Labour Court Database __________________________________________________________________________________ File Number: CD88560 Case Number: LCR12111 Section / Act: S67 Parties: IRISH BISCUITS LIMITED - and - MARINE PORT AND GENERAL WORKERS' UNION |
Claim by the Union, on behalf of 36 sales representatives and merchandisers, for an increase in salaries and allowances.
Recommendation:
5. The Court, having considered the submissions from both
parties, recommends that the terms of the Programme for National
Recovery be applied to the claimants from 1st December, 1987 and
that on the conclusion of that agreement the following be
implemented.
(a) a reduction of 2 points on the salary scale i.e. from 15
to 13 points,
(b) payment of 50% of telephone rental, and
(c) payment of garage/storage allowance of £4.50 per week.
Division: Ms Owens Mr Collins Mr Walsh
Text of Document__________________________________________________________________
CD88560 RECOMMENDATION NO. LCR12111
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: IRISH BISCUITS LIMITED
and
MARINE PORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim by the Union, on behalf of 36 sales representatives and
merchandisers, for an increase in salaries and allowances.
BACKGROUND:
2. The Company's 27th wage round expired on 30th November, 1987.
The Union lodged a claim, for an increase in and restructuring of
the existing salary scales as follows:
- the maximum point on scale to be increased by the
equivalent of 2 increments (increment = £400),
- scale to be reduced from 14 to 12 years.
The Union also claimed the introduction of a garage/storage
allowance of £6 per week and the payment, in full, of telephone
rental. The Union maintained that the workers' salaries were out
of line with other similar employments and that the other elements
of the claim were well established and applied to most sales
representatives. The Company rejected the claim, arguing that its
salaries and conditions compared favourably with other companies.
Apart from this, almost all of its employees had accepted the
terms of the Programme for National Recovery (P.N.R.). If the
Union's members were to be treated differently then the remainder
of the workforce would want additional concessions also. As the
matter could not be settled at local level, it was referred to the
conciliation service of the Labour Court on 25th April, 1988. No
agreement was reached at a conciliation service held on 31st May,
1988, and on 18th July, 1988, the dispute was referred to the
Labour Court for investigation and recommendation. The Court
investigated the matter on 20th October, 1988.
UNION'S ARGUMENTS:
3. 1. The basic salaries of the workers concerned do not compare
favourably with other similar workers in the food, drink and
tobacco industry (details supplied to the Court). The average
increase in salaries in the industry during the period
1981-1988 was 93%. The increase in the Company was 25% below
the average. Added to this is the fact that in the Company
maximum salary is only achieved after 14 years compared with
an industry average of 12 years.
2. The duties and responsibilities between the sales
representatives in the Company and other companies are no less
demanding. In the competitive world in which they operate,
which can be very demanding at times, the workers have
performed consistently well over the years, increasing sales
and contributing to the Company's success.
3. It is now generally accepted that a garage/storage
allowance is a recognised condition of employment for this
class of worker. The origins of this allowance arose from the
fact that in most cases sales representatives use their
drive-ways to accommodate the Company's car and the garage or
some part of the home is used as a storage point for the
Company's products. According to a Federated Union of
Employers' (F.U.E.) survey published in the media in May,
1987, the average garage allowance was, at that time, £4.80
per week.
4. Communication plays a vital part in a sales
representatives day to day work, which is usually done in the
field. Contact with the Company is not always possible,
therefore the telephone in the home is of benefit to the
Company in keeping contact with the sales representative. An
F.U.E. survey reported that "45% of companies paid either
partially or in full for the installation of a telephone in
the salesman's home. Most companies also pay rental costs and
pay for business telephone calls made."
COMPANY'S ARGUMENTS:
4. 1. The Company has already agreed to apply the terms of the
P.N.R. to 888 of its 920 employees represented by nine other
unions in the Company.
2. Pay arrangements have always been agreed on a identical
basis for all employee categories within the Company. The
Unions have always insisted upon this arrangement and also
police its application. The range of adjustments and
improvements sought by the sales group would be seen clearly
as benefits additional to the general pay terms. Any
perceived difference in arrangements has been pursued and as
the record shows, ultimately ended up back with the Labour
Court.
4. 3. The benefit package available to merchandisers and sales
representatives in the Company compares well with that
available in competitor companies.
RECOMMENDATION:
5. The Court, having considered the submissions from both
parties, recommends that the terms of the Programme for National
Recovery be applied to the claimants from 1st December, 1987 and
that on the conclusion of that agreement the following be
implemented.
(a) a reduction of 2 points on the salary scale i.e. from 15
to 13 points,
(b) payment of 50% of telephone rental, and
(c) payment of garage/storage allowance of £4.50 per week.
~
Signed on behalf of the Labour Court,
Evelyn Owens
___10th___November,__1988 ___________________
B. O'N. / J. C. Deputy Chairman