Labour Court Database __________________________________________________________________________________ File Number: CD8845 Case Number: LCR11762 Section / Act: S67 Parties: LEP INTERNATIONAL LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim by the Union on behalf of 6 workers for an increase under the 27th wage round.
Recommendation:
5. Having considered the submissions made by the parties, the
Court recommends that the offer suggested by the Industrial
Relations Officer be amended to provide an increase of #6.50 for
the foremen and #6 for the driver and checker and the offer so
amended be accepted by the workers concerned.
Division: Mr O'Connell Mr Heffernan Mr Devine
Text of Document__________________________________________________________________
CD8845 RECOMMENDATION NO. LCR11762
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: LEP INTERNATIONAL LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim by the Union on behalf of 6 workers for an increase
under the 27th wage round.
BACKGROUND:
2. The Union wrote to the Company on 16th June, 1987, seeking a
meeting to discuss an increase under the 27th wage round. At a
meeting on the 7th October, 1987, the following claim:
- 8% increase for 12 months from 1st July, 1987,
- an additional #5 per week increase for the 'packer' and the
driver.
The claim was rejected by the Company who argued that given the
severe competition within the industry it could only concede a
modest increase. Agreement could not be reached at local level
and on 8th October, 1987, the issue was referred to the
conciliation service of the Labour Court. At a conciliation
conference held on 26th November, 1987, the Union modified its
claim to one of 5% for 12 months from 1st July, 1987. The Company
proposed an offer of 3% for 14 months, however, this was rejected
by the Union. During the conciliation conference the parties
agreed to consider the following settlement formula proposed by
the Industrial Relations Officer:-
- #6 increase for foremen,
- #5.75 increase for the driver and packer,
- 4% increase on the bonus,
- to apply from 1st July, 1987, for 12 months.
These proposals were rejected by the Union following a general
meeting of the workers. On 15th January, 1988, the dispute was
referred to the Labour Court for investigation and recommendation.
A Court hearing took place on 4th March, 1988.
UNION'S ARGUMENTS:
3. 1. Under previous wage rounds the workers have accepted
increases well below the average for the private sector. The
workers also accepted pay pauses under the 24th and 25th wage
rounds.
2. The workers' living standards have been eroded over the
last number of year as a result of inflation, taxation,
P.R.S.I. and health contributions.
3. The most recent analysis of settlements negotiated under
the 27th wage round show that the average annualised increase
is nearly 5%. In respect of the transport and warehousing
industry settlements are in the region of 4.5% over 12 months.
It is unreasonable to expect these companies, who are
experiencing similar competition, to have to pay reasonable
increases and for the Company not to concede a similar
increase.
COMPANY'S ARGUMENTS:
4. 1. The rates of pay to the workers concerned are favourable,
particularly when bonus and overtime earnings are taken into
account. Average overtime at the depot are in the region of
#4,800 per annum.
2. Despite the downward trend in the number of containers
serviced and where prices are decreasing the Company has
applied very reasonable pay increases in recent years. These
increases have been in excess of the consumer price index.
3. Other categories of worker within the Company received a
pay increase of 4% for 12 months. The proposals emanating
from the conciliation conference represented a similar
increase for the higher earners, but involved more favourable
treatment for the 2 lower paid workers i.e. the driver and
packer. The Company believes that it is not sustainable that
these workers merit increases over and above that accepted by
the remainder of the workers.
4. Were the Company to apply increases greater than those
offered, cost reducing measures would be required. Bearing in
mind that increases cannot be passed on to customers it is
inevitable that the question of employment numbers would have
to be addressed.
RECOMMENDATION:
5. Having considered the submissions made by the parties, the
Court recommends that the offer suggested by the Industrial
Relations Officer be amended to provide an increase of #6.50 for
the foremen and #6 for the driver and checker and the offer so
amended be accepted by the workers concerned.
~
Signed on behalf of the Labour Court
John O'Connell
________________________
23rd March, 1988 Deputy Chairman.
B.O'N./J.C.