Labour Court Database __________________________________________________________________________________ File Number: CD87847 Case Number: LCR11623 Section / Act: S67 Parties: ROWNTREE MACKINTOSH (IRELAND) PLC - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION |
Claim on behalf of approximately 70 workers for increases in respect of the 27th wage round.
Recommendation:
7. In the light of submissions made by the parties the Court
recommends that the employers offer be amended to provide for an
increase of #1 on each band of the service pay and that the offer
so amended be accepted by the workers concerned.
Division: Mr O'Connell Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87847 RECOMMENDATION NO. LCR11623
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: ROWNTREE MACKINTOSH (IRELAND) PLC
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim on behalf of approximately 70 workers for increases in
respect of the 27th wage round.
BACKGROUND:
2. In June, 1987 the Union, served a claim on the Company in
respect of the 27th wage round as follows:
- a reasonable increase in basic rates (approximately 5%-6%
for a twelve month period),
- Company to pay in full V.H.I. plan P which covers new
hospital charges,
- an increase in service holidays and service pay.
3. This was unacceptable to the Company and on 30th July, 1987
the matter was referred to the conciliation service of the Labour
Court. A conciliation conference took place on 16th September,
1987 and the Company's final offer was:
- an increase of 3.50% in basic rates with effect from 1st
June, 1987,
- service pay to be adjusted upwards by 8.50% (carryover of 5%
from 26th wage round together with 3.50% from 27th wage
round),
- Company to pay 50% of the cost of V.H.I. Plan P.
4. No agreement could be reached and on 10th November, 1987 the
matter was referred to the Labour Court for investigation and
recommendation. The Court investigated the dispute on 2nd
December, 1987.
UNION'S ARGUMENTS:
5. 1. Since the major re-organisation of the Company in 1986
the workers have suffered a loss of overtime and have changed
from shift work to day work on a 40 hour week. This change
in the work pattern has resulted in a real drop in earnings
up to as much as #90 per week, spread over most of the
workforce. While a compensation package was agreed this
ceased in September, 1987 and the full effects of the loss of
earnings are now being felt by the workers. The Company
should therefore agree to a reasonable increase in respect of
this wage round.
5. 2. The Union's claim for a wage increase is in line with a
number of agreements already concluded in other companies
(details supplied to the Court). The Company did not suffer
any losses in sales with the redundancies in 1986 as products
formerly manufactured in Dublin are now imported from the
United Kingdom.
3. The full cost of the V.H.I. Plan P ranges from just over
#9 per annum for a single worker up to #24 per annum for a
married couple with two children. It would not be an
enormous financial burden for the Company to pay the full
cost of the plan. A major competitor has agreed to pay #72
per annum per worker towards V.H.I. cover.
4. Service holidays presently range from one day for 10
years service to four days for 25 years service, these
service holidays should start at one day for 5 years' service
and be increased by one day correspondingly upwards up to
five days for 25 years service. Service pay presently ranges
from #1.16 after 5 years service to #5.80 for 30 years
service. The Company's offer would only increase these rates
by 10p at the bottom and 49p at the top service range. Each
band should be increased by a minimum of #3 which even then
would not match the service pay of the Company's main
competitors which in excess of #15 for 30 years service.
COMPANY'S ARGUMENTS:
6. 1. A major re-organisation took place in the Company in
1986. This involved discontinuing loss-making products,
investing approximately #2.5m to improve operating costs in
the manufacture of the remaining products and a complete
re-organisation of the business requiring around 400
redundancies. This action was necessary in order to ensure
the future survival of the business as competition
(particularly imports) had become very severe, manufacturing
and distributing costs were too high and the Company was not
generating profits.
2. In order to finance the cost of redundancies and
investments, the Company will have borrowed approximately
#12m which has to be serviced and the principle paid back.
Interest charges per annum are #1.5m and it will take over 4
years to clear the debt.
3. Cost increases above inflation cannot be passed on to the
consumer and in many cases no cost increase is possible due
to competitive pressure. The Company's offer in respect of
this wage round is in excess of the annualised inflation
figure and in line with competitors in the sugar
confectionery industry. The Company is working at
maintaining its market share and further cost increases will
damage its competitiveness.
6. 4. Over the next few years the Company must concentrate on
consolidating the improved financial base set up with the
major re-organisation that took place in 1986. It is only by
taking such action that employment in the Company will be
secure.
RECOMMENDATION:
7. In the light of submissions made by the parties the Court
recommends that the employers offer be amended to provide for an
increase of #1 on each band of the service pay and that the offer
so amended be accepted by the workers concerned.
~
Signed on behalf of the Labour Court.
John M. Horgan
__6th___January,___1988. ___________________
U. M. / M. F. Deputy Chairman