LCR11689

Subject:
Claim on behalf of approximately 43 workers for a wage increase under the 27th wage round.

Recommendation:
6. The Court accepts that the Company is not presently in a
position to make positive arrangements as regards the future and
would have difficulty in meeting the costs of implementing the pay
round from its due date on the 1st November, 1987. However, in
order to sustain the present good relations, the Court recommends
that the first phase of the terms provided in the National
Recovery Programme be paid with effect from 1st January, 1988.

Division: Mr O'Connell Mr Heffernan Ms Ni Mhurchu

Text of Document__________________________________________________________________

CD883 RECOMMENDATION NO. LCR11689

INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67


PARTIES: CA PARSONS LIMITED
(Represented by the Federated Union of Employers)
and
FEDERATED WORKERS' UNION OF IRELAND
AMALGAMATED UNION OF ENGINEERING WORKERS
IRISH WOMEN WORKERS' UNION
MANUFACTURING SCIENCE FINANCE UNION




SUBJECT:
1. Claim on behalf of approximately 43 workers for a wage
increase under the 27th wage round.

BACKGROUND:
2. Up to 1985 the Company was owned by Northern Engineering
Industries, who after a series of rationalisations, closed down
the heavy engineering division in 1984. In 1985, the remaining
part, the office equipment division, was purchased by Vickers PLC.
At present the Company manufactures steel storage products (filing
cabinets, lockers, presses etc) for sale on the home market.

3. The 26th round for the workers expired on the 31st October,
1987, but following local level discussions, no agreement on the
27th round could be reached. The Company informed the Union that
due to severe financial problems, caused mainly by the contraction
of its main sales area, the public sector, it was unable to offer
any wage increase and asked that the claim be held in abeyance
until March/April, 1988. This was rejected by the Unions and on
the 2nd November, 1987, they referred the dispute to the
conciliation service of the Labour Court. A conciliation
conference on the 14th December, 1987, failed to resolve the issue
and on the 4th January, 1988, the matter was referred to the
Labour Court for investigation and recommendation. On the 8th
January the Unions were informed that Vickers PLC had decided to
offer for sale its Office Furniture Divisions in the U.K., France,
Germany, U.S.A. and Ireland. A Court hearing was held on the 1st
February, 1988.

UNION'S ARGUMENTS:
4. 1. Were the Unions to accept the initial response of
Management to await further negotiations in March or April,
they would no longer be dealing with Vickers as such but
instead a new employer or perhaps no employer at all.

2. It is the Unions' contention that the 27th round should
be conceded by Vickers prior to selling off the Company.
Taking cognisance of the sale price of Comforto Vickers
Division which the Unions estimate is in the region of #50m,
the imposition of the terms of the Programme for National
Recovery would not be an unfair burden for the Company to
accept and the Unions urge the Court to recommend that these
terms be implemented from the 1st November, 1987.

3. The outcome of the proposed sale of Comforto Vickers
Division and its consequential effects on the workforce in
C.A. Parsons in Dublin is something which the Unions will have
to contend with at some future stage. At present the Unions'
prime concern is to see the 27th wage round increase
implemented.

COMPANY'S ARGUMENTS:
5. 1. The expectations of increased sales of filing cabinets
and furniture came to nothing in 1987. Government cutbacks
and recession resulted in a severe drop in home sales and the
Company was forced to introduce short time working on a week
on/week off basis from 8/6/87 to 24/8/87.

2. Full production resumed with an order to manufacture
cabinets at cost for the Parent Company. This is in effect
subsidised manufacture to keep the Company at full capacity in
the short term.

3. The decline in sales has meant that the Company's
financial situation is now critical. Heavy losses have been
incurred in 1987 (Company's audited accounts submitted to the
Court).

4. Since the purchase by Vickers, the Company has increased
wages and salaries as follows:-

- 31st October, 1985 - 5% for six months followed by 3%
for six months.

- 31st October, 1986 - 6% for twelve months.

The average basic weekly wage is #150. In addition, the
Company pays various bonuses which bring average earnings for
shop floor operatives up to #190 per week.



RECOMMENDATION:

6. The Court accepts that the Company is not presently in a
position to make positive arrangements as regards the future and
would have difficulty in meeting the costs of implementing the pay
round from its due date on the 1st November, 1987. However, in
order to sustain the present good relations, the Court recommends
that the first phase of the terms provided in the National
Recovery Programme be paid with effect from 1st January, 1988.
~

Signed on behalf of the Labour Court

John O'Connell
15th February, 1988 -----------------
D.H./U.S. Deputy Chairman