Labour Court Database __________________________________________________________________________________ File Number: CD87389 Case Number: LCR11417 Section / Act: S67 Parties: SIFCO - and - |
Recommendation:
Division: Mr O'Connell Mr McHenry
Text of Document__________________________________________________________________
'C MCH
O'M LCR11145 REFERS THIS FILE ATTACHED TO CD87/162
NoWorkers: 45
DatesOffered:
OnHoldDate:
DatePostponed:
RecAgreed: 18/06/87
RecPara: 9. The Court, having considered the submissions and subsequent
RecPara: correspondence from the parties, finds that the Company's existing
RecPara: shift premium and leave arrangements are in line with those
RecPara: prevailing in comparable firms both locally and nationally and
RecPara: does not therefore recommend concession of the Union's claims.
EmployerReps: FUE
Section: S67
RecSigned: 17/09/87
Subject: Claims for (a) increased shift premium, (b) additional annual leave,
RecToTyping: 06/07/87
DisputeType:
Venue: SILVER SPRINGS HOTEL, TIVOLI, CORK
WorkerClass:
DateWithdrawn:
WorkerParty: ITGWU
Worker: Mr. O'Murchu
Body:
CD87389 THE LABOUR COURT LCR11417
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11417
Parties: SIFCO
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS')
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claims for (a) increased shift premium,
(b) additional annual leave,
General Background:
2. These claims were raised by the Union as part of the 26th wage
round which was the subject of an investigation and recommendation
by the Labour Court (L.C.R. No. 11145 refers). During its
investigation of the wage round the Court did not make any
recommendation on these claims but it subsequently agreed to have
a further hearing concerning the Union's claims for increased
shift premium and additional leave. A Labour Court hearing was
held on 17th June, 1987 in Cork.
Claim (a) : increased shift premium
Background:
3. The present shift premia are time plus one sixth for two
shift working Monday to Friday and time plus a fifth for three
shift working Monday to Friday. The Union is claiming the payment
of time plus one fifth, time plus one quarter and time plus one
third for two and three shifts respectively. The Company rejected
the claim.
Union's arguments:
4. (i) The Union is seeking to establish a decent shift
premium, in line with the spread of shift premia
claimed, for the workers.
(ii) Since the wage round negotiations began the Company
increased the number of shifts that the workers
operate. The workers co-operated with the Company, in
the best method of industrial relations, while awaiting
the outcome of the negotiations.
(iii) The patience and co-operation of the workers should now
be recognised and this claim conceded retrospectively
to the start of the wage round agreement.
(iv) The shift premia paid by the Company is not as
favourable as those paid by other companies in the
area.
Company's arguments:
5. (a) During the course of negotiations, the Union was
informed that while the Company's position had improved
over the last year, substantial losses had accumulated
over the first two years of the Company's operation.
This necessitates further substantial improvement in
the Company performance if these cumulated losses are
to be eliminated.
(b) Changes in currency values have severely impacted on
the Company. In 1985 the U.S. dollar was at par. In
1986 the U.S. dollar was equal to 70p and forecasts for
1987 indicate that the dollar will be equal to 65p. As
approximately 90% of Company sales are in U.S. dollars,
the Court will readily appreciate the enormous impact
which this revaluation has had and will continue to
have on the Company's competitiveness.
(c) The Company is competing directly for business with low
cost countries such as Mexico and Singapore. It is
also competing for business with other facilities
within the group and if it is to survive and grow, it
must be competitive against these facilities.
(d) Pricing structures for the Company's products are based
on contractual arrangements. If increases in local
costs exceed the levels permitted by these contractual
arrangements, the Company is unable to recover the
excess. Furthermore, any wage increases in excess of
the Company's offer would be irrecoverable and would
inevitably lead the Company back into a loss making
situation.
(e) During the course of negotiations the Union has
referred to local industrial rates of pay. Whilst
interesting, such comparison has no relevance. The
Company has to survive in an international market not a
local one. Its future will be charted solely by its
competitiveness in the market place. In these
circumstances it is essential for the Company to
control its costs, develop and grow or face the
alternative of acceding to unrealistic demands, thus
placing its future in jeopardy.
(f) The shift premia paid by the Company compare favourably
with shift premia paid by other companies in the
locality and is in excess of the shift premia paid in
relevant competitor countries.
Claim (b) : increased annual leave
Background:
6. The present annual leave entitlement is 20 days for all
employees with a minimum of one year's service. The Union is
claiming an increase of 2 days in this annual leave entitlement.
The Company rejects the claim.
Union's arguments:
7. (i) The present annual leave entitlement is inadequate and
should be increased as claimed by the Union.
Company's arguments:
8. (a) Concession of this claim would be a further unwarranted
cost on the Company.
(b) There is no general movement towards additional annual
leave and the Company's arrangements are well in line
with the general level of annual leave.
RECOMMENDATION:
9. The Court, having considered the submissions and subsequent
correspondence from the parties, finds that the Company's existing
shift premium and leave arrangements are in line with those
prevailing in comparable firms both locally and nationally and
does not therefore recommend concession of the Union's claims.
~
Signed on behalf of the Labour Court
John O'Connell
________________________
Deputy Chairman.
17th September, 1987.
T.O'M./J.C.