Labour Court Database __________________________________________________________________________________ File Number: CD88661 Case Number: LCR12271 Section / Act: S67 Parties: CORBETT AND SONS LIMITED - and - UNION OF CONSTRUCTION, ALLIED TRADES AND TECHNICIANS |
Claim, for an increase in wages for seven workers and increased redundancy payments to three former workers.
Recommendation:
5. Having considered the submissions made by the parties and in
the absence of the Company's recent financial accounts, the Court
recommends that the Company should implement Labour Court
Recommendation No. 11562 dated 3rd December, 1987 with effect from
1st January, 1989.
The Court also recommends that the parties should now meet to
discuss the application of the terms of the National Plan. As
regards the union's claim in relation to the redundancy payment
for the three employees made redundant, the Court recommends that
the 3% wage increase recommended in Labour Court Recommendation
No. 11562 should be reckoned in the calculation of their payments.
Division: Mr Fitzgerald Mr Shiel Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD88661 RECOMMENDATION NO. LCR12271
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: CORBETT AND SONS LIMITED
(Represented by the Federated Union of Employers)
and
UNION OF CONSTRUCTION, ALLIED TRADES AND TECHNICIANS
SUBJECT:
1. Claim, for an increase in wages for seven workers and
increased redundancy payments to three former workers.
BACKGROUND:
2. The 25th wage round expired for the workers on 30th June,
1986. A claim for an increase under the 26th round was delayed as
the Company claimed inability to pay. The matter was the subject
of a Labour Court hearing and Labour Court Recommendation No.
11562 dated 3rd December, 1987 states:-
"The Court, having considered the submissions made by
the parties, accepts that a sum of 3% is due to the
workers concerned in respect of the 26th round pay
claim, but is satisfied that in the present
circumstances it is not possible for the Company to
concede any increase at this time."
The Union sought implementation of the 3% increase and a meeting
with management took place in April, 1988 at which no agreement
was reached. Three workers have been made redundant since
December 1987 and the Union also sought to have their redundancy
payments increased by the amount of the outstanding pay rounds.
The matter was referred, on 21st July, 1988, to the Conciliation
Service of the Labour Court and a conciliation conference was held
on 17th August, 1988. Again, no agreement was reached and the
matter was referred to a full hearing of the Labour Court. The
hearing took place on 19th October, 1988 in Galway.
UNION'S ARGUMENTS:
3. 1. The workers have not received any increase in pay since
1986. Most other workers have had two wage rounds applied in
this period of time. The Union is currently seeking
implementation of Labour Court Recommendation No. 11562 and a
wage increase under the terms of the Programme for National
Recovery.
2. The current rate of pay is #147.09 per week. This is
more than #20 less than a craftsman's wage in other joinery
manufacturers or in the construction industry. Up to 1986
this Company awarded wage increases similar to those in the
construction industry and joinery shops around the country.
3. In relation to redundancy, the workers in question were
long serving and loyal employees. The wage increases due
should be taken into account when calculating their redundancy
pay.
4. The workers have shown a lot of patience and have taken
the Company's position into account. The current claim is a
modest and realistic one.
COMPANY'S ARGUMENTS:
4. 1. The Company is in a worse financial position now than it
was a year ago. In the period since then it has effectively
closed its trading operation in the city centre. Only the
builders providers at Wellpark continues to trade, with 19
employees. The Company has run into very serious difficulties
trying to fund the redundancy payments awarded by the Court in
respect of the first group to be let go from William Street.
It was agreed that the proposals be implemented on a phased
basis in three instalments. The agreement was subsequently
extended to the redundancies in this case. Unfortunately the
Company now finds that it does not have the resources needed
to pay the second phase of the settlement and discussions on
that issue are continuing.
2. The Company cannot afford any pay increase at this time.
To award an increase would jeopardise the continuing Wellpark
operation which lost a considerable sum of money last year and
which continues to trade at a loss. The operation is under
on-going review.
3. In relation to redundancy pay the workers have all
received their statutory entitlements.
RECOMMENDATION:
5. Having considered the submissions made by the parties and in
the absence of the Company's recent financial accounts, the Court
recommends that the Company should implement Labour Court
Recommendation No. 11562 dated 3rd December, 1987 with effect from
1st January, 1989.
The Court also recommends that the parties should now meet to
discuss the application of the terms of the National Plan. As
regards the union's claim in relation to the redundancy payment
for the three employees made redundant, the Court recommends that
the 3% wage increase recommended in Labour Court Recommendation
No. 11562 should be reckoned in the calculation of their payments.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
10th February, 1989 -------------------
A.K./U.S. Deputy Chairman