Labour Court Database __________________________________________________________________________________ File Number: CD87554 Case Number: LCR11389 Section / Act: S67 Parties: TAYTO LTD - and - ATGWU |
Claim on behalf of general operatives for a wage increase under the 27th wage round.
Recommendation:
5. The Court, having considered the submissions from both
parties, recommends as follows in relation to the various elements
of the 27th round claim:-
1) Service Pay - In accordance with the terms of the
1985 agreement, the Court recommends
that service pay be index linked in
line with wage increases.
2) Smock Allowance - The Court notes that both parties
have agreed to an increase of #10 per
annum (paid in two instalments).
3) Basic Pay - An increase of 3.5%.
Duration of the agreement - 12 months (to 31st March, 1988).
Division: Ms Owens Mr Shiel Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87554 THE LABOUR COURT LCR11389
CC87708 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11389
Parties: TAYTO LIMITED
(Represented by the Federated Union of Employers)
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of general operatives for a wage increase
under the 27th wage round.
Background:
2. The 26th round for the workers concerned expired on the 31st
March, 1987. On the 1st April, the Union wrote to the Company
claiming 6% over twelve months, an extra day's annual leave, an
increase in and an index-linking of service pay and the smock
allowance to be increased by #30 per annum (from #60 to #90) and
be indexed to basic rates. At a meeting on the 18th May, the
Company offered to increase basic rates by #3 per week. This was
unacceptable to the Union and as local level discussions failed to
resolve the dispute, the matter was referred to the conciliation
service of the Labour Court on the 4th May, 1987. No agreement
was reached at a conciliation conference, held on the 21st May,
1987 and on 9th July the matter was referred to the Labour Court
for investigation and recommendation. The Court investigated the
dispute on the 7th August, 1987.
Union's arguments:
3. (a) The Union and Management have negotiated and agreed 64
redundancies, most of which come into effect in
September. With this number of staff leaving, there is
no doubt that the overall labour costs will be very much
reduced. However, the same level of production will be
maintained and improvements in plant and more efficient
production methods are designed to make the Company more
profitable. In addition, the Union wishes to stress
that the redundancy/rationalisation deal negotiated with
the Company is completely separate from the wage claim
and any monies accruing to members from the
rationalisation deal should have no bearing on the level
of wage increase awarded.
(b) Successive pay agreements have resulted in a reduction
in the claimants' standards of living as real disposable
incomes are down.
(c) The claim made by the Union is not unreasonable and is
in line with most 27th round settlements. The claimants
have played their part in making the Company more
efficient and therefore more profitable and feel that
the Company should treat the staff fairly and grant a
fair increase. The Union's original claim has been
amended to a 4% wage increase plus the indexing of
service pay and snack allowance provided service pay
bands were increased by 50p and smock allowance by #10
per annum.
Company's arguments:
4. (a) The Company has been involved in protracted negotiations
with the Union on a comprehensive investment programme
necessary to secure the long term viability of the
Company. Leaving aside the redundancy costs of the
investment programme, remaining employees will receive
increases ranging from #8 to #13.50 per week from
September, 1987 (details supplied to the Court).
Combined with the Company's existing offer on pay (#3
per week) this means that in percentage terms, employees
will receive increases of between 8.94% and 13.1% (gross
increases of between #12 and #17.50 per week). Having
regard to this, the Union's claim for an increase of 4%
for twelve months, which in combined terms means
percentage increases of between 10.61% and 14.77%, is
totally unreasonable.
(b) In addition to the redundancies costs' and the ongoing
increase in labour costs the Company must also finance
the capital costs of new equipment. As has already been
stated the investment programme was necessary to secure
the Company's competitive position for the future. It
is equally important that having secured the investment,
it does not now make itself uncompetitive. The Company
is continuing to experience increased competition in the
market place, mainly from imports.
(c) With historically low rates of inflation, the combined
effect of the pay increases referred to above will be in
excess of three times the rate of inflation. Any
further increase is unreasonable and unjustified. The
employees currently enjoy an extremely comprehensive
remunerative package as can be evidenced from the
following table:-
Basic Rates #134.08 per week
Production Bonus #45 - #47 per week
Shift premia 20% for 2 shift, 15% part-time evening
shift, (75% of all employees work shift)
Annual leave 21 days plus additional service leave
Service pay
Pension scheme.
The above package is the best operating in the snack/
food industry and is in the top three in the sugar
confectionery trade. With the application of the
proposed increases an employee on a basic 40 hour week
working two shift will earn between #218 and #225.20 per
week.
(d) The issue of service pay was discussed in the last wage
round and it was agreed at that time that it would move
in line with wage agreements. The Union is now
attempting to move away from this.
Recommendation:
5. The Court, having considered the submissions from both
parties, recommends as follows in relation to the various elements
of the 27th round claim:-
1) Service Pay - In accordance with the terms of the
1985 agreement, the Court recommends
that service pay be index linked in
line with wage increases.
2) Smock Allowance - The Court notes that both parties
have agreed to an increase of #10 per
annum (paid in two instalments).
3) Basic Pay - An increase of 3.5%.
Duration of the agreement - 12 months (to 31st March, 1988).
~
Signed on behalf of the Labour Court
3rd September, 1987 Evelyn Owens
DH/MF Deputy Chairman