Labour Court Database __________________________________________________________________________________ File Number: CD87731 Case Number: LCR11713 Section / Act: S67 Parties: IRISH CLAY INDUSTRIES - and - FEDERATED WORKERS' UNION OF IRELAND |
Claim for a 27th wage round agreement.
Recommendation:
5. The Court having considered the submissions from both parties
and taking into account the financial position of the Company
recommends that the terms of the Programme for National Recovery
as agreed between the ICTU, FUE and CIF be applied to the
claimants commencing on 1st January, 1988.
Division: Ms Owens Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD87731 RECOMMENDATION NO. LCR11713
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: IRISH CLAY INDUSTRIES
(REPRESENTED BY THE CONSTRUCTION INDUSTRY FEDERATION)
AND
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Claim for a 27th wage round agreement.
BACKGROUND:
2. This claim concerns 53 general operatives, fitters and kiln
men employed by the Company at Castlecomer, Co. Kilkenny. The
26th wage round agreement terminated for these workers on 30th
June, 1987. At present the general operatives have a weekly basic
rate of pay of #134.24 and are paid an average bonus of #40 to #45
per week. The fitters have a rate of pay of #168.16 plus an
average bonus of #40 to #45 and the kiln mens' basic rate is
#212.37 inclusive of shift rate plus an average bonus of #40 to
#45. The kiln mens' rates apply to a 43 hour week. The Union
claimed a substantial wage increase. The Company rejected the
claim. No agreement was reached through local negotiations and on
8th July, 1987 the matter was referred to the conciliation service
of the Labour Court. A conciliation conference was held on 11th
September, 1987 but no agreement was reached. On 29th September,
1987 the case was referred to the Labour Court for investigation
and recommendation. A Labour Court hearing was held on 2nd
February, 1988 in Kilkenny.
UNION'S ARGUMENTS:
3. 1. The workers original claim was for substantially more than
is catered for in the Programme for National Recovery but
because they recognise the Company's market difficulties they
would accept the wage increases set out in the national plan
plus an agreement from the Company to talk about a shorter
working week at the end of 1988.
2. The Programme for National Recovery was drawn up in order
to facilitate companies, both in the public sector and private
sector, with difficulties and as a result moderate pay
increases were recommended and agreed.
3. It is essential that the increases in the Programme for
National Recovery be applied to the workers. Clause 5 of the
proposals for an agreement between the ICTU, the FUE and the
CIF, of which the Company is a member, reads as follows:
"Except where otherwise agreed at local level these
arrangements shall apply from the expiry dates of the current
employer/union agreements"
3. 3. The Union has made no agreement to alter the terms of the
Programme for National Recovery. Those terms should be
applied to the workers from the expiry date of the current
agreement which was 30th June, 1987.
COMPANY'S ARGUMENTS:
4. 1. The decline in the construction industry over the past
seven years has lead to a decrease in the Company's sales from
22.5 million bricks in 1978 to 12.4 million in 1986. The
manufacturing capacity of the Company's plant is approximately
40 million bricks per year. Break-even point is a minimum of
13 million bricks selling into the home market at realistic
prices. The past two years have been disastrous for the
Company with substantial financial losses as a result of below
cost selling and below break-even point in volume sales. In
an effort to get back to a break-even situation the Company
has entered into the United Kingdom market and 2.5 million
bricks of its total sales for 1987 were sold there below cost.
2. The Company is in a critical financial position due to the
market conditions. It cannot survive on its share of a
declining home market for 1988 or indeed for the foreseeable
future given the current projected state of the construction
industry, Government policy and the state of the public
finances.
3. The Company must find a substantial market in the United
Kingdom for first quality paving bricks if it is to survive.
Selling prices are competitive there compared to the home
market. The Company must keep its manufacturing costs to a
minimum as it will have additional haulage costs. The Company
must at least hold its manufacturing costs at current levels
in addition to increased efficiency and productivity.
4. Any increase in costs is presently impossible and would
almost certainly cause immediate company collapse because of
the Company's present critical financial position, the state
of the home market and the delicate position in the United
Kingdom.
5. The Company appreciates the responsible, mature, and
understanding attitude of the workers. It is virtually
totally dependent for survival on this attitude continuing.
The Company can secure its future if there is a continuation
of the present commitment from the workers and an acceptance
of the Company's position.
6. The Company is committed to making a reasonable pay offer
to the workers at the first available opportunity but for the
present it must seek a wage freeze. The Company will meet the
Union on a three month basis to review its position.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
and taking into account the financial position of the Company
recommends that the terms of the Programme for National Recovery
as agreed between the ICTU, FUE and CIF be applied to the
claimants commencing on 1st January, 1988.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___24th___February,__1988. ___________________
T. O'M. / M. F. Deputy Chairman