Labour Court Database __________________________________________________________________________________ File Number: CD88350 Case Number: LCR11995 Section / Act: S67 Parties: MACROOM DAIRIES LIMITED - and - IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION |
Claim on behalf of 20 workers for an increase in pay in respect of the 27th wage round.
Recommendation:
5. The Court, having considered the submissions made by the
parties and noting the financial position of the Company,
recommends that the parties should meet in January next to review
the question of a wage increase in the light of the financial
position obtaining at the time.
Division: Mr Fitzgerald Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD88350 RECOMMENDATION NO. LCR11995
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: MACROOM DAIRIES LIMITED
(Represented by the Federated Union of Employers)
and
IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION
SUBJECT:
1. Claim on behalf of 20 workers for an increase in pay in
respect of the 27th wage round.
BACKGROUND:
2. The Company is involved in the manufacture of bread and
confectionery and operates a number of retail confectionery shops
in the Cork City area employing approximately 20 retail sales
assistants. The 26th wage round for the workers expired on 30th
September, 1987, and the Union on behalf of the workers made a
claim for a 27th wage round increase in line with the rest of the
distributive trade, i.e. 5% plus £1.50 on the top point of the
scale in two phases for a 15 month period. A local level meeting
took place in December, 1987, at which the Company stated that it
was continuing to experience serious trading difficulties and was
not in a position to pay any increases under the 27th wage round
at that time. The Company proposed that a meeting be held in
June, 1988, to review the situation. This was unacceptable to the
Union and on 11th January, 1988, the matter was referred to the
Conciliation Service of the Labour Court. A conciliation
conference was held on 2nd March, 1988, at which no progress was
made and in May, 1988, a full Labour Court hearing was requested.
A local level meeting took place in July, 1988, however the
Company's position remained the same. The Court investigated the
dispute on 27th July, 1988.
UNION'S ARGUMENTS:
3. 1. At this stage there is a serious credibility problem
regarding the Company's stated financial situation,
particularly when practices, such as the lodgement of cash on
a weekly basis, would indicate a satisfactory financial
position. The Union and the workers have already shown
considerable understanding and in the 26th wage round agreed
to a substantial pay pause which did not apply elsewhere in
the retail trade.
2. It is unrealistic to now expect the workers to accept a
pay freeze for an indefinite period. The pay rates in the
Company are already low compared to others in the trade
(details supplied to the Court) and if the existing rates are
not increased pay rates will be established which for many
will be less than established by the Joint Labour
Committees. A 27th wage round increase in line with that
applicable in the Cork retail trade generally should be
applied.
COMPANY'S ARGUMENTS:
4. 1. For a number of years the Company has not been trading
well and this situation has deteriorated recently (details
supplied to the Court). The Company has also given the Union
the opportunity to examine its audited accounts. However the
Union has declined this offer. One of the major factors
which has reduced and eliminated the margins required for an
established Company like this to remain viable has been the
growth of "home baked products" which are sold without VAT
added on.
2. Management is currently trying to restructure the Company
which will include a reduction in the number of retail
outlets with consequent implications for all other categories
employed within the Company. The Company cannot and will not
be able to afford to pay any increases in the short to medium
term. However, it is willing to keep the workers fully
informed of the situation on an ongoing basis and will
undertake to review wages as soon as the financial position
of the Company allows it. The Company's position is fair and
reasonable in the circumstances.
RECOMMENDATION:
5. The Court, having considered the submissions made by the
parties and noting the financial position of the Company,
recommends that the parties should meet in January next to review
the question of a wage increase in the light of the financial
position obtaining at the time.
~
Signed on behalf of the Labour Court
16th August, 1988 Nicholas Fitzgerald
U.M./P.W. Deputy Chairman