Labour Court Database __________________________________________________________________________________ File Number: CD87445 Case Number: LCR11398 Section / Act: S67 Parties: SHAWS LTD. - and - IDATU;ATGWU;ITGWU |
Claim, on behalf of approximately eighty workers for an increase in service pay.
Recommendation:
5. The Court, having considered the submissions made by the
parties, does not recommend concession of the claim.
Division: Mr Fitzgerald Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87445 THE LABOUR COURT LCR11398
CC8650 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11398
PARTIES: SHAW AND SONS LIMITED WATERFORD
and
IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION
IRISH TRANSPORT AND GENERAL WORKERS' UNION
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, on behalf of approximately eighty workers for an
increase in service pay.
Background:
2. Negotiations on the 26th wage round in this Company took place
outside of the Waterford Distributive Trades negotiations. In
December, 1986, the Company offered a 3% increase for seven months
from the expiry date of the previous agreements followed by a
further 3% for six months. The Unions sought a 12 month
agreement, an improvement in service pay and improved holiday
entitlement. The Company agreed to amend its offer to a one phase
increase of 5% over 12 months. An additional day's leave was
offered in lieu of Good Friday and it was proposed that the issue
of service pay be referred to a third party. These proposals were
accepted by the three unions. The current level of service pay is
as follows -
After 5 years - 50p per week
After 10 years - #1.00 per week
After 15 years - #1.50 per week
After 20 years - #2.00 per week
After 25 years - #2.50 per week
After 30 years - #3.00 per week
The Unions are seeking the following increase -
After 5 years - #2.00
After 10 years - #4.00
After 15 years - #6.00
After 20 years - #8.00
After 25 years - #10.00
After 30 years - #12.00
The matter was referred, on 10th December, 1986, to the
conciliation service of the Labour Court. No agreement was
reached and on 4th June, 1987, the matter was referred to a full
hearing of the Labour Court. The hearing took place on 19th
August, 1987, in Waterford.
Union's arguments:
3. (i) In the light of the fact that no increase has been
granted since the introduction of service pay in the
Company's Waterford Branch in March, 1980, and taking
inflation into account, the Unions view this claim as
being fair and reasonable.
(ii) Increases have been granted in other centres and
Company employees in Dun Laoghaire, Athy, Limerick and
Roscrea currently enjoy better rates than their
colleagues in Waterford (details supplied to the
Court).
(iii) The Unions do not accept that existing incremental
scales recognise service adequately.
Company's arguments:
4. (a) The Company contends that service is already
adequately recognised within the existing six point
incremental scale and the Sick Pay Scheme.
(b) The current service pay schedule is in line with all
other centres in the South East Region (details
supplied).
(c) The cost of the basic wage increase over a 12 month
period was the highest granted within the Shaw group.
It is also above the norm for the distributive trades
nationwide. The basic wage rate currently paid is the
highest in the South East distributive trades and
although the Company is no longer a party to the
Waterford Distributive Trades negotiations it cannot
ignore the level of settlement reached by its main
competitors. Any improvement in the existing service
pay schedule would render the company somewhat
uncompetitive.
(d) The company is already in a situation where staff
costs are too high and is currently exploring options
with the Unions, with a view to reducing these costs.
RECOMMENDATION:
5. The Court, having considered the submissions made by the
parties, does not recommend concession of the claim.
~
Signed on behalf of the Labour Court
7th September, 1987 Nicholas Fitzgerald
A.K./P.W. Deputy Chairman