Labour Court Database __________________________________________________________________________________ File Number: CD88361 Case Number: LCR11985 Section / Act: S67 Parties: NEWMARKET CO-OPERATIVE CREAMERIES LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS UNION |
Claim on behalf of approximately 47 workers for an increase in annual bonus.
Recommendation:
5. The Court, having considered the submissions made by the
parties, does not recommend concession of the Union's claim in the
light of existing circumstances.
Division: Mr Fitzgerald Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD88361 RECOMMENDATION NO. LCR11985
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: NEWMARKET CO-OPERATIVE CREAMERIES LIMITED
(Represented by the Irish Co-Operative
Organisation Society Limited)
and
IRISH TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claim on behalf of approximately 47 workers for an increase in
annual bonus.
BACKGROUND:
2. In 1984 the Union made a claim on the Co-Operative for the
introduction of a bonus. Discussions on this were deferred at the
request of management and in the 26th wage round negotiations the
Union made a claim for the introduction of a 4% bonus. At a
conciliation conference held in December, 1986, it was agreed that
a 2% bonus would be applied from 1st July, 1987. The 26th wage
round expired at the end of December, 1987, and in discussions on
the 27th wage round it was agreed that the terms of the National
Plan would apply. However, the Union claimed that the 2% bonus
agreed in the previous wage round had been accepted on the
understanding that a full 4% bonus would be introduced later on a
phased basis. This was rejected by management and on 4th March,
1988, the matter was referred to the Conciliation Service of the
Labour Court. A conciliation conference was held on 27th April,
1988, at which agreement could not be reached and on 13th May,
1988, the matter was referred to the Labour Court for
investigation and recommendation. The Court investigated the
dispute on 26th July, 1988.
UNION'S ARGUMENTS:
3. 1. The original claim for the introduction of a bonus and
later discussions were based on the understanding that a 4%
bonus would be introduced and that the 2% was an interim
payment. The Co-operative, which is situated in the North
Cork area, is the only one of the five Co-operatives in this
area not as yet paying the full 4% bonus. In the remaining
County Cork area most Co-operatives are paying the full 4%
bonus (details supplied to the Court). In addition the wage
rates in this Co-operative are lower than others in the North
Cork area. This Co-operative should stay in line with other
Co-operatives in the North Cork area and generally in the
Cork County area and pay the full 4% in 1988.
2. The number of workers in the Co-operative has been
declining steadily over the years through retirement, etc.
and is now down approximately 16% while at the same time
profits have increased considerably. Due to the new work
methods introduced by management the application of the 4%
can be self-financing and in this case management is not
restricted under the terms of the National Plan from
increasing the bonus. The full 4% should be applied in 1988.
CO-OPERATIVE'S ARGUMENTS:
4. 1. This Co-operative in line with others has been
experiencing difficult trading conditions in recent years.
Due to over supply, quota restrictions have been introduced
on milk supply resulting in the reduction of throughput
(details supplied to the Court). For the Co-operative to
survive and develop, a certain level of profit is required.
Despite the fact that this Co-operative's nett surplus has
been below the norm in recent years it has maintained
workers' earnings. Between 1982 and 1987 the total payroll
increased by 38% and the basic rate of pay by 37% (39.5%
including 2% bonus) while sales increased by only 32%. The
estimated additional cost of concession of the claim would be
£9,500 and there could also be repercussive costs of
approximately £4,000 per annum.
2. The rates of pay of the workers have remained close to
the average in the industry (details supplied to the Court)
and a further increase in bonus is not warranted. So far, 7
co-operatives which are not paying a 4% bonus have concluded
agreements incorporating the National Plan which do not
include an increase in the bonus. The Co-operative gave no
commitment beyond the 2% bonus which it currently pays and
the Union's claim is in breach of Clause 4 of the National
Plan regarding further cost increasing claims (details
supplied to the Court).
RECOMMENDATION:
5. The Court, having considered the submissions made by the
parties, does not recommend concession of the Union's claim in the
light of existing circumstances.
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Signed on behalf of the Labour Court
9th August, 1988 Nicholas Fitzgerald
U.M./P.W. Deputy Chairman