Labour Court Database __________________________________________________________________________________ File Number: CD88559 Case Number: LCR12092 Section / Act: S67 Parties: MANGAN BROTHERS LIMITED SLIGO - and - IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION |
Claim by the Union on behalf of 25 workers for an increase in wages under the 27th wage round.
Recommendation:
5. The Court recommends that pay rates be increased in accordance
with the terms of the Agreement reached under the aegis of the
Programme for National Recovery.
Division: CHAIRMAN Mr Heffernan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD88559 RECOMMENDATION NO. LCR12092
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: MANGAN BROTHERS LIMITED SLIGO
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION
SUBJECT:
1. Claim by the Union on behalf of 25 workers for an increase in
wages under the 27th wage round.
BACKGROUND:
2. The Company is engaged in the wholesale cash and carry
business and has a number of depots on the west coast, including
Sligo. The 26th wage round in the Sligo branch expired on 31st
December, 1987, and on 13th January, 1988, the Union submitted a
claim for a 10% increase for 12 months. In direct discussions
with the Company the Union indicated that the payment of the 27th
wage round settlement for the Sligo Distributive Trade would be
acceptable. This provides for 5% over 14 months (i.e. 3% from the
due date for 7 months, followed by 2% for seven months). The
Company offered to pay the terms of the Programme for National
Recovery. The Union rejected this, claiming that since 1977, when
the Company came to Sligo, parity with the Sligo Distributive
Trade settlements has been maintained. As no agreement could be
reached the matter was referred on 4th May, 1988, to the
conciliation service of the Labour Court. No agreement was
reached at a conciliation conference held on 6th July, 1988, and
the matter was referred on 19th July, 1988, to the Labour Court
for investigation and recommendation. A Court hearing took place
on 4th October, 1988, in Sligo.
UNION'S ARGUMENTS:
3. 1. There has been a direct relationship between the rates of
pay in the Company and the Sligo Distributive Trades since
1977, when the Company commenced business in Sligo, (details
supplied to the Court). The Company, during discussions, have
claimed that the direct link could not be maintained. The
Union opposes this as the Company has benefitted considerably
in financial terms from this link in previous years.
3. 2. The Sligo Distributive Trade rate was a service related
scale requiring six increments to reach the maximum compared
with an age related scale with the maximum adult rate applying
at 18 years of age, as is the case in the Company's other
depots. The advantage in Sligo is that the maximum point is
higher. The Union has told the Company that if they want to
break the link with Sligo Distributive Trade then the present
Company rate would have to be altered to an age related scale
with the present maximum point becoming the adult rate at 18
years.
COMPANY'S ARGUMENTS:
4. 1. Market circumstances, are having a very serious effect on
the viability of the business. The proximity of the border
makes the Company vulnerable to competition. Sales are being
affected significantly by emigration. Reduced purchasing by
retailers has increased the individual costs of customer
servicing and weakened the purchasing power of the Company
with manufacturers. The Company's difficulties and the
retrenchment and rationalisation measures which may have to be
adopted to overcome them have been explained in detail to the
Union.
2. The Company is of the view that in the circumstances, it's
offer of the terms of the Programme for National Recovery are
generous. To vary either the terms or the duration of the
offer would only serve to increase the growing pressure on the
business and it's ability to continue to provide it's existing
levels of employment.
3. The final and for the future, the most potentially ominous
development facing the Company is the move away from the small
local retailer towards larger units and multiples in urban
areas. Retail price competition has impacted upon many local
retailers and they in turn have increasingly threatend to
switch loyalties should wholesalers attempt to pass on price
increases.
RECOMMENDATION:
5. The Court recommends that pay rates be increased in accordance
with the terms of the Agreement reached under the aegis of the
Programme for National Recovery.
~
Signed on behalf of the Labour Court,
John M. Horgan
___________________
27th October, 1988.
B. O'N. / M. F. Chairman