Labour Court Database __________________________________________________________________________________ File Number: CD87529 Case Number: LCR11411 Section / Act: S67 Parties: COYLE HAMILTON LTD - and - ASTMS |
Claims on behalf of approximately 140 workers under the 26th wage round for:- (a) an increase in pay and (b) a new technology payment.
Recommendation:
7. (a) Pay:
The Court recommends an increase of 5% from 1st April, 1987 to
30th June, 1988 in respect of the 26th Round claim.
(b) Technology:
In view of the circumstances which surrounded the introduction of
new technology in 1979, the Court does not recommend concession of
this claim.
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD87529 THE LABOUR COURT LCR11411
CC87798 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11411
Parties: COYLE HAMILTON LIMITED
(Represented by the Federated Union of Employers)
and
ASSOCIATION OF SCIENTIFIC, TECHNICAL AND MANAGERIAL STAFFS
Subject:
1. Claims on behalf of approximately 140 workers under the 26th
wage round for:-
(a) an increase in pay and
(b) a new technology payment.
Background:
2. The Company is involved in insurance broking and employs
approximately 210 workers. The 25th wage round for the workers
expired on 31st March, 1987 and prior to this on 19th February,
1987, the Union on behalf of the workers served a claim in respect
of the 26th wage round as follows:-
1. twelve month agreement from 1st April, 1987.
2. An 8% increase in pay.
3. An additional increase of 5% in respect of the
introduction of new technology.
3. At local level, the Company made the following offer:-
1. An increase of 3% for twelve months
2. The claim for new technology payment was rejected.
The Union amended its claim to:-
1. A 7% increase in pay for twelve months
2. An increase of 3% in respect of new technology.
4. No agreement could be reached and on 18th May, 1987 the matter
was referred to the conciliation service of the Labour Court. A
conciliation conference was held on 22nd June, 1987 at which no
agreement could be reached and on 29th June, 1987 the matter was
referred to the Labour Court for investigation and recommendation.
The Court investigated the matter on 20th August, 1987.
Union's arguments:
5. (i) The Company is the largest Insurance Brokerage in
Ireland and has consistently stated that it is
profitmaking. The effects of reduced commission due to
rate cutting is not as significant as claimed by the
Company and increases on premiums by insurance
companies have automatically resulted in increased
commission for Insurance Brokers. Professional
Indemnity is a cost common throughout the industry and
is allowable against tax.
(ii) A comparison of the scales with other companies at the
end of the 25th wage round (details supplied to the
Court) shows that the rates in the Company have fallen
behind. The Union's claim for a wage increase is
justified with regard to settlements in comparable
companies (details supplied to the Court). In the last
four years permanent jobs have decreased and more
temporary workers employed, this has created extra work
for permanent workers and has been a cost saving factor
for the Company.
(iii) The new technology payment is justified. In 1979 when
systems were introduced all workers received a 2%
payment in respect of it although only some workers and
some specific areas were involved. The present phase
of technology introduction relates to a major area of
work not included initially and therefore not covered
by the agreement at that time. It is estimated that
new technology has increased the workload by 30% and
greatly increased effort and skills are required from
the workers (details supplied to the Court).
Company's arguments:
6. (a) There is a significant difference in the means of
income and operation of insurance companies and
insurance brokers. The Company is an insurance broker
and its principal source of income is commission earned
which is paid by and based on rates set by the
insurance companies. In the last eighteen months the
rate of commission has been cut significantly and
therefore there has been a drastic reduction in the
income of this Company. It is probable that the
reduced rates will continue to apply (details supplied
to the Court).
(b) In addition, there has been an astronomical increase in
the cost of Professional Indemnity Insurance. In the
current year alone, the cost of this has more than
doubled. The effect of these economic factors has been
to substantially reduce the Company's profit levels
even before any pay increase for 1987 is taken into
account.
(c) The current levels of remuneration and conditions of
employment in the Company (details supplied to the
Court), are extremely favourable compared to other
brokers, as is the Company's offer in this round. In
the last wage round (over fifteen months) the workers
received a 7.6% increase which together with an average
annual increment of 2.7% resulted in a total pay
increase of 10.49%, compared to the consumer price
index increase of 5% in the same period. It is
projected that in the current year inflation will
increase by 3% and the Company's offer, together with
annual increments would result in an increase of 5.7%,
almost double inflation.
(d) If the Union's claim for an increase for new technology
was conceded it would become an ongoing cost to the
Company. The Company has used computer systems for
many years, and any improvements in such is necessary
to maintain the Company's position in the market place.
There is no direct or immediate benefit to the Company
from using improved systems and investment in these is
extremely expensive. All workers have been ensured
that redundancies will not take place as a result of
new systems.
RECOMMENDATION:
7. (a) Pay:
The Court recommends an increase of 5% from 1st April, 1987 to
30th June, 1988 in respect of the 26th Round claim.
(b) Technology:
In view of the circumstances which surrounded the introduction of
new technology in 1979, the Court does not recommend concession of
this claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
--------------------
9th September, 1987
U.M./U.S. Deputy Chairman