Labour Court Database __________________________________________________________________________________ File Number: CD91562 Case Number: LCR13501 Section / Act: S26(1) Parties: IRISH SOFT DRINKS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union for payment of the 1st phase of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
Having considered the submissions the Court is satisfied that
there is merit in the Union's claim and accordingly recommends
that the first phase of the P.E.S.P.(i.e. 4%) should be paid
with effect from 18th March, 1991.
Division: Ms Owens Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD91562 RECOMMENDATION NO. LCR13501
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: IRISH SOFT DRINKS LIMITED
(Represented by the Federation of Irish Employers)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union for payment of the 1st phase of the
Programme for Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. 1. The Company has been in existence since 1944 and was
originally a family business. From October 1986 to
August 1990 the Company was a subsidiary of the John
Daly Group (Coca Cola Bottlers) and manufactured squash
and cordials for sale in the home market. Since August
1990 Irish Soft Drinks Ltd. has been a privately owned
company. Prior to August, 1990 short-time working was
a regular feature of employment with the Company.
Since the change in ownership the Company has
restructed its business and virtually eliminated
short-time working. The Union represents 7 workers in
the clerical and general operative grades.
2. 2. The Union is claiming payment of the 4% pay increase
due under the 1st phase of the P.E.S.P. from 18th
March, 1991. The Company is claiming inability to pay
the claim. No agreement was reached at local level
discussions and the matter was referred on 3rd May,
1991 to the Labour Relations Commission. Conciliation
conferences were held on 24th July, 1991 and 10th
October, 1991 during which the Company offered to pay a
2% pay increase from 1st July, 1991, with consideration
of payment of the remaining 2% in January 1992 (without
commitment). The Union rejected the offer, and as no
further progress could be made the dispute was referred
to the Labour Court on 23rd October, 1991 in accordance
with Section 26(1) of the Industrial Relations Act,
1990. The Court investigated the dispute on 26th
November, 1991. The Company subsequently submitted
details of its financial circumstances to the Court on
a private and confidential basis.
UNION'S ARGUMENTS:
3. 1. Since the change of ownership and the reduction in
short-time working there has been an improvement in
production levels and increased sales. The Company is
in a good trading position and should pay the modest
increase due under the 1st phase of the P.E.S.P.
2. There is no inability to pay clause in the P.E.S.P. and
there is an onus on the Company to negotiate on the pay
increase due under the 1st phase. The Company has not
produced any financial statement to the Union to
substantiate it's claim of inability to pay.
3. The rates of pay in the Company are not governed by the
Aerated Water and Wholesale Bottling Joint Labour
Committee (J.L.C.). The Company is trying to bring
it's pay rates nearer to the J.L.C. minimum rates by
restricting and delaying increases due under the
P.E.S.P.
COMPANY'S ARGUMENTS:
4. 1. The Company is pleading inability to pay the 1st phase
of the P.E.S.P. on the basis that clause 2 provides
that pay increases shall be negotiated with regard to
the "economic and commercial circumstances" of the
particular firm in question. The effective date of
implementation of the P.E.S.P. is 22nd April, 1991.
2. The Company has just completed its first year of new
ownership and has re-structured it's business to
concentrate of high volume sales with a tight profit
margin. In those circumstances the Company cannot
afford increased wage costs.
3. Prior to the change of ownership short-time working was
a regular feature of employment. Due to the
re-structuring of the business the Company has
virtually eliminated short-time working and the workers
have benefited from considerable overtime
opportunities.
4. The Company's pay and conditions of employment are
governed by the Aerated Waters and Wholesale Bottling
Joint Labour Committee. The weekly minimum wage rate
as per the Employment Regulation Order is £135.18 for
workers of 18 years of age and over. The actual wages
rates implemented by the Company are significantly
above the J.L.C. minimum rates.
5. The Company is prepared to submit financial statements
to the Court in support of its claim that it is not in
a position to pay the 1st phase of the P.E.S.P.
(details supplied to the Court subsequent to the
hearing).
RECOMMENDATION:
Having considered the submissions the Court is satisfied that
there is merit in the Union's claim and accordingly recommends
that the first phase of the P.E.S.P.(i.e. 4%) should be paid
with effect from 18th March, 1991.
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Signed on behalf of the Labour Court
Evelyn Owens
17th December, 1991
A.S./N.M. ---------------------
Deputy Chairman