Labour Court Database __________________________________________________________________________________ File Number: CD87587 Case Number: LCR11420 Section / Act: S67 Parties: ACCO LTD - and - ITGWU |
Claim for an increase in pay under the 27th wage round.
Recommendation:
5. In light of the submissions mde by the parties the Court
recommends that the employers offer be amended to provide for an
increase of 4.50% in respect of an agreement of 12 months duration
plus a lump sum of #100 to each of the workers involved. The
Court further recommends that the offer so amended be accepted by
the workers concerned.
Division: Mr O'Connell Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD87587 THE LABOUR COURT LCR11420
CC87882 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11420
Parties: ACCO LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim for an increase in pay under the 27th wage round.
Background:
2. The Company manufactures computer related stationery and
storage systems, and is located in the Clonshaugh Industrial
Estate in Coolock, Dublin. The Company employs 140 people, of
whom approximately 85 are members of the Union. The 26th wage
round expired in the Company on 30th June, 1987. The Union, on
behalf of the workers, served a claim on the Company for a 10% pay
increase. The Company was prepared to offer 3.50% for a twelve
month agreement. Agreement could not be reached at local level,
and on 3rd June, 1987, the matter was referred to the conciliation
service of the Labour Court. A conciliation conference took place
on 8th June, 1987, and another on 24th July, 1987. At the
conciliation conferences the Company improved its offer to 4%.
The Union was not prepared to accept this offer. On 28th July,
1987, the matter was referred to the Labour Court for
investigation and recommendation. A Court hearing took place in
Dublin on 27th August, 1987.
Union's arguments:
3. (i) The Company has no competition in its sector of the
market in Ireland. It is making substantial profits,
and has plans for expansion and diversification. The
Company is in a very healthy financial condition, which
should be reflected in its offer to the workers.
(ii) The workers have given a great deal of co-operation,
flexibility and productivity to the Company. This has
been a major factor in the Company's success over the
six years of its existence.
(aye) This Company over the last year has improved its
machinery to the extent that it has more than recouped
any additional costs it incurred by payment of the last
wage agreement and it is continuing to make extremely
good profits to the extent that it could concede to the
workers' claim, without prejudicing its position in the
market place or putting any of the jobs or expansion
plans at risk.
(iv) In view of the fact that the Company is highly
mechanised, the labour costs represent a very small
percentage of the unit costs.
(v) Most important is that the workers see that the Company
is prepared to concede to them a fair return for their
endeavours during the past year and to eliminate the
frustration they are now experiencing by the Company's
failure to concede a fair increase on the basis of what
the Company has achieved and not on the basis of what
Industry, as a whole, is achieving or paying.
Company's arguments:
4. (a) The Company is selling into increasingly more
competitive markets - in order to ensure its longterm
survival the Company must hold its costs to a level
which keeps it competitive.
(b) In view of the trends in selling price referred to
above it is critical that the Company maintain its
costs trends in line with those levels, which
ultimately the marketplace determines.
(c) The employees must now consider wage increases in the
light of the Company's commercial position with a view
to maintaining a viable operation.
(d) Acco's pay rates compare favourably in the Dublin
region and in the Plastics Industry (details supplied
to the Court).
(e) In relation to recent pay increases the following table
shows how Acco has exceeded averages of local companies
in manufacturing in Dublin generally.
1984 1985 1986 Cumulative
Acco 12.6 8.07 6.75 30.00%
Company A 9.9 7.65 5.48 24.85%
Company B 8.69 7.24 5.93 23.47%
Company C 8.6% 5.4% 3.27% 18.12%
(f) Acco cannot keep adding to its fixed costs in this way.
The margin between success and failure is very slim.
Despite higher labour costs than competition outside
the country Acco has managed to stay competitive by
improving product design. This will have to continue.
In return for the flexibility this requires, the
employees cannot keep asking for excessive pay
increases. If the Company does not continually improve
its products it cannot survive with its higher labour
cost than outside competition.
RECOMMENDATION:
5. In light of the submissions mde by the parties the Court
recommends that the employers offer be amended to provide for an
increase of 4.50% in respect of an agreement of 12 months duration
plus a lump sum of #100 to each of the workers involved. The
Court further recommends that the offer so amended be accepted by
the workers concerned.
~
Signed on behalf of the Labour Court
John O'Connell
______________________
Deputy Chairman.
21st September, 1987.
P.F./J.C.
CD87587 THE LABOUR COURT LCR11420
CC87882 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11420
Parties: ACCO LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim for an increase in pay under the 27th wage round.
Background:
2. The Company manufactures computer related stationery and
storage systems, and is located in the Clonshaugh Industrial
Estate in Coolock, Dublin. The Company employs 140 people, of
whom approximately 85 are members of the Union. The 26th wage
round expired in the Company on 30th June, 1987. The Union, on
behalf of the workers, served a claim on the Company for a 10% pay
increase. The Company was prepared to offer 3.50% for a twelve
month agreement. Agreement could not be reached at local level,
and on 3rd June, 1987, the matter was referred to the conciliation
service of the Labour Court. A conciliation conference took place
on 8th June, 1987, and another on 24th July, 1987. At the
conciliation conferences the Company improved its offer to 4%.
The Union was not prepared to accept this offer. On 28th July,
1987, the matter was referred to the Labour Court for
investigation and recommendation. A Court hearing took place in
Dublin on 27th August, 1987.
Union's arguments:
3. (i) The Company has no competition in its sector of the
market in Ireland. It is making substantial profits,
and has plans for expansion and diversification. The
Company is in a very healthy financial condition, which
should be reflected in its offer to the workers.
(ii) The workers have given a great deal of co-operation,
flexibility and productivity to the Company. This has
been a major factor in the Company's success over the
six years of its existence.
(aye) This Company over the last year has improved its
machinery to the extent that it has more than recouped
any additional costs it incurred by payment of the last
wage agreement and it is continuing to make extremely
good profits to the extent that it could concede to the
workers' claim, without prejudicing its position in the
market place or putting any of the jobs or expansion
plans at risk.
(iv) In view of the fact that the Company is highly
mechanised, the labour costs represent a very small
percentage of the unit costs.
(v) Most important is that the workers see that the Company
is prepared to concede to them a fair return for their
endeavours during the past year and to eliminate the
frustration they are now experiencing by the Company's
failure to concede a fair increase on the basis of what
the Company has achieved and not on the basis of what
Industry, as a whole, is achieving or paying.
Company's arguments:
4. (a) The Company is selling into increasingly more
competitive markets - in order to ensure its longterm
survival the Company must hold its costs to a level
which keeps it competitive.
(b) In view of the trends in selling price referred to
above it is critical that the Company maintain its
costs trends in line with those levels, which
ultimately the marketplace determines.
(c) The employees must now consider wage increases in the
light of the Company's commercial position with a view
to maintaining a viable operation.
(d) Acco's pay rates compare favourably in the Dublin
region and in the Plastics Industry (details supplied
to the Court).
(e) In relation to recent pay increases the following table
shows how Acco has exceeded averages of local companies
in manufacturing in Dublin generally.
1984 1985 1986 Cumulative
Acco 12.6 8.07 6.75 30.00%
Company A 9.9 7.65 5.48 24.85%
Company B 8.69 7.24 5.93 23.47%
Company C 8.6% 5.4% 3.27% 18.12%
(f) Acco cannot keep adding to its fixed costs in this way.
The margin between success and failure is very slim.
Despite higher labour costs than competition outside
the country Acco has managed to stay competitive by
improving product design. This will have to continue.
In return for the flexibility this requires, the
employees cannot keep asking for excessive pay
increases. If the Company does not continually improve
its products it cannot survive with its higher labour
cost than outside competition.
RECOMMENDATION:
5. In light of the submissions mde by the parties the Court
recommends that the employers offer be amended to provide for an
increase of 4.50% in respect of an agreement of 12 months duration
plus a lump sum of #100 to each of the workers involved. The
Court further recommends that the offer so amended be accepted by
the workers concerned.
~
Signed on behalf of the Labour Court
John O'Connell
______________________
Deputy Chairman.
21st September, 1987.
P.F./J.C.