Labour Court Database __________________________________________________________________________________ File Number: CD87898 Case Number: LCR11760 Section / Act: S67 Parties: MICHAEL BYRNE & SONS - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim, under the 26th wage round, for a wage increase, a review of van sales commission, and service pay and improved holiday bonus.
Recommendation:
8. The Court having considered the submissions from both parties
recommends as follows:-
(1) Pay. - Lead in cash payment of #60.
3% from 1st May, 1987 and a further
3% from 1st December, 1987.
Agreement to terminate 30/6/1988.
The amounts due under the above recommendation to be paid as
follows:-
Lump sum of #60 immediately. Balance of arrears in two
equal instalments in May and June, 1988.
(2) Commission-Van Salesperson
- Local negotiation between Union and
Management on the question of a new scheme
should continue.
(3) Holiday Pay - No alteration at this time.
(4) Service Pay - No change recommended.
Division: Ms Owens Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD87898 RECOMMENDATION NO. LCR11760
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: MICHAEL BYRNE & SONS
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim, under the 26th wage round, for a wage increase, a
review of van sales commission, and service pay and improved
holiday bonus.
BACKGROUND:
2. The 25th wage round expired on 31st December, 1986.
In January, 1987 the Union sought negotiations with the Company as
outlined in Labour Court Recommendation No. 10617 which provided
that wage rates and all the other items contained in that claim
should be further considered by the parties in January, 1987. The
claim concerns approximately 130 production sales workers. The
weekly rates of pay of the workers concerned range from #125.50 to
#135.21 and an average production bonus of between #57 and #62 per
week is paid.
3. A van sales commission was implemented in 1976 as follows:-
On reaching set targets the following payments were made,
Bacon/Pork .52p per lb., Cooked Hams 20p per ham, Sausages/Cooked
Meats .50p per lb.
Service pay is paid at the rate of #1 per week for 5 years'
service, #2 per week for 10 years' service, #3 per week for 15
years' service, #3.50 per week for 20 years' service, #4 per week
for 25 years' service and #5 per week for 30 years.
The holiday bonus scheme yields the average of the previous 6
weeks pay.
4. Discussions took place on 24th February, 1987 at which the
Union lodged a 26th wage round claim for
an 9% wage increase over 12 months,
an improvement in van sales commission and indexlinking to be
included in the scheme,
holiday bonus to be based on average of actual weeks worked
and
improvement in service pay.
Further discussions on the pay round did not take place until 29th
June, 1987. At that stage the Union modified its pay claim to a
3% increase from 1st January, 1987 a further 3% increase from 1st
January, 1988 as part of an eighteen months agreement. The
Company responded by making a final offer for a pay agreement
covering eighteen months from 1st January, 1987 to 1st July, 1988.
Under the proposal the Company would adjust rates of pay as
follows:-
(i) On Week of acceptance, full-time employees will be paid a
cash payment of #40.00.
(ii) Phase 1: With effect from 1st May, 1987, the existing
basic rates will be increased by 3%.
(iii) Phase 2: With effect from 1st December, 1987 there will
be a final adjustment of 3% on basic rates. These revised
rates will then continue unchanged until the termination
date of the Agreement.
The Union rejected this offer.
5. On 13th April, 1987 the issue of the non-implementation of
Labour Court Recommendation No. 10617 had been referred to the
conciliation service of the Labour Court. On 23rd September, 1987
a conciliation conference was held concerning the 26th wage round.
No agreement was reached and on 24th November, 1987 the case was
referred to the Court for investigation and recommendation. A
Labour Court hearing was held on 2nd March, 1988.
UNION'S ARGUMENTS:
6. 1. The average 26th round settlement was 6% annualised and
the majority were for a period of 12 months. For over 90% of
settlements, there were no pay pauses and the majority were
single phase increases.
2. The workers in the Company have accepted major
rationalisation, resulting in drastic reductions in pay.
3. It is clear that the Company's offer is out of line with
that of the Trade and radically out of line with that of
industry in general.
4. It is totally unacceptable that a pay pause be part of any
wage offer, taking into account Labour Court Recommendation
No. 10617 and the extraordinary delays in getting a response
to the Union's claim.
5. An increase to the van sales commission was sought and
included in Labour Court Recommendation No. 10617. The
Company has not sought agreement with the Union concerning new
payments. No provision is made for index-linking and with
increases in the cost of living the yield will again lose
value in real terms.
6. The Union seeks an improvement in the present rates for
service pay which have not been increased for some years.
7. As workers depend almost entirely on their pay at holiday
time the fairest and most equitable system of calculating
holiday bonus would be the average of the previous six working
weeks. This claim covers all the Union members including the
canteen workers.
8. Under the present holiday bonus scheme if a worker is
absent his average is reduced accordingly.
COMPANY'S ARGUMENTS:
7. 1. The Court is already aware of the fact that serious
difficulties have been widespread throughout the bacon curing
industry over the last three years in particular. This
Company is not insulated from these problems which have
resulted in the closure of some companies and efforts at major
rationalisation in many others.
7. 2. Because of the loss of exports and domestic market
developments, the throughput of pigs in the Company has
reduced by 20% in 1986 and by a further 20% in 1987 with no
reversal of this trend. From this, there has been a
consequential loss of revenue at a time when the Company is
experiencing trading losses.
3. This situation has been worsened by a significant retail
business failure in 1987 which affected credit income and an
unofficial dispute which resulted in market loss from which
the Company is still trying to recover ground.
4. The Company's financial situation continues to be serious
and this requires careful cost management. Because of the
market loss in 1987, the Company would now only be in a
position to implement retrospective payments on a phasing
arrangement into the future. In this regard, nothing should
be done to compound existing problems which the Company is
endeavouring to cope with. The achievement of viability is
the priority, otherwise future risks will only increase.
5. It is clear, from examining the comparative position
between the Company (with its proposal implemented) and that
of competitor companies under the 26th pay round that the
Company's proposal is a very favourable one.
RECOMMENDATION:
8. The Court having considered the submissions from both parties
recommends as follows:-
(1) Pay. - Lead in cash payment of #60.
3% from 1st May, 1987 and a further
3% from 1st December, 1987.
Agreement to terminate 30/6/1988.
The amounts due under the above recommendation to be paid as
follows:-
Lump sum of #60 immediately. Balance of arrears in two
equal instalments in May and June, 1988.
(2) Commission-Van Salesperson
- Local negotiation between Union and
Management on the question of a new scheme
should continue.
(3) Holiday Pay - No alteration at this time.
(4) Service Pay - No change recommended.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___________________
25th March, 1988
T. O'M. / M. F. Deputy Chairman.