Labour Court Database __________________________________________________________________________________ File Number: CD87879 Case Number: LCR11643 Section / Act: S67 Parties: TWIL LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim, on behalf of seven workers for an increase in pay under the 27th wage round.
Recommendation:
5. Having regard to the current state of this Company the Court
recommends that wages be increased by 2.5 per cent with effect
from 1st December, 1987. The agreement should expire on 30th
June, 1988.
Division: CHAIRMAN Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD87879 RECOMMENDATION NO LCR11643
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: TWIL LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim, on behalf of seven workers for an increase in pay under
the 27th wage round.
BACKGROUND:
2. The workers concerned are employed as forklift drivers and
storemen at Sir John Rogersons Quay, Dublin, where the Company has
a warehousing operation. The existing weekly rates of pay are
#148.19 for forklift drivers and #142.53 for storemen. The 26th
wage round expired on 30th June, 1987. At a meeting on 30th
September, 1987 the Union served a claim for a 10% increase in pay
for 12 months from 1st May, 1987. The Company was not prepared to
make any offer on pay. The matter was referred to the
conciliation service of the Labour Court on 27th October, 1987 and
a conciliation conference was held on 19th November, 1987. The
possibility of applying the terms of the Programme for National
Recovery was discussed but, as no agreement was reached, the
matter was referred to a full hearing of the Labour Court. The
hearing took place on 4th December, 1987.
UNION'S ARGUMENTS:
3. 1. The Union is seeking a meaningful offer under the 27th
round. Under the 26th round agreement there were substantial
productivity improvements which have been of great benefit to
the Company. The increase under that round was between 4.6%
and 4.8% over 13 months. This compares with an average
annualised increase of almost 6% in the private sector under
the 26th round.
2. The workforce has been reduced by two over the past
year. The changes agreed under the 26th round enabled the
operation to continue without the need for replacements.
3. Living standards have been steadily eroded by inflation,
taxation and PRSI contributions.
4. Under the 27th wage round the average annualised
increase is almost 5%. Settlements in the
warehousing/transport sector are averaging 4% to 5%
annualised. Such companies are experiencing the same
competition as this Company.
COMPANY'S ARGUMENTS:
4. 1. The Company's warehousing operation is in a difficult
trading position at present. Significant trading losses have
been incurred over a period of years which are a direct result
of recession and the loss of major contracts.
2. The Company cannot consider any increase in excess of
the terms of the Programme for National Recovery, such an
increase to apply in early 1988. The Company considers that
this level of increase constitutes a reasonable offer. If it
were exceeded, this would seriously undermine efforts to
generate new business. Since the Company cannot pass on price
increases to customers the loss making situation in the
warehouse would deteriorate. In the Company's view, such a
development would not enhance the security of the remaining
jobs in the warehouse.
3. Despite difficulties in recent years, the Company has
applied favourable increases, often in excess of average
increases applying. Under the 23rd round, a cumulative
increase of 12.5% was applied. There was an 11.3% increase
under the 24th round and an 8% increase under the 25th round.
4. Other staff throughout the Company have not received any
pay increase in 1986 or 1987.
RECOMMENDATION:
5. Having regard to the current state of this Company the Court
recommends that wages be increased by 2.5 per cent with effect
from 1st December, 1987. The agreement should expire on 30th
June, 1988.
~
Signed on behalf of the Labour Court
John M. Horgan
-----------------
12th January, 1988
A.K./U.S. Chairman