Labour Court Database __________________________________________________________________________________ File Number: CD87528 Case Number: LCR11400 Section / Act: S20(2) Parties: MERCK, SHARP & DOHME (I) LTD - and - ITGWU |
Claim for an increase in pay on behalf of 105 workers under the 26th wage round.
Recommendation:
5. The Court is of the view that the Company's offer is fair in
the circumstances and recommends that it be accepted.
The Court notes that as this referral was for arbitration that the
parties have agreed to be bound by the Court's recommendation.
Division: Ms Owens Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD87528 THE LABOUR COURT LCR11400
CC87620 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11400
Parties: MERCK, SHARP & DOHME (IRELAND) LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim for an increase in pay on behalf of 105 workers under
the 26th wage round.
Background:
2. The Company which is part of an American based multinational
manufactures chemical materials used in the pharmaceutical
industry. The workers concerned are employed in various grades
such as process operators, security and laboratory technicians.
The 25th wage round expired at the end of November, 1986. The
Union lodged a claim with the Company under the 26th wage round on
5th November, 1986 which contained 11 items including an increase
in basic pay. The Company rejected the claim and put forward its
own proposals. Following meetings at local level and a secret
ballot the Company's offer was rejected. The matter was referred
to the conciliation service of the Labour Court on 15th April,
1987. A conciliation conference was held on 15th May, 1987 at
which no progress was possible. It was indicated at the
conference that the only issues needing to be resolved were that
of percentage increase and commencement date of agreement.
Another meeting was held between the Company and the Union on 26th
May, 1987, which resulted in the following offer being accepted by
the Union:
- 6% increase effective from 29th December, 1986 plus a
payment of #50 per worker on acceptance,
- additional weeks bonus payable from Christmas 1987,
- life assurance cover increased to three times salary.
Agreement to expire on 31st December, 1987. Both parties agreed
to refer the Union's claim for an extra percentage increase over
the Company's offer and the elimination of the pay pause to the
Labour Court for investigation and recommendation. Both parties
also agreed to be bound by the Court's Recommendation. A Court
hearing was held in Clonmel on 25th August, 1987.
Union's arguments:
3. (a) The claim for the higher percentage increase is based
on the continuing flexibility/productivity and in
particular specific cost saving exercises as contained
in the Company's offer which requires additional duties
and responsibilities.
(b) The Company is trading profitably and enjoys good
industrial relations and the on-going co-operation of
the workers down the years have contributed to a
successful enterprise.
(c) The Union is reluctant to agree to any offer which
contains a pay pause and are seeking to have the
Agreement effective from the end of the 25th wage round
i.e. November, 1986.
Company's arguments:
4. (i) The Company's offer is fair and reasonable considering
that the rate of inflation is falling faster than
anticipated.
(ii) The pay and conditions of the workers concerned compare
more than favourably with those of other companies
(details supplied to the Court). Other groups within
the Company have accepted the offer.
(iii) The Company's offer is well within the norm for the
26th wage round generally.
RECOMMENDATION:
5. The Court is of the view that the Company's offer is fair in
the circumstances and recommends that it be accepted.
The Court notes that as this referral was for arbitration that the
parties have agreed to be bound by the Court's recommendation.
~
Signed on behalf of the Labour Court
Evelyn Owens
__________________________
Deputy Chairman
9th September, 1987.
M.D./J.C.