Labour Court Database __________________________________________________________________________________ File Number: CD91398 Case Number: LCR13415 Section / Act: S26(1) Parties: G.H. LETT AND COMPANY - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union concerning payment of the 1st phase of the P.E.S.P.
Recommendation:
5. The Court has fully considered all of the issues raised by
the parties in their oral and written submissions.
The Court recommends that the terms of the Programme for Economic
and Social Progress should be implemented with effect from the
following dates.
1. 1st phase with effect from 1st July, 1991.
2. Arrears to be paid in full before 31st December, 1991.
3. 2nd phase with effect from 1st January, 1992.
The parties should immediately enter discussions on proposals to
address the financial situation. These discussions to be
completed within one month of the date of issue of this
recommendation.
In the event of any disagreement the Court shall be available to
assist the parties find a resolution.
Division: MrMcGrath Mr Brennan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD91398 RECOMMENDATION NO. LCR13415
THE LABOUR COURT
INDUSTRIAL RELATIONS ACTS 1946 TO 1990
SECTION 26, INDUSTRIAL RELATIONS ACT, 1990
PARTIES: G.H. LETT AND COMPANY
(Represented by the Federation of Irish Employers)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union concerning payment of the 1st phase of the
P.E.S.P.
BACKGROUND:
2. The Company is involved in wholesale beverage distribution.
The Programme for National Recovery expired in the Company on 31st
December, 1990, and in January, 1991, the Union sought to
negotiate a new agreement. Negotiations were postponed pending
the outcome of negotiations at national level. Following
agreement nationally on the Programme for Economic and Social
Progress (P.E.S.P.), the Union requested that its terms be
implemented. The Company informed the Union that it was
experiencing financial difficulties and consequently was not in a
position to meet the terms of the P.E.S.P. Local discussions
failed to resolve the matter and on 21st May, 1991 the issue was
referred to the conciliation service of the Labour Relations
Commission. During the course of two conciliation conferences
held on 19th June and 11th July, 1991, the following settlement
proposals emerged.
(a) The Company would pay the terms of the P.E.S.P. from 1st
July, 1991 and
(b) There would be a phased payment of the arrears due from
January, 1991, as soon as possible.
This was to be contingent on the Union entering immediately into
discussions on a revised scheme of payments based on the number of
cases delivered and number of drops, following which the arrears
would be paid. This proposal was rejected by the Union who, while
agreeing to enter discussions, was not prepared to accept any
delay in the implementation of the terms of the P.E.S.P. No
agreement was reached and the Commission reported to the Court in
accordance with Section 26(1) of the Industrial Relations Act,
1990. On 30th July, 1991, the parties requested the Court to
investigate the dispute. The Court investigated the dispute on
19th September, 1991.
UNION'S ARGUMENTS:
3. The "Social Partners" agreed that the P.E.S.P. would succeed
the P.N.R. The Union requests the Court to recommend that the
terms of the P.E.S.P. be implemented from 1st January, 1991 and
that all arrears be paid immediately.
COMPANY'S ARGUMENTS:
4. 1. The Company is undergoing a serious cashflow problem and
has suffered serious losses over the past twelve months. The
Company is under instructions from its bankers that cost
savings will have to be achieved immediately.
2. In the past, the bulk of the Company's business was
distributing bottled beers, where there was a 21% profit
margin. Over the last few years the trend has changed to
distributing minerals, where profit margins are only 7%. The
Company is also faced with heavy competition in an industry
where the recent trend has been towards mergers.
3. The Company's labour costs are far too high. It has
been the practice not to lay staff off during slack periods
but this will have to change in order to keep costs down.
4. Discussions have not taken place with the Union
regarding changes required by the Company because the Union
insists that arrears be paid immediately. The Company feels
that this is unreasonable. It cannot be forced into a
situation of paying arrears and then having talks on
cost-savings either prolonged or put on the long finger. The
Company believes that the proposal emanating from the
conciliation conferences is reasonable. The P.E.S.P. will be
paid but the Company must get some concession on cost
savings.
RECOMMENDATION:
5. The Court has fully considered all of the issues raised by
the parties in their oral and written submissions.
The Court recommends that the terms of the Programme for Economic
and Social Progress should be implemented with effect from the
following dates.
1. 1st phase with effect from 1st July, 1991.
2. Arrears to be paid in full before 31st December, 1991.
3. 2nd phase with effect from 1st January, 1992.
The parties should immediately enter discussions on proposals to
address the financial situation. These discussions to be
completed within one month of the date of issue of this
recommendation.
In the event of any disagreement the Court shall be available to
assist the parties find a resolution.
~
Signed on behalf of the Labour Court
2nd October, 1991 Tom McGrath
B.O'N. / M.O'C. _______________
Deputy Chairman