Labour Court Database __________________________________________________________________________________ File Number: CD88144 Case Number: LCR11808 Section / Act: S67 Parties: WATERFORD CO-OPERATIVE (INCH CREAMERY) - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim on behalf of 150 workers, for a wage increase under the 27th wage round.
Recommendation:
6. The Court having considered the submissions from both parties
recommends that the Union accept the same increases as set out in
Labour Court Recommendation No. 11,419 and on the same terms.
Division: Ms Owens Mr Heffernan Mr Devine
Text of Document__________________________________________________________________
CD88144 RECOMMENDATION NO. LCR11808
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: WATERFORD CO-OPERATIVE (INCH CREAMERY)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim on behalf of 150 workers, for a wage increase under the
27th wage round.
BACKGROUND:
2. The workers here concerned are employed in the Company's Inch
depot. The 26th wage round agreement terminated for these workers
on 30th April, 1987. On 17th September, 1987 the Union outlined
its claim under the 27th wage round. This was for a 10% wage
increase over twelve months and that some fringe benefits conceded
to workers in Dungarvan should be applied to the workers. The
Company rejected the claim and offered in an agreement of 24
months duration a 4 months pay pause, a 1.5% increase for 6
months, a 1.5% increase for 6 months and a 1.5% increase for 8
months. No agreement was reached through local negotiations and
on 29th September, 1987 the matter was referred to the
conciliation service of the Labour Court. A conciliation
conference was held on 19th November, 1987.
3. At the conciliation conference the Union re-iterated its claim
for a 16% wage increase and claimed improved service pay. The
Company rejected the claim and offered the terms of Labour Court
Recommendation No. 11,419 which had been applied to workers in
Dungarvan and other areas. In Labour Court Recommendation No.
11,419 the Court had recommended 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 did not recommend concession of other aspects of the
claim. The Company's offer concerning the application of the
terms of Labour Court Recommendation No. 11,419 to the workers at
Inch was on the basis that all other cost increasing claims were
removed. This offer was unacceptable to the Union which proposed
the following package:
(a) acceptance of the Dungarvan wage offer,
(b) That the double weeks wages paid to the Dungarvan workers
every Christmas should also be paid to the Inch workers.
(c) deferral of the Union's claim for £1,500 lump sum as paid at
Dungarvan.
This proposal was rejected by the Company. As the issue could not
be resolved through conciliation it was agreed that a reference
would be made to the Court. On 22nd February, 1988 the case was
referred to the Court for investigation and recommendation. A
Labour Court hearing was held on 22nd March, 1988 in Arklow.
UNION'S ARGUMENTS:
4. 1. This dispute could have been resolved if the Company had
agreed to treat its workers at Inch the same as its workers at
Dungarvan by conceding the Christmas payment of an extra weeks
pay.
2. The Company paid out an extra £1,500 to buy-out the
restrictive practices at Dungarvan. It should be more
generous with its employees at Inch who had not built up these
type of practices.
3. The Court in LCR. No. 11,399, which concerned
rationalisation in Dungarvan, stated that the Dungarvan
workers should accept the Company's proposals and that the
Company should increase its lead-in payment to £1,000 to each
employee concerned. The Company increased the lead-in payment
to £1,500.
COMPANY'S ARGUMENTS:
5. 1. In the present serious economic climate of the dairy
industry, the Company's financial position and the challenges
that lie ahead, the Company's offer is the best it can make.
The offer was made with the intention of keeping the maximum
settlement in any area in line with the general thrust of
Labour Court Recommendation No. 11,419. The Company also
required that the settlement terms should include a positive
commitment from all employees towards rationalisation of any
inefficient work practices in the areas concerned. All other
areas have made agreements in line with these requirements.
2. There is no good or valid reason why the situation in the
south-eastern area should be any different from that in other
areas and the level of settlement and adjustment in the pay
week should be applied on the same basis. Such a settlement
precludes any concessions being made on the claim for improved
service pay based as it is on the anomalous situation which
exists in Dungarvan.
5. 3. The level of service pay obtaining in respect of employees
in the south-eastern area is in line with the existing
arrangements in regard to all other employees in differing
locations.
4. Profits in the dairy industry are inadequate. From 1977
to 1985 only 3% of total funds available for investment came
from direct farmer contributions by way of share capital.
Capital grants received by co-operatives in the past are now
seriously restricted. Significant financial resources will be
required in the next 5 years if the Company is to survive.
5. The Company's approach to pay is no different to its
approach to all other headings of cost. Pay forms a very
substantial proportion of total costs and must be tightly
controlled.
RECOMMENDATION:
6. The Court having considered the submissions from both parties
recommends that the Union accept the same increases as set out in
Labour Court Recommendation No. 11,419 and on the same terms.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___21st___April,____1988. ___________________
T. O'M. / M. F. Deputy Chairman