Labour Court Database __________________________________________________________________________________ File Number: CD87863 Case Number: LCR11763 Section / Act: S67 Parties: SHERWOOD MEDICAL (ATHY) LIMITED - and - FEDERATED WORKERS' UNION OF IRELAND |
Claim, on behalf of 37 workers, for a 27th wage round agreement.
Recommendation:
6. The Court, having considered the submissions in this case,
recommends an increase of 4% in full settlement of the 27th pay
round claims to cover the period from 1st September, 1987 to 31st
August, 1988. The terms of the National Plan to be applied with
effect from 1st September, 1988.
Division: Ms Owens Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD87863 RECOMMENDATION NO. LCR11763
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: SHERWOOD MEDICAL (ATHY) LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Claim, on behalf of 37 workers, for a 27th wage round
agreement.
BACKGROUND:
2. The Company which is part of Sherwood Medical Industries has
been established in Athy, Co. Kildare since 1973 and currently
employs a total of 69 workers. The Company is engaged in the
production of injection/blow moulded plastic parts for supply to
medical markets through its sister companies. This claim concerns
37 workers employed in the general operative and craft sector of
the Company. The 26th wage round expired in the Company on 31st
August, 1987. The present rates of pay of the workers concerned
range from #136 to #213. The Union claimed a 10% wage increase in
basic pay for 12 months, a productivity bonus, an extra days
leave, payment of VHI Plan P and a doubling of service pay. The
Company rejected the claim and offered a 3% wage increase over
twelve months. This was not acceptable to the Union which advised
the Company that the minimum settlement acceptable would be 5% for
12 months plus a doubling of the service pay.
3. No agreement was reached through local negotiations and on
10th September, 1987 the matter was referred to the conciliation
service of the Labour Court. Conciliation conferences were held
on 12th November, 1987, which was the earliest date suitable to
all parties, and 2nd December, 1987. However no agreement was
reached and on 17th January, 1988, following a request on that
date from the Union, the case was referred to the Court for
investigation and recommendation. A Labour Court hearing was held
on 11th March, 1988.
UNION'S ARGUMENTS:
4. 1. The workers rejected the settlement terms and considered
them inadequate.
2. The minimum acceptable settlement terms would be 5% for 12
months from 1/9/87 plus a doubling of the present service pay
as follows:-
from .50p for 5 years to #1 for 5 years
from #1.00 for 10 years to #2 for 10 years
from #1.50 for 15 years to #3 for 15 years
from #2.00 for 20 years to #4 for 20 years
3. The workers want an increase in their basic rate of pay
rather than a lump sum to compensate for the period since 1st
September, 1987.
COMPANY'S ARGUMENTS:
5. 1. The Company's corporate policy prevents it from entering
into negotiations on the introduction of a bonus scheme.
There is no justification for the introduction of such a
scheme given the rates of pay and other benefits afforded by
the Company.
2. The existing service pay arrangements are fair and
reasonable and any extension is unwarranted.
3. The annual leave entitlement in the Company of 20 days is
well in keeping with that afforded in Irish industry
generally. Therefore, there is no justification for an
increase in existing entitlements.
4. The Company cannot agree to payment of Plan P of the VHI
scheme and must view the Union claim in its totality in
relation to increased labour costs.
5. The Company's rates of pay compare favourable with those
rates of pay in similar companies. Therefore, there is no
justification for any increase in excess of that already
recommended by both sides.
6. The next six months are particularly important for the
Company's operation. During this period the Company must find
solutions to its problems (details supplied to the Court)
which will give it a new direction for the future.
7. It is essential for survival that the Company entices new
labour intensive products for manufacture to what must become
a more competitive production unit in Athy. Naturally a
stringent control of labour costs is a key element in such an
approach.
8. The Company is not in a position to put itself at a
competitive disadvantage vis a vis increased wage costs, other
than through the proposals already agreed to when there is
general agreement throughout industry on all sides on the
implementation of the Nation Plan.
9. The Company was surprised and disappointed to learn of the
worker rejection of the agreed proposals. In its present
circumstances and in the difficult times ahead the Company has
done all it can to reach a fair and reasonable settlement of
the issue.
RECOMMENDATION:
6. The Court, having considered the submissions in this case,
recommends an increase of 4% in full settlement of the 27th pay
round claims to cover the period from 1st September, 1987 to 31st
August, 1988. The terms of the National Plan to be applied with
effect from 1st September, 1988.
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Signed on behalf of the Labour Court.
Evelyn Owens
___28th___March,___1988. ___________________
T. O'M. / M. F. Deputy Chairman