Labour Court Database __________________________________________________________________________________ File Number: CD87837 Case Number: LCR11634 Section / Act: S67 Parties: T.N.T. IPEC IRELAND LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim on behalf of 25 clerical and supervisory workers for an increase in basic pay under the 26th wage round.
Recommendation:
5. The Court having considered the submissions from both parties
and taking into account the position of the Company recommends an
increase of 4% from 1st January, 1988 in respect of the 26th round
claim. The agreement to terminate on 30th September, 1988.
Division: Ms Owens Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87837 RECOMMENDATION NO. LCR11634
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: T.N.T. IPEC IRELAND LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim on behalf of 25 clerical and supervisory workers for an
increase in basic pay under the 26th wage round.
BACKGROUND:
2. The Company provides an express freight delivery service
throughout Ireland. It currently employs 52 workers. The Company
originally operated from two Dublin locations - Dun Laoghaire and
Coolock. Following a rationalisation programme which involved a
number of redundancies the Company transferred its entire
operation to Coolock. There are also a number of depots around
the country. The 25th wage round expired on the 31st December,
1986. Because of problems which arose during the rationalisation
programme negotiations on the pay round were delayed. The Union
lodged a claim for an increase of 6% for 12 months from 1st
January, 1987 and indicated that a phased increase would be
acceptable. The Company responded that because it was in a
serious loss making situation it was not in a position to make any
offer on the pay round. The matter was referred to the
conciliation service of the Labour Court on 16th September, 1987.
A conciliation conference was held on 2nd November, 1987. As no
agreement was possible both parties agreed to a referral to the
Labour Court for investigation and recommendation. A Court
hearing was held on 11th December, 1987.
UNION'S ARGUMENTS:
3. 1. Over the last few years there have been a number of
changes in Management and in policy with which these workers
have co-operated. The effect of these changes was that the
ordinary industrial relations issues such as the wage round
were pushed into the background.
2. The financial state of the Company has been cloaked in a
certain air of mystic. Under each successive Management the
starting position was serious losses and this was confidently
predicted to change to profit after each rationalisation plan
was implemented. Even at times when the volume of business
was well over budget, losses were allegedly incurred and staff
generally felt that Managements credibility was very
questionable.
3. The workers have done everything in their power to
implement the plans of the ever changing Management teams only
to find that all their sacrifices of redundancy, relocation,
re-development were all for nothing. It appears from the
latest predictions from Management that the Company is once
again on the right road and that profits are now being
generated.
4. The Court will be very familiar with all of the arguments
on the 26th round. The Court will also be familiar with the
norms for that round and the fact that most workers would have
received the benefit of same in late 1985. That leaves the
workers in TNT one whole wage round out of step and a full
twelve (12) months overdue on this 26th round.
5. The workers are seeking an increase of 6% for 12 months;
if necessary in two phases commencing January, 1987. That
leaves the claim very much within the norm coupled with that
is the fact that the workers have not had the benefit of the
use of the money over the past year which for all of them is a
serious loss.
COMPANY'S ARGUMENTS:
4. 1. The Company has incurred heavy trading losses over the
past number of years. The Company has attempted to
re-organise and rationalise operations without any degree of
success. In June, 1987 a new general manager was appointed
and a new direct reporting line to British Head Quarters was
established. Following a review of the operation it was
decided that a final attempt would be made to bring the
Company back into profitability.
2. The Company has already incurred significant expenditure
on redundancy and disturbance payments this year.
3. Despite the additional costs, the Company has agreed to
pay incremental increases which in the present circumstances
could justifiably have been withheld on economic grounds.
4. The payment of any retrospection for 1987 and the payment
of an increase that is unjustifiable in cost terms will
seriously undermine this final attempt to bring this Company
to profitability. Irish Management and the Union have already
been advised of the implications of failure.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
and taking into account the position of the Company recommends an
increase of 4% from 1st January, 1988 in respect of the 26th round
claim. The agreement to terminate on 30th September, 1988.
~
Signed on behalf of the Labour Court.
12th January, 1988 Evelyn Owens
M.D./M.F. Deputy Chairman