Labour Court Database __________________________________________________________________________________ File Number: CD88564 Case Number: LCR12063 Section / Act: S67 Parties: BERGER PAINTS - and - MARINE PORT AND GENERAL WORKERS UNION |
Claim on behalf of 7 clerical employees for an incremental increase and the introduction of an annual merit bonus.
Recommendation:
10. The Court, having considered the submissions made by the
parties recommends that the claimants should accept the terms of
the National Plan effective from 1st January, 1988. The Court
does not recommend concession of the union's claims for additional
increments or bonus payments arising from the acquisition of the
Ault & Wiborg paint business.
Division: Mr Fitzgerald Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD88564 RECOMMENDATION NO. LCR12063
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: BERGER PAINTS
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
MARINE PORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claim on behalf of 7 clerical employees for an incremental
increase and the introduction of an annual merit bonus.
BACKGROUND:
2. In January, 1987, the Company acquired the paint business of
Ault & Wiborg. The Union, on behalf of the clerical workers
lodged a claim for an incremental increase and the application of
the Company bonus scheme to compensate for the extra workload.
3. The Company informed the Union that it envisaged an initial
increase in the workload and it proposed to recruit temporary
staff to deal with it and to work overtime when necessary. In
view of this the Company asked the Union to co-operate with the
Ault and Wiborg business during the oncoming summer and to wait
and see what effects, if any, the extra business would have on the
workloads. The Union agreed to the Company's request. In
December, 1987 the Company gave a once-off £100 gift voucher to
all permanent workers in recognition of the excellent co-operation
received from all concerned, particularly to the acquiring of the
Ault and Wiborg business.
4. The Union wrote to the Company in November, 1987 requesting a
meeting to discuss the claim. A further letter was issued in
January, 1988 and a meeting was held in March, 1988 at which the
claim together with an overall wage agreement was discussed.
5. Following this meeting the Company put forward the following
offer:- The terms of the Programme for National Recovery with
effect from 1st January, 1988 to 31st December, 1990. The Company
rejected the claim in respect of the Ault and Wiborg business on
the basis that it had examined the workload of the individuals
concerned and as a result did not consider an increase to be
appropriate.
6. The Union rejected the Company's proposals and the matter was
referred to the conciliation service of the Labour Court on 31st
March, 1988. A conciliation conference was held on 24th May,
1988. As no agreement was possible both parties agreed, in July,
1988, to a referral to the Labour Court for investigation and
recommendation.
7. Subsequent to the conciliation conference the workers had a
meeting at which it was decided to cease work on Ault and Wiborg
business with effect from 20th June, 1988. It was later agreed to
defer this action pending the outcome of the Labour Court hearing.
A Court hearing was held on 29th August, 1988.
UNION'S ARGUMENTS:
8. 1. IN relation to the element of the claim for an incremental
increase, the Company, prior to the take over of Ault and
Wiberg, informed the Union that it could not make any
decisions regarding permanency or salary increases. However,
the Company has since made staff permanent and also granted
increases.
2. The Company in rejecting the claim, are in fact in breach
of its own policy. At a previous Labour Court hearing
concerning a claim for a revision of salary scales the Company
argued that it had been its policy to reward staff for
improved productivity, extra responsibility or increased
workload (LCR No. 10684 refers).
3. There is full flexibility among the workers and they have
co-operated fully with Management on the Ault and Wiborg
business. Their actual workload has been increased and this
despite the fact that they had already absorbed the workload
of two colleagues who had left since 1986.
4. The clerical workers are the only group within the Company
who do not enjoy a bonus scheme. These workers contribute as
much to the productivity of the Company as do the rest of the
workforce.
COMPANY'S ARGUMENTS:
9. 1. The Company operates in a very depressed market. It is
under intense pressure to compete with U.K. imports as the
U.K. manufacturers can achieve vast economies of scale because
of larger production runs. While the Company generated extra
business when it acquired Ault and Wiborg, this was offset by
other business which it had already lost.
2. The Company examined the individual workload of the
workers and is satisfied that there has been no major changes
in their work which would warrant any increases. In fact the
workers concerned enjoy the best pay and conditions of
employment in the paint industry.
3. The Union's claim for additional payment is simply a claim
for an additional increase in salary over and above that
agreed between the Company and other employees under the
National Plan. A number of the other unions in the Company
served claims for increases over and above the terms of wage
increases. These were rejected by the Company in all cases
and the majority of unions accepted the Company's offer on
wage increase on the clear understanding "that if any group
within the Company received more than the terms of the three
year agreement as per the National Plan we will feel free to
seek same." Were the Court to recommend concession of the
Union's claim, it would lead to serious industrial relations
problems.
RECOMMENDATION:
10. The Court, having considered the submissions made by the
parties recommends that the claimants should accept the terms of
the National Plan effective from 1st January, 1988. The Court
does not recommend concession of the union's claims for additional
increments or bonus payments arising from the acquisition of the
Ault & Wiborg paint business.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
___________________________
7th October, 1988 Deputy Chairman
M.D./J.C.