Labour Court Database __________________________________________________________________________________ File Number: CD88421 Case Number: LCR11956 Section / Act: S67 Parties: THOMAS COOK LIMITED - and - TRANSPORT SALARIED STAFFS' ASSOCIATION |
Claim on behalf of 22 workers for an increase in pay of 5% under the 27th wage round.
Recommendation:
8. The Court, having considered the submissions made by the
parties, recommends a 27th round wage increase of 3½% effective
from 1st November, 1987, for a period of twelve months, to be
followed by the provisions of the National Plan.
Division: Mr Fitzgerald Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD88421 RECOMMENDATION NO. LCR11956
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: THOMAS COOK LIMITED
(Represented by the Federated Union of Employers)
and
TRANSPORT SALARIED STAFFS' ASSOCIATION
SUBJECT:
1. Claim on behalf of 22 workers for an increase in pay of 5%
under the 27th wage round.
BACKGROUND:
2. The Company is primarily engaged in the selling of chartered
holidays, seats on scheduled flights and exchanging foreign
currency.
3. The 26th wage round expired on 31st October, 1987. In
January, 1988, the Union lodged a claim for an increase in pay of
5% with effect from 1st November, 1987, agreement to last for 12
months.
4. In response the Company offered an increase of 2½% from 1st
November, 1987, for 12 months to be followed by the terms of the
National Plan for 2 years. The Company also pointed out to the
Union that the workers would receive a once off payment at the end
of May, 1988, equivalent to an additional 4% increase on an annual
salary as at December, 1987, as part of the Profit Share Midland
Bank Scheme (the 4% has since been paid).
5. This offer was rejected by the Union and the matter was
referred to the Conciliation Service of the Labour Court on 30th
March, 1988. A Conciliation Conference was held on 14th April,
1988. As no agreement was reached both parties agreed to a
referral to the Labour Court for investigation and recommendation.
A Court hearing was held on 29th June, 1988.
UNION'S ARGUMENTS:
6. 1. The Company's business performance during 1987 has been
satisfactory and the Irish operation recorded a profit for
that period.
2. The increase of 5% sought by the Union has been awarded
to staff in the U.K. and as the Dublin organisation would not
be regarded as bottom of the "Thomas Cook league" there is no
justifiable reason why the Company cannot grant a similar
increase to the Irish workers.
3. The Union's claim is a modest one and represents the norm
for 27th wage round settlements for various multi-national
and conglomerate companies operating in this country (details
supplied to the Court).
COMPANY'S ARGUMENTS:
7. 1. The combination of the Company's offer of 2.5% from
November 1st, 1987, and the Midland Profit Scheme of 4% will
provide the employees with increases of 6.5% which is in
excess of the present rate of inflation of 1.8%. This offer
could only be considered fair and reasonable in the light of
both the Company and the Nation's financial circumstances.
2. The Company's financial position has deteriorated over
the past year. The Dublin Branch is under instruction to
decrease costs.
4. A combination of declining disposable income, reduced
consumer spending and increased competition has had an
adverse effect on the Company's trading position.
RECOMMENDATION:
8. The Court, having considered the submissions made by the
parties, recommends a 27th round wage increase of 3½% effective
from 1st November, 1987, for a period of twelve months, to be
followed by the provisions of the National Plan.
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Signed on behalf of the Labour Court
18th July, 1988 Nicholas Fitzgerald
M.D./P.W. Deputy Chairman