Labour Court Database __________________________________________________________________________________ File Number: CD87490 Case Number: LCR11424 Section / Act: S67 Parties: RANGELAND MEATS - and - ITGWU |
Claim on behalf of approximately 100 workers for a wage increase.
Recommendation:
6. The Court has examined the submissions of the parties and also
subsequent correspondence and has not found it possible to arrive
at a definitive conclusion on the timing of the wage rounds in
this case.
On the basis of the necessity to sustain the present rates
relative to other firms in the industry the Court recommends that
the Company offer be amended to provide for an increase of 5% with
effect from the 1st June, 1987 in respect of an agreement to
terminate 1st May, 1988 and that the offer so amended be accepted
by the workers concerned.
Division: Mr O'Connell Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87490 THE LABOUR COURT LCR11424
CC87782 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11424
Parties: RANGELAND MEATS LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of approximately 100 workers for a wage
increase.
Background:
2. The Company operates a beef boning plant and a beef processing
plant at Castleblayney, Co. Monaghan. The previous wage round
agreement expired in the Company on 28th February, 1987. The
Union claims that the last wage increase was in respect of the
25th wage round but the Company rejects this and claims the last
wage increase was in respect of the 26th wage round. The current
rates of pay are as follows:-
Boners - #136.04 Heavy workers - #125.33
Light workers - #107.12 Skilled light
workers - #113.48
The Union is claiming a 26th wage round increase of 10% over a
period of twelve months. The Company rejected the claim and
offered a 3.50% wage increase over nine months following a three
months pay pause. The Company also contend that the claim is in
respect of the 27th wage round.
3. No agreement was reached through local negotiations and on
13th May, 1987 the matter was referred to the conciliation service
of the Labour Court. A conciliation conference was held on 10th
June, 1987 while some progress was made in negotiations no
agreement was reached. On 16th June, 1987 the case was referred
to the Court for investigation and recommendation. A Labour Court
hearing was held on 8th July, 1987 in Dundalk.
Union's arguments:
4. (i) The Company first set up business in the summer of 1982
and the agreement on wages and conditions was concluded
in August of that year. That agreement expired on the
31st July, 1983. An I.T.G.W.U. analysis of the 22nd
wage round agreements gives a termination date of 31st
May, 1983. It is clear that the first Company/Union
agreement was a 22nd wage round agreement. Furthermore
it is clear from an examination of the wage settlements
since 1982 that the wage round now due to the workers
is the 26th wage round.
(ii) Generally the 26th wage round is near completion for
most industries and the Labour Court has recommended on
over 100 claims. To date there have been a total of
774 settlements negotiated under this wage round.
These give an average duration of agreements of 13.7
months and provide an average annualised increase of
6%.
(iii) The Union's claim, which is clearly under the 26th wage
round, is fair and reasonable and should be conceded.
Company's arguments:
5. (a) The number of the wage round was never mentioned in any
negotiations with the Union prior to the 1986
negotiations. If the current negotiations were to be
numbered, it can only be the 27th wage round as the
average wage increases in each wage round since the
start-up of the Company were higher than the
corresponding 26th, 25th and 24th wage round increases
on a national average basis.
(b) The Company's average wage rates are very much higher
than those of competitor companies. They are
approximately #12 per week higher than the rates in
similar manufacturing companies in the country.
(c) The Union has agreed lower wage increases with
competitor companies than was agreed with the Company
for each of the last two years.
(d) The market has become very competitive since the
Company started in 1982. At that time there were 3
independent boning plants and 11 processing plants.
To-day there are 15 independent boning plants and 24
beef processing plants. Due to this increase in
competition the Company has had to reduce staff in its
boning plant to 30 workers and to put those on a
three day week for two months. There is similar
competition facing the Company's beef processing
operation. The Company will have to improve its
competitiveness and to be more efficient in every way
than comparable companies if it is to survive.
(e) Cattle supplies will be reduced by at least 8% from
1988 onwards. The Company will be hit both in terms of
supply and margins by this fact.
(f) The changed policy of E.E.C. in relation to
intervention of beef and third country export refunds
will also affect the Company adversely. If the Company
is forced to change markets it will automatically mean
reduced throughput, lower employment and minimal
margins.
(g) It is essential that the Company's wage rates are kept
at or below the levels paid in competitor plants. At
present, the Company's uncompetitive on wages. This
must be rectified if it is to survive.
RECOMMENDATION:
6. The Court has examined the submissions of the parties and also
subsequent correspondence and has not found it possible to arrive
at a definitive conclusion on the timing of the wage rounds in
this case.
On the basis of the necessity to sustain the present rates
relative to other firms in the industry the Court recommends that
the Company offer be amended to provide for an increase of 5% with
effect from the 1st June, 1987 in respect of an agreement to
terminate 1st May, 1988 and that the offer so amended be accepted
by the workers concerned.
~
Signed on behalf of the Labour Court
John O'Connell
__________________________
Deputy Chairman.
23rd September, 1987.
T.O'M/J.C.