Labour Court Database __________________________________________________________________________________ File Number: CD87399 Case Number: LCR11408 Section / Act: S67 Parties: WHEAT INDUSTRIES LTD - and - GROUP OF UNIONS;ITGWU |
Claim on behalf of 82 workers under the 26th wage round.
Recommendation:
5. The Court having considered the submissions from both parties
recommends as follows:
3 months' pay pause from 1st January, 1987,
3% increase from 1st April, 1987, and a further
3% from 1st October, 1987.
Agreement to expire on 31st March, 1988.
In the present circumstances of the Company the Court recommends
that the Company's proposals as set out in Appendix 2 of their
submission be accepted in settlement of the other items contained
in the claim.
Division: Ms Owens Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD87399 THE LABOUR COURT LCR11408
CC87630 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11408
Parties: WHEAT INDUSTRIES REFINERIES LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
NATIONAL ENGINEERING AND ELECTRICAL TRADES UNION
ELECTRICAL TRADE UNION
AMALGAMATED UNION OF ENGINEERING WORKERS
Subject:
1. Claim on behalf of 82 workers under the 26th wage round.
Background:
2. The Company is a service industry to the food, baking and
confectionery sectors of the industry using wheat as its raw
materials for the manufacture of glucose syrups, starch, gluten
and animal feed which are commodity products. The Company was
established in 1983 as a joint venture between the Fielder
Gillespie Davis of Australia, who were the major shareholders and
Ceimici Teoranta. In August, 1986 the Company was purchased by
C.P.C. International Inc of New Jersey, U.S.A. The Company was
one of 13 manufacturing units in Europe all part of C.P.C.
European Industrial Division and manufacturing similar products.
In February, 1987 it was announced that agreement had been reached
in principle for the purchase of C.P.C. Europe Industrial Division
by the Ferruzzi Group of Italy (an Itilian owned agri industry
based company). The target date of the completion of the
transaction has been set for 1st October, 1987.
The 25th wage round expired on 31st December, 1986. On the 15th
April, 1987, following correspondence and meetings between the
Company and the Unions, the following claim was submitted under
the 26th wage round:
(i) 15% wage increase over 12 months with no pay pause.
(ii) Differential of 5 days annual leave for 4 shift workers
over day workers.
(iii) Reduction in sick pay waiting time from 24 hours to 16
hours.
(iv) Inclusion of hand over payment in holiday pay.
(v) Substitute 1 shift for 1 day in compassionate leave.
(vi) Company to subsidise the V.H.I. scheme.
(vii) Introduction of bonus payment at Christmas.
In response the Company sought a pay pause of 18 months followed
by an increase equivalent to the rate of inflation. The Company
rejected the other aspects of the claim with the exception of
items (2), (5) and (6). On item (2) the Company offered to
rationalise the differential that existed between the craft union
members (22 days) and the I.T.G.W.U. members (23 days) as a result
of Labour Court Recommendation No. 10616. On item (5) the Company
would concede that in the case of shift workers' "one shift" would
be substituted for "one day" for compassionate leave purposes. On
item (6) the Company operates a group scheme which gives
significant benefit to members. This scheme is open to all
workers. As this offer did not meet the Unions' aspirations the
matter was referred to the conciliation service of the Labour
Court on 16th April, 1987. Conciliation conferences were held on
7th and 14th May, 1987. At the conferences the Unions indicated
that they would consider an increase of 8% for 12 months (possibly
15 months) but definitely no pay pause, one extra days holidays
for shift workers, with their position on the other items
unchanged. The Company would settle for a 15 month agreement -
2.50% from 1st June, 1987 and 2.50% from 1st January, 1988 agreement
to expire on 31st March, 1988 and concede handover claim and an
extra day to shift workers if they get a firm commitment that
there would not be any knock-on from the day workers, all other
items of the claim to be dropped. As no agreement was possible
both parties agreed to a referral to the Labour Court for
investigation and recommendation. A Court hearing was held in
Cork on 26th August, 1987.
Unions' arguments:
3. (a) The monetary claim submitted on behalf of the workers
takes into account the massive amount of flexibility
being given by the workers, also the introduction of
new technology which necessitates major changes in
working skills and capability, surely this must be
worth some level of reward above the norm. The workers
by their co-operation with the Company on these matters
show the level of commitment to the job.
(b) It is a recognised fact in the lower harbour areas that
5 extra days holidays for 4 shift workers over day
workers is the norm. Even Angus Fine Chemicals have
conceded this and they are only in start up operation.
(c) The current sick pay scheme provides a waiting period
of 3 days 24 hours for shift workers. The Unions' are
requesting that the above period be reduced to 16 hours
thus helping to alleviate the hardship when members
fall sick.
(d) At present the shift hand over payment stands at 1.25
hours per week for shift workers. As this is part of
their normal weekly wages, then it should be paid for
annual holidays, indeed it is paid in all industries
where it applies.
(e) As the compassionate leave stands at the moment, the
agreement states one day for the birth of a child etc.,
the Unions' are requesting the Court to substitute 1
shift for 1 day.
(f) With more and more people being forced to join the
V.H.I. for health cover, the Unions are requesting the
Company to subsidise in some way their employees whose
weekly wages are being eroded steadily by deductions of
this sort.
(g) As more and more companies are giving their workers
reward for the years work it is time that Wheat
Industries should introduce some payment at the festive
for their employees.
Company's arguments:
4. (i) Since its inception, the Company has not been
financially viable and continues to have losses each
year. Having been taken over by C.P.C., the European
part of the operation has now been taken over in turn.
We are the smallest of the 13 plants in the C.P.C.
Industrial Division and, as such do not benefit from
the economy of scale.
(ii) As well as competing with foreign suppliers, the
Company also compete on a cost competitive base with
the other plants within the C.P.C./FERRUZZI Group. In
this respect we, in Ireland, are faced with the burden
of:
(a) Higher cost of raw materials
(b) Higher energy cost
(c) Higher transport cost
a cost mix which must be overcome if we are to remain
competitive even within our own Group of Companies.
(iii) When the Company was taken over by C.P.C. and linked
with the profitable consumer division of C.P.C.
Industries Ltd., some synergy was expected, but this
will not happen now because of the sale of the C.P.C.
Industrial Division to the FERRUZZI Group.
C.P.C. have, since the takeover of the Company invested
a substantial amount of money in both the financial
restructuring and plant capital investment section of
the Company. The plant Investment Programme was in two
parts. Part one (1) of this programme is currently
ongoing, but part two (2) has now been put on hold.
The Company is hopeful that the new owners, FERRUZZI,
will take a favourable view of the investment programme
which is needed to put this plant on a viable footing.
(iv) It is imperative that the new owners must see a
positive responsible response from the trade union
membership and that they are prepared to play their
part in the future development of the Company.
(v) The Company is, and always has been, prepared to make
some movement in pay having cognisance with the
guidelines set out by the Government in relation to
inflation as was demonstrated during the conciliation
conference.
It is submitted that the final proposal worked out with
the assistance of the conciliation officer represents,
in the circumstances, a very generous basis for final
agreement and is the maximum the Company could sustain
during the period of the agreement.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends as follows:
3 months' pay pause from 1st January, 1987,
3% increase from 1st April, 1987, and a further
3% from 1st October, 1987.
Agreement to expire on 31st March, 1988.
In the present circumstances of the Company the Court recommends
that the Company's proposals as set out in Appendix 2 of their
submission be accepted in settlement of the other items contained
in the claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
_________________________
Deputy Chairman.
28th September, 1987.
M.D./J.C.