Labour Court Database __________________________________________________________________________________ File Number: CD89683 Case Number: LCR12683 Section / Act: S67 Parties: JIC FOR THE BAKERY AND FLOUR CONFECTIONERY TRADE - and - BAKERY AND FOOD WORKERS' AMALGAMATED UNION;SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the implementation of a wage increase under the Programme for National Recovery (P.N.R.) since 1st April, 1989.
Recommendation:
6. The Court having considered the submissions of the parties
recommends that the terms of the Programme for National Recovery
be implemented as per the J.I.C. agreement of 9th February, 1988
with effect from 1st October, 1989.
The Court further recommends that any monies outstanding under the
agreement should be paid on or before 1st April, 1990.
Division: MrMcGrath Mr Brennan Mr Devine
Text of Document__________________________________________________________________
CD89683 RECOMMENDATION NO. LCR12683
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: JIC FOR THE BAKERY AND FLOUR CONFECTIONERY TRADE
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
BAKERY AND FOOD WORKERS' AMALGAMATED UNION
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the implementation of a wage increase under
the Programme for National Recovery (P.N.R.) since 1st April,
1989.
BACKGROUND:
2. At a meeting of the Joint Industrial Council (J.I.C.) for the
Bakery and Flour Confectionery Trade Industry held on the 9th
February, 1989 agreement was reached that the increases provided
for under the P.N.R. should be implemented on the 1st April of
each year, 1988, 1989 and 1990, the agreement to terminate on 31st
March, 1991. It was agreed that, due to economic circumstances,
if any Company could not pay, the matter would be referred to the
conciliation service of the Labour Court and if necessary to the
Labour Court for a full Court hearing. The Unions maintain that
if there were a significant number of employers pleading inability
to pay then the issue would be dealt with on a national basis.
3. Most of the companies implemented the first phase of the
P.N.R. The Unions' wrote to the Employers concerning the
implementation of the second phase of the agreement from 1st
April, 1989. A number of Employers responded that they would not
be in a position to pay due to inability and that these companies
should be dealt with on an individual basis, and not on an
industry basis. A meeting of the J.I.C. was held on 27th July,
1989 to discuss the matter. No agreement was reached and the
parties agreed to a referral to the Labour Court for investigation
and recommendation. A Court hearing was held on the 10th October,
1989. The hearing was adjourned in order that the parties could
clarify the number of employers affected by the claim. A resumed
hearing was held on 11th December following which the Court issued
its recommendation by letter dated 12th December, 1989.
UNIONS' ARGUMENTS:
4. 1. The workers concerned are entitled to the 2nd phase
increase under the P.N.R. plus full retrospection to 1st
April, 1989 following the agreement reached at the J.I.C. in
February, 1988.
2. The Employers have argued that the traditional bread
industry has been in crises for a number of years and a number
of companies have ceased trading as a result. However the
companies which ceased trading did so as a result of
circumstances other than wages i.e. below cost selling failure
to modernise etc.
3. A number of the workers concerned are low paid. The
increases if applied would amount to #4 aweek. The P.N.R. has
special provisions for low paid workers. On the Provender
Milling side, which is another industry with low paid workers,
the increases have been granted as the workers there are
covered by statute.
EMPLOYER'S ARGUMENTS:
5. 1. The traditional bakery industry has been decimated over
the last number of years as a large number of companies have
closed as they could not trade under a sustained loss making
situation. Parallel to this decline and closure relatively
new companies have continued to expand and develop. These
have been able to take full advantage of cost inefficiencies
of the traditional companies. These companies can produce
bread at prices that are not viable for companies with higher
cost bases.
2. Those traditional companies that have survived are
attempting to adjust and re-organise in a planned and
co-ordinated manner. They have operated in a loss making
situation in the expectation that they will be able to adjust
and compete on a viable basis in the long term.
3. The level of price reduction that was introduced into the
market place precipitating the current crisis could not have
been anticipated or planned for. It is not a sustainable
price level, however, while it continues it will mean that
some companies will have to reduce costs in all areas
including wages and salary merely to survive and there is no
way that these companies can afford either element of phase
two of the P.N.R., specifically retrospection or ongoing
increase in costs.
RECOMMENDATION:
6. The Court having considered the submissions of the parties
recommends that the terms of the Programme for National Recovery
be implemented as per the J.I.C. agreement of 9th February, 1988
with effect from 1st October, 1989.
The Court further recommends that any monies outstanding under the
agreement should be paid on or before 1st April, 1990.
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Signed on behalf of the Labour Court
Tom McGrath
____________________________
9th February, 1990. Deputy Chairman
M.D./J.C.