Labour Court Database __________________________________________________________________________________ File Number: CD89637 Case Number: LCR12704 Section / Act: S67 Parties: MALLEE PRINT AND PACKAGING (HOLDINGS) LTD - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim for an increase in basic pay.
Recommendation:
5. The Court notes that the Company acknowledges that pay rates
for some of its staff are below an appropriate level and that this
short-coming would be addressed immediately but for the business
difficulties being experienced at present. The Company also
recognises that the workers have been co-operative in time of
difficulty. The Court therefore recommends that from 1st May,
1990 the pay rates of workers engaged in the software operation
and also the print-assistants receive a wage increase of #5 per
week and that negotiations then take place on the appropriate
rates for all workers and the arrangements for implementation.
Division: CHAIRMAN Mr Keogh Mr O'Murchu
Text of Document__________________________________________________________________
CD89637 RECOMMENDATION NO. LCR12704
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: MALLEE PRINT AND PACKAGING (HOLDINGS) LTD
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for an increase in basic pay.
BACKGROUND:
2. This Company is engaged in the printing and packaging
industry, at Ballindine and Ballyhaunis (factory in Knock is
vacant). It employees 35 workers, which includes 14 in software
packaging 11 in printing. Administrative staff, drivers and
graphic designers are the balance of the workforce. (Graphic
designers are not included in the claim). Towards the end of
1986, the Union wrote to the Company requesting discussions on the
rates of pay of its members employed in the print and packaging
side of the Company. It sought the industrial basic rate per
week:-
for Machine Operators - #160.00, for Print Assistants - #100.00 to
#120.00 and Maintenance - #160.00.
Trading difficulties occurred during the summer of 1989 with the
decreasing loss of marketing sales to the Computer-ware industry.
The Company had to rationalise its packaging production and
workers were laid off. It informed the Union and its workers of
its financial and business difficulties and asked for a deferral
of any further increase in their basic pay until the Company had
recovered sufficiently to pay a more acceptable rate. The Union
rejected this proposal and requested long term commitments and
guarantees on the future of the plants.
Agreement was not reached at local level and the matter was
referred to the Conciliation service of the Labour Court.
A Conciliation conference took place on 12th September, 1989. No
agreement was reached. The matter was referred to the Court for
investigation and recommendation. The Court heard the case on 6th
December, 1989. The earliest date agreeable to both parties.
UNION'S ARGUMENTS:
3. 1. The Company's rates of pay are well below general
industrial standards (Details supplied to the Court).
Workers, engaged in the production of cases for the computer
software manuals, are being paid #100.00 per week. Within
recent months, workers who were appointed to this area
commenced on a wage of #60.00 per week and would move onto the
"Job Rate" following a three month probationary period. While
the workers within the Company are aware of the financial
difficulties which the Company is experiencing, the staff
morale and ongoing conditions of low pay are unacceptable.
3. 2. The Court was now being asked to recommend an increase
in the basic pay rate for the Printers Assistants and the
Software workers in line with the average for this industry.
COMPANY'S ARGUMENTS:
4. 1. A substantial loss to the Company occurred with the
transfer of the plant to Ballyhaunis and its establishment
there. It took approximately three months for the operation
to reach the required standard and as a result, incurred a
huge loss in revenue. Machinery cost #40,000 thirty years
ago. This machinery is now dated and breakdowns are frequent.
2. In order to trade out of these difficulties and ensure
its survival the Company had to suspend payment to the
Creditors and make economies.
RECOMMENDATION:
5. The Court notes that the Company acknowledges that pay rates
for some of its staff are below an appropriate level and that this
short-coming would be addressed immediately but for the business
difficulties being experienced at present. The Company also
recognises that the workers have been co-operative in time of
difficulty. The Court therefore recommends that from 1st May,
1990 the pay rates of workers engaged in the software operation
and also the print-assistants receive a wage increase of #5 per
week and that negotiations then take place on the appropriate
rates for all workers and the arrangements for implementation.
~
Signed on behalf of the Labour Court
Kevin Heffernan
16th January, 1990 ----------------
M.N./U.S. Chairman