELLER - and - ITGWU |
Claims for: (a) a two grade clerical structure with grade 1 on #110 per week x 10 to #185 per week, grade 2 on #121 per week x 10 to #203 per week plus appropriate assimilation for 4 clerical workers, (b) a pay increase for 2 electrical tracer/draughtsmen to #160 per week and (c) pay increase for 2 drivers/storemen to #150 per week.
Recommendation:
5. The Court having considered the submissions from both parties
recommends as follows:
(1) Clerical Employees - The introduction of a single
salary scale with a minimum of #110 progressing by
annual increments of #7.50 to a maximum of #200. The 4
clerical staff involved in the claim to be assimilated
into the scale at the following points.
Existing Salary Recommended Entry Point
on new Scale
129.51 #140.00
135.02 147.50
143.21 155.00
189.11 200.00
Effective date - 1/4/87
Annual Increment payable 1st January.
(2) Electrical/Draughtsmen/Drivers/Forklift/Stores
Personnel. The existing basic rate be increased by #12
per week from 1/4/87.
~
Signed on behalf of the Labour Court
Evelyn Owens
____________________
Deputy Chairman.
3rd September, 1987.
M.D./M.F.
Division: Ms Owens Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87555 THE LABOUR COURT LCR11384
CC87167 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11384
PARTIES: KLOCKNER MOELLER (IRELAND) LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claims for:
(a) a two grade clerical structure with grade 1 on #110 per
week x 10 to #185 per week, grade 2 on #121 per week x
10 to #203 per week plus appropriate assimilation for 4
clerical workers,
(b) a pay increase for 2 electrical tracer/draughtsmen to
#160 per week and (c) pay increase for 2
drivers/storemen to #150 per week.
BACKGROUND:
2. The Company is engaged in the assembly and distribution of
electrical switchgear from its main premises in Dublin and depot
in Limerick. The total number employed is approximately 20. The
claim for the introduction of clerical scales was first lodged
with the Company in 1984 and was resolved pro-tem on the basis of
a #4 increment per person exclusive of the wage round effective
from 1st January, 1984 and without prejudice to the claim being
dealt with in 1985. As business was bad the claim was not raised
again until 1986. The claim was rejected by the Company, and the
matter was referred to the conciliation service of the Labour
Court. A conciliation conference was held in July, 1986 at which
no progress was made. Subsequently 4 non clerical workers joined
the Union and a joint claim (as outlined at (1) above) was lodged.
The present pay rates of the workers concerned are outlined as
follows and are inclusive of the 25th wage round:
(Base) Clerical Assistant _ #129.81
" Receptionist/Telephonist - #135.02
(Snr ) Debtors/Computers - #143.21
" Creditors/Computers - #189.11
" Driver/Forklift - #120.00
" Stores/C. Sales - #120.00
" Electrical Tracer/Draughtsman _ #125.00 and #127.00
The claim was rejected by the Company and the matter was referred
to the conciliation service of the Labour Court on 27th January,
1987. A conciliation conference was held on 26th March, 1987.
The conference was adjourned until 8th June, 1987 to allow the
Company to review its position in light of its figures for
1986/1987. No progress was made and the parties referred the
matter to the Labour Court on 26th June for investigation and
recommendation. A Court hearing was held on 14th August, 1987.
Union's arguments:
3. (a) The rates paid by the Company are very low relative to
the duties performed and prevailing market rates
(details supplied to the Court).
(b) Last year the Company gave a large private increase to
a non-union worker of #34 a week and justified the
increase on the basis that it was paying the market
value for the job. Accepting the Company's logic it
can be seen from the information supplied to the Court
that the rates payable to the workers concerned fall
far short of the rates paid elsewhere for similar type
duties.
(c) By refusing to introduce salary scales for the clerical
workers, the Company is denying these workers the same
type of pay structure enjoyed by the overwhelming
majority of their colleagues elsewhere.
(d) The Company is discriminating in its application of
wage increases outside the wage round. It can by its
own admission, find substantial sums to give rises to
selected workers and provide vacation employment for
the relations of senior Management, yet cannot find the
finances to redress the scandalously low pay of these
workers.
(e) By the Company's own admission business has improved to
a 10% increase over the preceding year and it can
therefore afford the minimal adjustments claimed by the
Union.
Company's arguments:
4. (i) The Company has always maintained an individual rate
for the job carried out by its workers. This rate is
commensurate with the skill and experience of each
employee and the present wage structure has been
carefully set to reflect the relative worth of the
various positions in the Company.
(ii) The estimated cost of introducing a salary scale is
approximately #10,504 in year one. Even if the
Company did not object in principle to the
introduction of a salary scale, the cost factor would
be outside of the Company's range.
(iii) The products supplied by the Company are closely
allied to the construction industry. With the
downturn in the construction industry the Company is
finding it increasingly difficult to maintain market
turnover, as it is experiencing severe competition.
Business is carried out in a "tendering for contract
basis". If a contract is accepted then the cost of
any raw material increase cannot be recouped. The
components used by the Company are imported from
Germany. The devaluation of the deutsch mark forced
an unprecedented cost increase in 1986.
(iv) Though the Company has increased its turnover in the
past year the corresponding increase in raw materials
did not produce expected profits.
(v) At conciliation the Company made it clear that it
would be prepared to honour an increase in line with
C.I.F. negotiations which were taking place at that
time. In all the circumstances the introduction of a
salary scale cannot be considered.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends as follows:
(1) Clerical Employees - The introduction of a single
salary scale with a minimum of #110 progressing by
annual increments of #7.50 to a maximum of #200. The 4
clerical staff involved in the claim to be assimilated
into the scale at the following points.
Existing Salary Recommended Entry Point
on new Scale
129.51 #140.00
135.02 147.50
143.21 155.00
189.11 200.00
Effective date - 1/4/87
Annual Increment payable 1st January.
(2) Electrical/Draughtsmen/Drivers/Forklift/Stores
Personnel. The existing basic rate be increased by #12
per week from 1/4/87.
~
Signed on behalf of the Labour Court
Evelyn Owens
____________________
Deputy Chairman.
3rd September, 1987.
M.D./M.F.