Labour Court Database __________________________________________________________________________________ File Number: CD87701 Case Number: LCR11618 Section / Act: S67 Parties: SOUTH EASTERN CATTLE BREEDING SOCIETY (S.E.C.B.S.) - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim on behalf of approximately 80 workers employed as A.I. inseminators and laboratory staff under the 27th wage round.
Recommendation:
5. The Court having considered the submissions from both parties
recommends as follows:-
Pay - 3% increase from 1st April, 1987 and a further
1% from 1st January, 1988. Agreement to
terminate on 31st March, 1988.
Call bonus - Percentage increases as on pay and dates of
implementation as above.
Car allowance - An increase in accordance with the C.P.I. from
the date the last increase was granted with
effect from 1st April, 1987.
The Court further recommends that the parties negotiate manning
levels during the currency of this agreement.
Division: Ms Owens Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87701 RECOMMENDATION NO. LCR11618
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: SOUTH EASTERN CATTLE BREEDING SOCIETY (S.E.C.B.S.)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim on behalf of approximately 80 workers employed as A.I.
inseminators and laboratory staff under the 27th wage round.
BACKGROUND:
2. 1. The S.E.C.B.S. is a co-operative Society engaged in the
provision of an artificial insemination (A.I.) service in the
counties of Tipperary, Waterford, Kilkenny, Laois and Offaly.
Of the 80 workers employed by the Society, 26 are permanent,
the remainder being employed on a seasonal basis. The basic
rate of pay is #175.90 per week. In addition the workers are
paid a bonus of 26.52p per call (first and repeats). The
workers who use their own car are paid 39.09p per call plus a
daily car allowance which is currently #13.71 per day.
2. The 26th wage round expired on 31st March, 1987. By
letter dated 25th February, 1987 the Union lodged the
following claim under the 27th wage round:-
(1) An increase of 8% on basic wage.
(2) An increase of 5p in the call bonus.
(3) An increase in the daily car allowance in line with
consumer price index (C.P.I.) from August, 1985 to
August, 1987.
(4) Commission to be paid to those collecting cash as is
done for creameries collecting accounts.
At a meeting held between the parties on 9th April, 1987 the
Society sought a 2 year pay freeze. This was subsequently
modified to a one year pay freeze at a later meeting.
3. As the Society's response did not meet the Union's
aspirations, the matter was referred to the conciliation
service of the Labour Court on 1st July, 1987. A conciliation
conference was held on 14th August, 1987. At the conference
the Society offered an increase of 3% for 12 months from 1st
July, 1987. This was subsequently amended to 3% for 12 months
from 1st April, 1987 subject to the Society obtaining 2
redundancies in the winter staffing. This offer was not
acceptable to the Union and both parties agreed to a referral
to the Labour Court for investigation and recommendation. A
Court hearing was held in Thurles on 24th November, 1987, a
date suitable to both parties.
UNION'S ARGUMENTS:
3. 1. Increase in pay and call bonus
An annualised increase of 4.25% in basic pay was the best
offer in 1986 when the national norm was 6%. Taking into
account that no increase for call bonus or car allowance was
offered the figure of 4.25% was not the true increase at all.
2. The fall in farmers income in 1986 was cited during the
negotiations in 1986. Farmers income is forecast to increase
by 15% in 1987. If below average increases have to be
accepted during bad years then it follows on that the workers
should benefit in "good years".
3. The workers have contributed exceptional productivity
since 1985, and 6 permanent posts have disappeared due to
retirement, co-operation in D.1.1. scheme and in computer
documentation.
4. Increase in car allowance
The A.A. figure for increase in car costs, since last
adjustment, for the workers is 7.87%. We submit that A.A.
figures are more appropriate for adjusting car allowance than
C.P.I. The C.P.I. increase for same period is cumulative
6.3%. Only about 12 workers drive their own cars and only
this small number are therefore part of this claim.
5. Commission for collecting cash
The vast majority of users of A.I. service are creamery
suppliers and cost of the service is deducted at source by the
creameries from the individuals and remitted to S.E.C.B.S.
The creameries deduct between 2.50% and 5% collection fee from
same. Less than 1% of users pay directly and the claim is
that inseminators should receive the 5% fee as creameries do
for collecting cash.
SOCIETY'S ARGUMENTS:
4. 1. Increase in pay
The Society considered the claim in the light of its revenue
situation (details supplied to the Court). It also examined
the claim in the light of the C.P.I. At the end of the 23rd
pay round on the 31st December, 1983 the rate of pay was
#147.86. It is now #175.90, an increase of 19%. The C.P.I.
for the period mid-November, 1983 to mid-February, 1987
increased by 17.6%. Inflation is currently running at 3% per
annum. The Society has offered 3% for 12 months (conditional
on a reduction of winter staffing).
2. In the Society's view the offer is reasonable, bearing in
mind the serious decline in the Society's business. The offer
maintains the value of pay vis-a-vis the C.P.I. it also
leaves its employees in a reasonable position compared to
other A.I. employees.
4. 3. Increase in call bonus
In addition to basic pay, A.I. operators are paid an allowance
for each insemination carried out by them. The allowance is
paid in two parts, one as additional revenue - which we term
the call bonus - and the other as a tax-free expense to those
who use their own cars on Society business. The current value
of the call bonus is 26.52p per insemination. On average a
permanent A.I. operator would carry out 3,418 calls per year,
while a seasonal operator would carry out 2,729 calls. The
bonus therefore, is worth #906 to a permanent operator and
#724 to a seasonal operator on average.
4. The call bonus was last increased under the 25th pay
round. No claim was lodged for an increase under the 26th
round. The current claim is to increase the 26.52p allowance
by 5p which represents an increase of 19.9%. In the Society's
view there can be no basis for an increase of such magnitude.
A comparison of earnings in the Society with other A.I.
stations clearly shows that the Society pays comparable rates.
It is the Society's view that its offer to increase the basic
pay rate is sufficient in all circumstances.
5. Increase in car allowance
Workers who use their own cars on Society's business are
compensated for the additional costs involved in two ways.
They are paid an allowance of 39.03p per insemination, on all
inseminations made. In addition they are paid a daily car
allowance of #13.71 per day. It is the Society's view that
these payments adequately cover the costs of providing a car.
6. Each year the Automobile Association publish a schedule of
estimated running costs. These indicate that the costs of
operating a car was less in 1986 than in 1985, while in 1987
the cost is only marginally higher than in 1985. On the basis
of these figures, the expenses paid by the Society more than
adequately cover the cost of providing a car on the Society's
business. In all the circumstances the Society's view that
there is no justification for an increase in car expenses.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends as follows:-
Pay - 3% increase from 1st April, 1987 and a further
1% from 1st January, 1988. Agreement to
terminate on 31st March, 1988.
Call bonus - Percentage increases as on pay and dates of
implementation as above.
Car allowance - An increase in accordance with the C.P.I. from
the date the last increase was granted with
effect from 1st April, 1987.
The Court further recommends that the parties negotiate manning
levels during the currency of this agreement.
~
Signed on behalf of the Labour Court.
7th January, 1988 Evelyn Owens
M.D./M.F. Deputy Chairman