Labour Court Database __________________________________________________________________________________ File Number: CD87604 Case Number: LCR11419 Section / Act: S67 Parties: WATERFORD CO-OP LTD - and - ATGWU |
Claim on behalf of 380 workers for (a) an increase of 10% in pay, (b) average pay to be taken into account for holiday pay purposes and (c) improvement in sick pay scheme.
Recommendation:
5. The Court having considered the submissions from the parties
recommends as follows:
3 month pay pause with a lead in payment of #50 in
lieu.
A 3% increase from 1st August, 1987 for 6 months,
and a further
2% from 1st February, 1988.
Agreement to expire on 31st July, 1988.
The Court does not recommend concession of the other aspects of
the claim.
Division: Ms Owens Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD87604 THE LABOUR COURT LCR11419
CC87984 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11419
Parties: WATERFORD CO-OPERATIVE SOCIETY LIMITED, DUNGARVAN PLANT
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of 380 workers for (a) an increase of 10% in
pay, (b) average pay to be taken into account for holiday pay
purposes and (c) improvement in sick pay scheme.
Background:
2. The 25th wage round expired on 30th April, 1987. The Union
lodged the above mentioned claim on 14th May, 1987 under the 26th
wage round, effective from 1st May, 1987 agreement to last for
twelve months. In response the Society proposed a 24 month
agreement with a 4 month pay pause followed by an increase of 1.50%
from 1st September, 1987 with further increases of 1.50% from 1st
May, 1988 and 1.50% from 1st September, 1988. In addition a payment
of #60 per worker in lieu of the pay pause. The Society rejected
elements (b) and (c) of the claim. The Society does not accept
the designation by the Union of the claim as representing the 26th
round. As the Society's offer did not meet the Union's
aspirations the matter was referred to the conciliation service of
the Labour Court on 19th June, 1987. A conciliation conference
was held on 23rd July, 1987. The Society modified its offer at
the conciliation conference to a 20 month agreement covering the
period 1st May, 1987 to 31st December, 1988, a pay pause of 4
months with a payment of #60 in lieu of same followed by an
increase of 2% from 1st September, 1987 with a further increase of
2% from 1st May, 1988. As this offer was not acceptable to the
Union both parties agreed to refer the matter to the Labour Court
for investigation and recommendation. A Court hearing was held in
Clonmel on 25th August, 1987.
Union's arguments:
3. (a) I.C.T.U. figures on 26th round wage settlements clearly
show that over 85% of the settlements provided for
increases of 5% and over on an annual percentage basis.
Against that background Management's offer of a two
phased 4% increase spread over twenty months, and
incorporating a pay pause is well out of line with the
average settlements in the 26th wage round.
(b) During the negotiations on the 24th round and the 25th
round, Management made very strong representations to
their workers for pay moderation, and the settlements
entered into, reflect the positive response of the
Union to those special representations.
(c) Average pay for holiday pay purposes: The merit of the
claim speaks for itself as the workers come out on
holidays with much lower pay. An agreement now
operates in Wexford Creamery whereby an extra 4 days
pay is paid with holiday pay (details supplied to the
Court). The Union considers that it is time for change
in the present system.
(d) Improvements in sick pay scheme: The Union are seeking
to have discussions on (a) contribution towards V.H.I.
coverage, (b) medical cover for the workers' families
and (c) #10 hospital charges. Because of the health
cut-backs workers have to provide more insurance cover
for themselves and their dependents. The Society
should go some way towards meeting these costs as there
is more than enough being deducted from workers pay
packets.
Society's arguments:
4. (i) The current economic situation within the industry and
within the Organisation (details supplied to the Court)
does not permit the Society to provide for any increase
beyond that stated at the conciliation conference.
(ii) The need for cost restraint in the dairy industry has
been brought sharply into focus by a number of issues
including changes in the Common Agricultural Policy,
cost inflation, relatively low profit margins and
pressure on milk prices. Also the recent proposals by
the I.C.O.S. on the rationalisation of the dairy
industry state that arising from the total cutbacks of
110 million gallons in the industry a new wave of
redundancies in the order of 1500 jobs is facing the
industry. It is clear that processing centres which
are performing most efficiently will be further
developed and that poor performers will not survive.
(iii) Average pay for holidays: The claim is essentially for
inclusion of overtime in the calculation of holiday
pay. The Holidays (Employees) Act, 1973 specifically
excludes payment of overtime in this calculation. Due
to the seasonal nature of the industry the level of
overtime is far greater during the summer peak season
than in the off season. Any concession of this element
of the claim would lead to crippling costs to the
Society.
(iv) Improvements in sick pay scheme: During the course of
negotiation on this element of the claim the Union
referred to a scheme which applies to Irish Transport
and General Workers' Union members (details supplied to
the Court). The scheme which applies to the workers
concerned compares more than favourably with that
scheme and there appears to be no justification for
adjusting the terms of the scheme.
RECOMMENDATION:
5. The Court having considered the submissions from the parties
recommends as follows:
3 month pay pause with a lead in payment of #50 in
lieu.
A 3% increase from 1st August, 1987 for 6 months,
and a further
2% from 1st February, 1988.
Agreement to expire on 31st July, 1988.
The Court does not recommend concession of the other aspects of
the claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
________________________
Deputy Chairman.
28th September, 1987.
M.D./J.C.