Labour Court Database __________________________________________________________________________________ File Number: CD88391 Case Number: LCR12028 Section / Act: S67 Parties: JOBMAN WORKWEAR LIMITED - and - NATIONAL UNION OF TAILORS AND GARMENT WORKERS |
Claim on behalf of 25 workers for the implementation of the current wage round from 1st January, 1988.
Recommendation:
6. The Court recommends that payment of the increases claimed in
respect of January and February be made in December, 1988 to those
workers to whom it is due, who are at that time still in their
employment of the Company.
Division: Mr O'Connell Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD88391 RECOMMENDATION NO. LCR12028
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: JOBMAN WORKWEAR LIMITED
and
NATIONAL UNION OF TAILORS AND GARMENT WORKERS
SUBJECT:
1. Claim on behalf of 25 workers for the implementation of the
current wage round from 1st January, 1988.
BACKGROUND:
2. The Company which is based in Cavan Town was established in
October, 1987. It manufactures fur-lined work wear for export and
is governed by the Shirtmaking Joint Labour Committee (J.L.C.).
The relevant Employment Regulation Order (E.R.O.) for payment of
the first phase increase in the Programme for National Recovery
(P.N.R.) came into effect on 1st March, 1988.
3. The Company implemented the increase from this date. The
Union is seeking the implementation of the increase from 1st
January, 1988. The matter was referred to the conciliation
service of the Labour Court on 9th March, 1988. A conciliation
conference was held on 3rd May, 1988. As no agreement was
possible both parties consented to a referral to the Labour Court
for investigation and recommendation. A Court hearing was held in
Cavan on 6th September, 1988 (a date suitable to the parties).
UNION'S ARGUMENTS:
4. 1. The expiry date of the last pay round in the clothing
industry was 31st December, 1987. Even though the
commencement date of the E.R.O. is 1st March, 1988 nearly all
the employers in the clothing industry have implemented its
terms with effect from 1st January, 1988.
2. Clause 5 of the P.N.R. states that "except where otherwise
agreed at local level, these arrangements shall apply from the
expiry dates of current Employer/Union Agreements." This
Union has stated quite clearly that it would be seeking
implementation of the terms with effect from 1st January, 1988
which is in accordance with the above clause.
3. Even though the Company have been in operation for a short
time the Union has been informed that it is in a break even
position. This is a great achievement for a company in these
circumstances.
4. Concession of the claim would cost very little to the
Company as there are only a small number of people involved in
the claim and not all of them have full service.
COMPANY'S ARGUMENTS:
5. 1. Prior to starting up production in November, 1987 a loss
of £35,000 was incurred. This was due to the cost of
modifications to the building which were in excess of the
budget done in March, 1987. Also the factory was not ready to
commence production as planned in August, 1987 due to the
building not being ready and delays in delivery of raw
material from the parent Company. These delays resulted in a
loss of sales revenue for two months and the Company had to
get a short term loan from the bank to make up this shortfall.
The interest on this short term loan was also an extra cost
which was not budgeted for.
2. It was originally planned that the Company would produce 4
styles in it's 1st year of manufacturing. The number of
styles had now increased to 6 and will result in longer
training periods with a corresponding drop in sales revenue.
3. The Companys accounts show that it has been operating at a
breakeven point for the last 5 months. The 1st payment of
£40,000 for the purchase of the factory has to be paid at the
end of March/April, 1988 after only 5 months of production
instead of the 7 months which was originally planned.
4. The request to pay back dated money for January and
February, 1988 was refused by the Company for the reasons
stated above.
RECOMMENDATION:
6. The Court recommends that payment of the increases claimed in
respect of January and February be made in December, 1988 to those
workers to whom it is due, who are at that time still in their
employment of the Company.
~
Signed on behalf of the Labour Court
John O'Connell
___________________________
16th September, 1988 Deputy Chairman.
M.D./J.C.