Labour Court Database __________________________________________________________________________________ File Number: CD88220 Case Number: LCR11903 Section / Act: S67 Parties: KRAUS AND NAIMER LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS UNION |
Claim on behalf of 46 workers for a wage increase in respect of the 27th wage round.
Recommendation:
5. The Court, having considered the submissions made by the
parties and having particular regard to the trading difficulties
being experienced by the Company recommends that the Employers
proposal for an interim agreement be accepted.
Division: Mr O'Connell Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD88220 RECOMMENDATION NO. LCR11903
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: KRAUS AND NAIMER LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claim on behalf of 46 workers for a wage increase in respect
of the 27th wage round.
BACKGROUND:
2. The Company was established in 1973 and manufactures
electrical switchgear. The 26th wage round for the workers
provided for an 18 months phased agreement from 1st February, 1986
to 31st July, 1987 as follows:-
- 3% from 1st February, 1986.
- 3% from 1st July, 1986.
- 3% from 1st January, 1987.
- 1 extra days annual leave after 5 years service.
3. On 14th October, 1987 the Union served a claim on the Company
in respect of the 27th wage round for: a substantial wage
increase; extra annual leave; and improvements in VHI. A local
level meeting took place in November, 1987 at which the Unions
(ITGWU and NEETU) outlined their claim as being for a 4% increase
for twelve months in line with increases in companies in the
Shannon Industrial Estate. In the course of discussions NEETU
agreed to an interim increase of 1% from 1st August, 1987 to 31st
January, 1988 to conclude the 26th and 27th wage rounds, this
proposal was rejected by the ITGWU. A further local level meeting
took place in December, 1987 between this Union and the Company at
which agreement could not be reached and on 12th January, 1988 the
matter was referred to the conciliation service of the Labour
Court. A conciliation conference was held on 1st March, 1988 at
which no progress was made and on 21st March, 1988 the matter was
referred to the Labour Court for investigation and recommendation.
The Court investigated the dispute on 12th April, 1988.
UNION'S ARGUMENTS:
4. 1. The norm on the Shannon Industrial Estate for wage
increases was 4% for twelve months, (details supplied to
the Court). The workers concerned should therefore
receive such an increase.
2. It would appear that the Company has manoeuvred us into
the present situation due to the fact that the Programme
for National Recovery has been accepted in its entirety
throughout the country.
COMPANY'S ARGUMENTS:
5. 1. The Company exports approximately 95% of its product,
however developments have resulted in surplus capacity
worldwide. At the end of 1986 and during 1987 the Company
experienced very difficult trading conditions and for 1987
recorded a loss on its trading (details supplied to the
Court). The Company performs a full manufacturing cycle
and total labour cost is approximately 40% - 45% of
turnover and any wage increases will have significant cost
implications. The Company cannot afford to further erode
its competitive position in the market.
2. Over the years the Company has applied a competitive wage
and benefits policy including good basic rates of pay, VHI
subsidy, bonus scheme, holidays, pension and long term
disability scheme, and subsidised transport (details
supplied to the Court). In the circumstances the
Company's offer is a generous one.
RECOMMENDATION:
5. The Court, having considered the submissions made by the
parties and having particular regard to the trading difficulties
being experienced by the Company recommends that the Employers
proposal for an interim agreement be accepted.
~
Signed on behalf of the Labour Court.
John O'Connell
___16th___June,____1988. ___________________
U. M. / M. F. Deputy Chairman