Labour Court Database __________________________________________________________________________________ File Number: CD87434 Case Number: LCR11409 Section / Act: S67 Parties: MAHON & MCPHILIPS - and - NEETU |
Claim on behalf of 6 electricians for payment of the minimum craft rate for the electrical contracting industry as set by the Electrical Industry National Joint Industrial Council (EINJIC).
Recommendation:
5. The Court notes that the craftsmen in this claim have
traditionally been paid the basic craft rate for the construction
industry in line with all other craftsmen employed in this Company
and that concession of the claim would not be of any immediate
financial benefit to them having regard to the level of bonus paid
to them.
The Court notes further that the employer is not in membership of
the signatory bodies of the EINJIC Agreement.
In these circumstances the Court does not recommend concession of
the claim.
Division: CHAIRMAN Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD87434 THE LABOUR COURT LCR11409
CC87650 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11409
Parties: MAHON & MCPHILIPS GROUP LIMITED
(Represented by the Construction Industry Federation)
and
NATIONAL ENGINEERING & ELECTRICAL TRADE UNION
Subject:
1. Claim on behalf of 6 electricians for payment of the minimum
craft rate for the electrical contracting industry as set by the
Electrical Industry National Joint Industrial Council (EINJIC).
Background:
2. The Company has developed over the years from initially being
engaged in civil engineering to a Group engaged in land
reclamation, civil engineering, water treatment and farm machinery
work. The Group employ in excess of 100 craft workers covering a
wide range of skills such as carpenters, welders, plasters,
fitters, stone masons, plumbers, mechanics, metal fabricators and
electricians. All craft workers and general operatives employed
by the Group are paid the Construction National Joint Industrial
Council (CNJIC) wage rate. The current craft rate of #144.21
(360.53p per hour) automatically applies to the Company's
electricians. In addition the electricians are paid a weekly
bonus of #18.41 for a 40 hour week. This bonus is subject to the
same percentage wage round increases and is used in overtime
calculations. If a worker is working away from Kilkenny,
travelling and subsistence rates are payable. The Union claimed
the EINJIC wage rate #157.31 (391.21p per hour) for the
electricians. This claim was rejected by the Company and the
matter was referred to the conciliation service of the Labour
Court on 14th April, 1987. A conciliation conference was held on
28th May, 1987. As a resolution was not possible both parties
agreed to a referral to the Labour Court for investigation and
recommendation. A Court hearing was held in Kilkenny on 1st
September, 1987 a date suitable to both parties.
Union's arguments:
3. (a) In all industries throughout the country time served
craftsman have the same rates of pay except where
incremental scales apply, in which case the standard
point of the scale is the minimum craft rate. The
Union's claim is for the minimum rate as applies to the
EINJIC, the difference being made up by deducting the
appropriate amount from the bonus and adding it to the
CNJIC craft rate.
(b) The Company have in the past engaged electrical
contractors to carry out work on their sites. The
Company's electricians are expected to work alongside
those employed by the subcontractor even though the
latter are on a higher basic rate of pay.
(c) The Executive Council of the Union together with all
other craft unions consider their basic rate a matter of
high principle and will always support their members by
way of official strike if necessary to secure their basic
rate of pay.
(d) The principle of pensions, sick pay, pay related social
insurance benefits and mortgage applications are all
based on basic pay rates.
Company's arguments:
4 (i) The Company are members of the CIF and are designated by
AnCO for the purposes of levy grant scheme under the
heading 'CONSTRUCTION'. This, in effect, means that all
formal training within the Company is tied to and
associated with the 'construction' designation.
(ii) Thus, over all these years, it has been firm custom and
practice, and indeed accepted by all the workers, that a
uniform craft rate would apply throughout the Group of
companies. In fact, employees of the Group, when being
recruited, are advised and indeed accept that there is
flexibility between one company and the other as regards
work.
(iii) The craft workers in all other trades work in the same
environment and enjoy the same rates of pay, and terms
and conditions of employment as the electricians. Were
the electricians' rate of pay to exceed that of any
other craft, then such would create dissatisfaction with
the other trades and, inevitably, lead to pressure for
an increase.
This would put further pressure on the Company to be
cost efficient when tendering for contracts as the main
competitors, like the Company are members of the CIF and
pay CIF wage rates.
(iv) It is very important that the Court fully understand
that the Group, having secured a construction contract,
always utilises a bonafide electrical contractor, who
would be obliged to implement the terms of the EINJIC.
RECOMMENDATION:
5. The Court notes that the craftsmen in this claim have
traditionally been paid the basic craft rate for the construction
industry in line with all other craftsmen employed in this Company
and that concession of the claim would not be of any immediate
financial benefit to them having regard to the level of bonus paid
to them.
The Court notes further that the employer is not in membership of
the signatory bodies of the EINJIC Agreement.
In these circumstances the Court does not recommend concession of
the claim.
~
Signed on behalf of the Labour Court
28th September, 1987 John M Horgan
MD/US Chairman