Labour Court Database __________________________________________________________________________________ File Number: CD88403 Case Number: LCR11950 Section / Act: S67 Parties: ALBATROS FERTILIZERS LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim on behalf of 9 general operatives for an increase in pay under the 27th wage round.
Recommendation:
10. Having considered the submissions made by the parties, the
Court recommends a 27th round wage increase of 3% from 1st May,
1987, to be followed by the terms of the National Plan for three
years commencing on 1st July, 1988.
Division: Mr Fitzgerald Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD88403 RECOMMENDATION NO. LCR11950
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: ALBATROS FERTILIZERS LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim on behalf of 9 general operatives for an increase in pay
under the 27th wage round.
BACKGROUND:
2. The Company was formerly known as D.S.M. Albatros. It was
taken over by McDonaghs of Galway in September, 1987.
3. The 26th wage round for the workers concerned expired on 30th
April, 1987. The Union lodged a claim for an increase of 10% with
effect from 1st May, 1987, agreement to expire on 31st March,
1988. The Company offered an increase of 1%. As no progress
could be made the claim was the subject of a Conciliation
Conference with agreement for a referral to the Labour Court for
investigation and recommendation.
4. Shortly after that Conciliation Conference negotiations on a
rationalisation programme with the new owners commenced which
resulted in a number of redundancies and revised pay and
conditions of employment. On the pay claim, the Company agreed
that the claim for an increase entered into with the previous
owners would proceed to a full Labour Court hearing and that the
Company would pay retrospective amounts which the Court might
recommend, if any, but that these increases would not be paid to
those workers who were made redundant.
5. During discussions the Company outlined its position as
follows -
- that a pay pause should apply until 1st July, 1988, to
be followed by the implementation of the terms of the
National Agreement for a period of 3 years.
- that the company would be prepared to 'buy out' the
claim for a '27th Round' increase with a once-off lump
sum, and implement the National Agreement from 1st July,
1988.
6. The Union rejected the Company's offer as it was not agreeable
to a pay pause or a "buy out" of the 27th wage round and it
considered that the terms of the National Plan should not be
linked to discussions on the 27th wage round claim.
7. The Union sought a full Court hearing but at the request of
the Company agreed to attend a Conciliation Conference. The
Conciliation Conference was held on 19th May, 1988. As no
agreement was possible both parties agreed to a referral to the
Labour Court for investigation and recommendation. A Court
hearing was held in Waterford on 22nd June, 1988.
UNION'S ARGUMENTS:
8. 1. The Union is satisfied that its claim for an increase of
10% is necessary to make up for the losses suffered by the
workers concerned over the previous wage rounds where the
levels of increase were less than the norm, and to compensate
for the increase in productivity which had occurred over the
same period.
2. As a result of the rationalisation programme brought in
by the Company the workers have suffered a loss of £100 per
week per man.
3. Account should also be taken of the fact that upon
termination of the 27th wage round agreement the provisions
of the Programme for National Recovery will come into effect
which through the no cost increasing claims clause will
prevent these workers from improving their situation for the
following three years.
COMPANY'S ARGUMENTS:
9. 1. Prior to the take over the Company incurred heavy losses.
Since the takeover substantial costs were incurred to ensure
that the Company remained competitive and to secure and
consolidate the position of the new Company in the industry.
2. The basic rate of pay compares very favourably with rates
applying in the industry. Also there are very substantial
earnings available through a combination of basic and
overtime in the low season and basic, overtime and shift
premium in the high season (details supplied to the Court).
RECOMMENDATION:
10. Having considered the submissions made by the parties, the
Court recommends a 27th round wage increase of 3% from 1st May,
1987, to be followed by the terms of the National Plan for three
years commencing on 1st July, 1988.
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Signed on behalf of the Labour Court
14th July, 1988 Nicholas Fitzgerald
M.D./P.W. Deputy Chairman