Labour Court Database __________________________________________________________________________________ File Number: CD87935 Case Number: LCR11716 Section / Act: S67 Parties: HALAL MEAT PACKERS LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim by the Union on behalf of 35 workers for an increase in the Company's beef bonus scheme.
Recommendation:
5. Having considered the submissions made, the Court, on the
basis of the information before it, does not consider an
adjustment of the bonus rate is warranted and does not therefore
recommend concession of the Union's claim.
Division: Mr O'Connell Mr Heffernan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87935 RECOMMENDATION NO. LCR11716
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: HALAL MEAT PACKERS LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim by the Union on behalf of 35 workers for an increase in
the Company's beef bonus scheme.
BACKGROUND:
2. The beef bonus scheme was introduced in August, 1983. A bonus
rate of #1.60 per animal slaughtered in excess of 260 per day was
agreed then. The rate has not changed since 1983. The Union
originally submitted a claim for a revision of the scheme in June,
1986. The matter was subsequently referred to the conciliation
service of the Labour Court. Agreement could not be reached at
conciliation, but the Company did indicate that it would consider
a revised scheme along the lines of that applying on the 'lamb
line', (details provided to the Court). On 3rd September, 1987,
the Union again wrote to the Company seeking an increase in the
beef bonus by the same percentage applied to basic pay since the
scheme was introduced and agreement that in future the bonus would
be increased in line with basic pay. On 7th September, 1987, the
Company responded that it was not prepared to consider any
proposal which would have the effect of increasing the already
excessive unit cost in the plant. On 25th September, 1987, the
matter was again referred to the conciliation service of the
Labour Court. As no agreement could be reached at a conciliation
conference held on 3rd December, 1987, (the first date suitable to
the parties), the matter was referred to the Labour Court on 7th
December, 1987, for investigation and recommendation. A Court
hearing took place on 9th February, 1988, in Sligo.
UNION'S ARGUMENTS:
3. 1. The Company is one of the biggest in the meat business in
this country and indeed Europe. It is very profitable and
constantly expanding. In these circumstances there can be no
question of inability to pay.
2. It is clear that in order for the bonus to maintain its
value, as it was 5 years ago, then some adjustment must be
made.
3. The Company's offer to revise the scheme along the lines
of that applying on the 'lamb line' would not improve the
bonus. The workers can only slaughter approximately 340
animals in an 8 hour day, which would limit them to the bonus
level currently received.
4. The Union contends that the bonus must maintain its value
and therefore it is reasonable that wage agreement terms since
1983, and all future agreed wage increase levels should be
applied to the bonus.
COMPANY'S ARGUMENTS:
4. 1. The bonus scheme currently operating is a traditional
scheme which is very expensive from the Company's point of
view. The cost of the scheme rises as the number of animals
increases. The threshold is fixed - because it is based on a
daily rate it does not increase to take account of additional
working hours. Employees are also receiving overtime pay at
the same time. This causes a significant increase in unit
costs and has made the plant uncompetitive.
2. In the newer meat processing plants where automation
already decreases until costs, the traditional bonus scheme no
longer applies. Also there are a number of plants in which no
bonus pay is given at all, (details provided to the Court).
3. The Company's bonus scheme is very generous in terms of
the earning capacity it allows to employees. In 1985/86 each
employee received a bonus of #522.85, in 1987/88 the bonus
increased to #2317.05 per employee. The Company considers
that it is unreasonable to seek a further adjustment on top of
this natural development.
4. The Company believes that the scheme is in need of review,
but that the revision must take account of the current
situation. As a result, a more restrictive scheme, in line
with what is being applied elsewhere, is what is needed.
RECOMMENDATION:
5. Having considered the submissions made, the Court, on the
basis of the information before it, does not consider an
adjustment of the bonus rate is warranted and does not therefore
recommend concession of the Union's claim.
~
Signed on behalf of the Labour Court
John O'Connell
________________________
24th February, 1988. Deputy Chairman
B.O'N/J.C.