Labour Court Database __________________________________________________________________________________ File Number: CD88193 Case Number: LCR11957 Section / Act: S67 Parties: MORRIS BUILDERS PROVIDERS - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION |
Claim on behalf of four general operatives for an improvement in terms and conditions of employment.
Recommendation:
8. The Court, having considered the submissions made by the
parties, recommends that the Union accepts the Company's proposals
of 18th August, 1987, in relation to annual holidays and death in
service cover.
The Court is of the view that the basic wage rates of the
claimants are out of line with those of similar categories of
workers in the area and has noted that the Union has been pursuing
a claim on this question since early 1987. The Court recommends
that this imbalance should be corrected over a three year period
and regard being had to the financial position of the Company this
should be at the rate of one third at end of 1988, a further one
third at end of 1989 and the balance at end of 1990.
Division: Mr Fitzgerald Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD88193 RECOMMENDATION NO. LCR11957
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: MORRIS BUILDERS PROVIDERS
(Represented by the Federated Union of Employers)
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim on behalf of four general operatives for an improvement
in terms and conditions of employment.
BACKGROUND:
2. The Company commenced operations in Waterford in 1983, and
currently employs 23 workers.
3. In March, 1987, the company granted the workers concerned in
this claim an increase in basic pay effective from 1st April,
1987, which resulted in one worker's basic rate being increased
from £96 to £134 per week and the other three workers' rate being
increased from £106.71 to £134.00 per week.
4. On the 9th March, 1987, the Union lodged the following claim
with the Company -
1. £180.00 per week.
2. Agreement to expire 31/12/88.
3. Twenty one days holidays.
4. Sick pay scheme.
5. The introduction of a death in service scheme and a
pension scheme.
6. Christmas bonus of two weeks wages and a summer bonus of
one weeks.
7. Annual clothing allowance of £120.00 per annum.
5. As no agreement was possible at local level the matter was
referred to the Conciliation Service of the Labour Court on 14th
May, 1987. A Conciliation Conference was held on 2nd July, 1987.
At the Conciliation Conference the Company offered to increase
annual leave entitlement from 18 days to 20 days and to introduce
death in service benefit cover of £8,000 for each worker, and
rejected the other elements of the claim. The Company's offer was
subsequently rejected by the Union and in February, 1988, both
parties agreed to a referral to the Labour Court for investigation
and recommendation. A Court hearing was held in Waterford on the
18th May, 1987 - the earliest date suitable to all parties.
UNION'S ARGUMENTS:
6. 1. The present rate of £134 is amongst the lower of the
lowest paid. Hospital attendants and corporation workers
have up to £30 a week more, and local Waterford industry and
general operative factory rates vary from £170 to £190 per
week. The rate of pay sought by the Union compares
favourably to that paid by another builder's provider in the
town (details supplied to the Court).
2. The Union is aware that the programme for National
Recovery is in place since November, 1987, however it must be
pointed out that the Union originally lodged the claim in
March, 1987.
3. The Company's offer to increase the annual leave by 2
days is acceptable provided the weekly rate sought by the
Union is conceded.
4. On the Death in Service element of the claim the Union
considers a factor of three times the annual basic wage as
appropriate.
5. The other elements of the claim are self explanatory and
are basic requirements in any good employment.
COMPANY'S ARGUMENTS:
7. 1. The Company is operating in a severely depressed sector
of Irish industry where competition for the available
business is intense (a further decline is forecast for 1988).
2. Despite this fact the Company granted significant wage
increases to each of the four individuals and has also
offered additional holidays and the introduction of death in
service benefit.
3. As prices realised in the market place are generally
either static or falling in real terms the Company must
maintain strict control over all operating costs. Total
labour costs represent a significant percentage of total
operating costs.
4. The wage increase granted was significantly ahead of
inflation over the period of the agreement.
RECOMMENDATION:
8. The Court, having considered the submissions made by the
parties, recommends that the Union accepts the Company's proposals
of 18th August, 1987, in relation to annual holidays and death in
service cover.
The Court is of the view that the basic wage rates of the
claimants are out of line with those of similar categories of
workers in the area and has noted that the Union has been pursuing
a claim on this question since early 1987. The Court recommends
that this imbalance should be corrected over a three year period
and regard being had to the financial position of the Company this
should be at the rate of one third at end of 1988, a further one
third at end of 1989 and the balance at end of 1990.
~
Signed on behalf of the Labour Court
18th July, 1988 Nicholas Fitzgerald
M.D./P.W. Deputy Chairman