Labour Court Database __________________________________________________________________________________ File Number: CD87875 Case Number: LCR11686 Section / Act: S67 Parties: V'SOSKE JOYCE LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim on behalf of 20 workers for an increase in basic pay under the 27th wage round.
Recommendation:
8. The Court having considered the submissions made by the
parties, recommends a pay agreement of 12 months duration as
follows -
3% wage increase with effect from 1st August, 1987,
followed by 3% wage increase with effect from 1st February, 1988.
Division: Mr Fitzgerald Mr Collins Mr O'Murchu
Text of Document__________________________________________________________________
CD87875 RECOMMENDATION NO. LCR11686
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: V'SOSKE JOYCE LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim on behalf of 20 workers for an increase in basic pay
under the 27th wage round.
BACKGROUND:
2. The Company is a small family owned business based in
Oughterard. It employs 30 workers and is engaged in the
manufacture of high quality custom designed hand-tufted carpets
and wall hangings mainly for the export market.
3. The workers involved in the manufacture of hand-tufted carpets
may be divided into different categories (details supplied to the
Court). All the employees working in the various areas are called
"carpet makers" and the current rate of basic pay is #157.38 a
week. Service pay is applied to basic rates at 2.50% for every 7
years of service.
4. The 26th wage round expired on the 31st July, 1987. The
Union, at a meeting held on 21st September, 1987, lodged a claim
for an increase of 12% for a twelve month period subsequently
modified to 10%. In response the Company offered an increase of
3% for twelve months. This offer was rejected by the Union.
5. The matter was referred to the conciliation service of the
Labour Court on 23rd September, 1987. A conciliation conference
was held on 11th November, 1987. As no agreement was possible
both parties agreed to refer the issue to the Labour Court for
investigation and recommendation. A Court hearing was held in
Galway on 27th January, 1988.
UNION'S ARGUMENTS:
6. 1. The Company's offer of 3% is not realistic as it fails to
bring the current wage rates up to an acceptable level for
the type of work involved. The work requires great skill and
dexterity and is of a highly specialised nature.
2. The workers have contributed to increased productivity as
there had been an increase in output despite a reduction in
the workforce due to redundancy.
3. The wage rates do not compare favourably with those paid
in industry generally or with those paid by other carpet
manufacturers in the country (details supplied to the Court).
If the Company is to maintain the commitment of its workforce
in the manufacture of carpet, then it is necessary for the
Company to keep its wage rates in line with industry in
general.
COMPANY'S ARGUMENTS:
7. 1. The Company considers that the basic rate of pay does, in
general terms, represent a fair remuneration for the work
carried out. The present rates have been achieved through
the granting of very generous increases over the past number
of years in line with a commitment by the present Management
to the workers when they took over the Company eight years
ago (details supplied to the Court).
2. The Company's business is sporadic. It is entirely
dependent on orders being received for specific carpets.
Most of these orders come from the U.K. and the Middle East.
The Company has to contend with a difficult market situation
and competition from the Far East where production costs are
much lower. Thus the business which the Company has been
able to maintain has been at considerably reduced profit
margins. This means that the scope for anything but the
minimal increase in labour costs does not exist.
3. The past two years have been particularly difficult for
the Company. Almost all the workers had to be laid-off in
the earlier part of 1987, and overtime over the period has
been substantially reduced as a result of reduced business
activity.
RECOMMENDATION:
8. The Court having considered the submissions made by the
parties, recommends a pay agreement of 12 months duration as
follows -
3% wage increase with effect from 1st August, 1987,
followed by 3% wage increase with effect from 1st February, 1988.
~
Signed on behalf of the Labour Court
12th February, 1988 Nicholas Fitzgerald
M.D./P.W. Deputy Chairman