Labour Court Database __________________________________________________________________________________ File Number: CD89366 Case Number: LCR12474 Section / Act: S67 Parties: KMP CORK - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim on behalf of approximately 100 workers for an increase in wage rates.
Recommendation:
5. The Court recognises that the rates of pay in this Company are
low by comparison with other companies in the meat industry.
However, as the business performance since the inception of the
Company three years ago has not given the Company a financial
return to enable it to offer increases other than the terms of the
PNR, the Court recommends that the Union accept that offer.
Division: CHAIRMAN Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD89366 RECOMMENDATION NO. LCR12474
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: KMP CORK
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim on behalf of approximately 100 workers for an increase
in wage rates.
BACKGROUND:
2. The Company was taken over by the Kerry Group in 1986 and is
involved in the killing of cattle and production of beef for both
the home and export markets. The claimants' last wage agreement
expired on the 31st October, 1988, and the Union sought an
increase in excess of the terms of the Programme for National
Recovery (PNR) on the basis that the previous general manager had
given an undertaking in 1986 that when that wage agreement
expired, the rates would be adjusted substantially. The Union
also argued that the Company's rates of pay were the lowest in the
entire beef sector (Grade A #134.40 and Grade B #127.90). The
Company offered the terms of the PNR. This was rejected by the
Union and the matter was referred to the conciliation service of
the Labour Court on the 5th December, 1988. No agreement was
reached at a conciliation conference on the 3rd February, 1989 and
on the 17th May the Union requested that the matter be referred to
the Labour Court for investigation and recommendation. The
Company agreed to the referral on the 23rd May. A Court hearing
was held in Cork on the 28th June, 1989.
UNION'S ARGUMENTS:
3. 1. When the Company took over the beef processing plant in
1986 the Union negotiated a 2.50 year agreement providing for an
increase of #3.70 in rates of pay on the understanding that
when the next wage round became due meaningful increases would
be conceded. This commitment was given by the then general
manager.
2. The present rates of pay are the lowest in the beef
sector in Ireland (details supplied to the Court). There is
no bonus paid.
3. Some of the claimants have not worked a full week since
1986 and many have been on a two-day week for six months.
Only those in the shipping area are on a full week.
COMPANY'S ARGUMENTS:
4. 1. The offer to pay the terms of the PNR (the claimants
would qualify for the #4 minimum payment) was made inspite of
the difficulties being experienced in the beef industry over
the past two years.
2. The terms of the PNR give scope to industry to justify
non payment if they can justify an inability to pay. In the
current circumstances the Company could make such arguments
but it was decided at an early stage to agree to pay the PNR
on the basis of the good working relationships which exist in
the plant.
3. The Company sees no grounds on which a claim over and
above the terms of the PNR can be justified and it therefore
requests the Court to uphold the offer it has made.
RECOMMENDATION:
5. The Court recognises that the rates of pay in this Company are
low by comparison with other companies in the meat industry.
However, as the business performance since the inception of the
Company three years ago has not given the Company a financial
return to enable it to offer increases other than the terms of the
PNR, the Court recommends that the Union accept that offer.
~
Signed on behalf of the Labour Court
Kevin Heffernan
18th July, 1989 ----------------
D.H./U.S. Chairman