Labour Court Database __________________________________________________________________________________ File Number: CD87880 Case Number: LCR11630 Section / Act: S67 Parties: SMURFIT CORRUGATED CASES LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim for the introduction of a bonus scheme for clerical employees.
Recommendation:
5. In view of the history of the payment of bonus in the Company
and developments which took place in 1983, the Court considers
that a bonus scheme for clerical workers should be introduced.
Conscious however of the present financial position of the
Company, the Court does not feel it would be justified in
recommending the introduction of such a scheme at present.
The Court recommends that the sub-committee set up to investigate
this matter should re-convene in June, 1988, to review the
position in the light of the then financial situation of the
Company.
Division: Ms Owens Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87880 RECOMMENDATION NO. LCR11630
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: SMURFIT CORRUGATED CASES LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for the introduction of a bonus scheme for clerical
employees.
BACKGROUND:
2. As part of a rationalisation plan in 1983 the clerical staff
lost their bonus scheme. It was agreed at the time that should
the Company return to profitability in the future, the question of
reinstating the bonus would be considered. Towards the end of
1986, the Union met with Management to negotiate the
implementation of a bonus scheme for the clerical staff. One of
the Union's arguments was that as bonus continues to be paid in
the production area a bonus scheme should be introduced for the
clericals. Management, in response, argued that the production
bonus was self-financing and that any scheme for the clerical
staff would have to be likewise. No local level progress was made
and on the 21st November, 1986, the issue was referred to the
conciliation service of the Labour Court. At conciliation it was
agreed to refer the matter back to local level where a
sub-committee was set up to draw up proposals for a self-financing
scheme. No agreement could be reached however and on the 24th
November the matter was referred to the Labour Court for
investigation and recommendation. A Court hearing was held on the
3rd December, 1987.
UNION'S ARGUMENTS:
3. 1. Following the conciliation conference when the issue was
referred back to local level talks, the Union side put
forward comprehensive proposals which would have more than
adequately paid bonus earnings to the claimants without a
cost increase to the Company. Management put forward no
proposals at all and the Union is seriously calling into
question the Company's sincerity on the issue.
2. All the process workers who would be considered to be
indirects such as fitters, electricians and cleaners are paid
an average bonus of between #55 to #75 per week and there is
no reason why the clerical staff should not be treated any
less favourably.
3. All those currently earning bonus payments could not do
so without the involvement of the clerical staff.
COMPANY'S ARGUMENTS:
4. 1. When the clerical bonus payment was terminated arising
out of the crisis negotiations at the end of 1983, it was
only one of a number of changes in conditions of employment
necessitated by the serious financial predicament of the
company.
2. The commitment given by the Company at that time was that
if it should become stable and profitable in the future, the
question of re-instating this bonus would be looked at. It
has been repeatedly stated by Management that the position of
the Company in the market place continues to be extremely
difficult. In the Chief Executive's letter to the Union
dated the 13th November, 1986, it was stated quite clearly
that the Company did not, and does not, have the resources to
bear the cost increases which would accrue from the
introduction of a clerical bonus scheme. He further pointed
out that there has been no real growth in the corrugated
market and that the Company was struggling to continue to
retain volumes at the expense of drastically reduced margins.
The Company's position has not changed in this regard.
3. The Company has engaged in earnest efforts together with
the employees to seek a means of implementing a self
financing bonus scheme. Such efforts have come to no avail
and while the company regrets this, it cannot consider any
other method of financing a bonus payment other than on a
self funding basis.
4. The rates of pay to clerical employees at Smurfit
Corrugated Cases (Dublin) are among the highest in the
Industry and in view of the extremely competitive nature of
this Industry, the payment of an ex-gratia bonus in addition
to these rates would have serious repercussions for the
Company.
RECOMMENDATION:
5. In view of the history of the payment of bonus in the Company
and developments which took place in 1983, the Court considers
that a bonus scheme for clerical workers should be introduced.
Conscious however of the present financial position of the
Company, the Court does not feel it would be justified in
recommending the introduction of such a scheme at present.
The Court recommends that the sub-committee set up to investigate
this matter should re-convene in June, 1988, to review the
position in the light of the then financial situation of the
Company.
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Signed on behalf of the Labour Court
8th January, 1988 Evelyn Owens
D.H./P.W. Deputy Chairman