Labour Court Database __________________________________________________________________________________ File Number: CD88404 Case Number: LCR11955 Section / Act: S67 Parties: DAWN MEATS (CARROLL'S CROSS) - and - IRISH TRANSPORT AND GENERAL WORKER'S UNION |
Claim for an increase in pay and improvement in conditions of employment under the 27th wage round.
Recommendation:
8. The Court has considered the submissions made by the parties
and recommends a 27th round wage agreement covering a twelve month
period from 1st January, 1987, providing for an increase of 5% on
basic pay together with a 2½% increase in piece rates (where
applicable). This Agreement to be followed by the terms of the
National Plan.
The Court has noted that the Company is presently costing a
pension scheme.
The Court does not recommend concession of the claims for a
sickness benefit scheme or additional annual leave.
Division: Mr Fitzgerald Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD88404 RECOMMENDATION NO. LCR11955
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: DAWN MEATS (CARROLL'S CROSS)
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKER'S UNION
SUBJECT:
1. Claim for an increase in pay and improvement in conditions of
employment under the 27th wage round.
BACKGROUND:
2. The Company which is engaged in the boning and packing of
fresh and frozen meat products employs between 30 and 120 workers
depending on the season. There are three categories of workers,
boners, packers and general operatives. Boners are paid on a
piece rate and a fall back system. In addition there are 22
workers employed in boning pigs. This work is carrid out in a
location adjacant to but seperate from the main boning plant. The
workers concerned were employed on short term temporary contracts
which are due to expire in August, 1988.
3. The 26th wage round expired at the end of December, 1986. The
Union lodged the following claim under the 27th wage round -
(a) An increase of 10% on existing basic and piece rates.
(b) One additional days annual leave.
(c) Introduction of a sickness benefit scheme.
(d) Introduction of a pension scheme.
4. In response to the claim the Company offered an increase of 5%
on basic rates only for twelve months from 1st January, 1987,
followed by the terms of the National Agreement from 1st January,
1988. The Company agreed to look at the costs of a pension scheme
and rejected the other elements of the claim.
5. The matter was referred to the Conciliation Service of the
Labour Court by the Union on 26th February, 1988. On 8th April
the Company agreed to go to conciliation and a Conciliation
Conference was held on 12th May, 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 in
Waterford on 22nd June, 1988.
UNION'S ARGUMENTS:
6. 1. The basic rate of pay compares very poorly with the
general levels of pay in the area or with rates which apply
in the meat industry generally (details supplied to the
Court). Concession of the claim for 10% would still leave
the rates well below the norms. The basic rate only applies
to 35 workers out of a total of 130. The remainder are on
piece rates.
2. While the increase of 10% claimed on the basic was also
sought in respect of the piece rates the Union is prepared to
accept an increase of 5% in line with the norm for the 27th
wage round. This is consistent with the Union's policy of
trying to improve the position of the lower paid.
3. The productivity levels required to achieve high earnings
would, under normal incentive bonus criteria, generate higher
levels of pay than apply under the piece work system. The
workers concerned are only paid for work done - there is no
fall back system or provision for waiting time. They are
also not in receipt of any other payments or benefits of a
cost nature.
4. The claim for an extra days annual leave is an attempt to
bring the annual leave entitlement into line with the rest of
the European countries.
5. The Union is seeking the introduction of a sickness
benefit scheme on the basis that it has been accepted over
the past ten years through the inclusion in National
Agreements and National Understandings of specific clauses,
that such schemes are not fringe benefits but essential
conditions of employment.
COMPANY'S ARGUMENTS:
7. 1. The Company's direct competitors have moved to a system
of contracting out boning. This places the Company at a
disadvantage as its competitors' operational costs are much
lower.
2. The industry is such that some short-time working
applies. However the workers have opportunities to achieve
substantial earnings (details supplied to the Court).
3. The volume of product through the Company has reduced.
The high level of labour costs has not permitted the Company
to evolve into processing of the higher quality more
sophisticated products now demanded by the market.
4. The Company has offered in good faith to pay a 27th Round
increase and to implement the National Agreement on basic
rates.
5. Any further increases on piece rates will militate
against the future of Dawn Meats (Carroll's Cross) and will
bring about further reductions in throughput.
RECOMMENDATION:
8. The Court has considered the submissions made by the parties
and recommends a 27th round wage agreement covering a twelve month
period from 1st January, 1987, providing for an increase of 5% on
basic pay together with a 2½% increase in piece rates (where
applicable). This Agreement to be followed by the terms of the
National Plan.
The Court has noted that the Company is presently costing a
pension scheme.
The Court does not recommend concession of the claims for a
sickness benefit scheme or additional annual leave.
~
Signed on behalf of the Labour Court
18th July, 1988 Nicholas Fitzgerald
M.D./P.W. Deputy Chairman