Labour Court Database __________________________________________________________________________________ File Number: CD91129 Case Number: LCR13430 Section / Act: S67 Parties: BALLYFREE FARMS LTD - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claims for an increase in wage rates and annual leave.
Recommendation:
8. The Court has considered the submissions made by the parties.
Whilst noting the adjustments made by the current employers since
they took over the firm the Court is not satisfied that the
present wage system equates to similar structures in reasonably
comparable employments insofar as the current semi-skilled rate
and strictly speaking the basic general workers' rate may be
considered as permanent in the sense that workers holding them
have no in built right to progress to the skilled rate, by reason
of service and/or experience.
In order to establish a reasonably comparable structure the Court
recommends that the present basic rate be amended to an adult
entry rate payable in respect of the first year of service with
automatic movement thereafter to the basic rate (i.e. the present
semi-skilled rate) and that the present skilled rate be considered
a promotional rate.
The Court further recommends that over and above the terms of the
P.E.S.P. the new entry rate be increased by two phases of #2.50
per week, the first with immediate effect, the second 1 year
thereafter to #118 per week.
It recommends that the proposed basic rate also be increased by
two similar phases of #5 per week to #138 per week and that the
skilled rate be similarly increased by two phases of #2.50 to #153
per week.
On the basis of the information provided the rates recommended
above are not definitive and the Court further recommends that
they be reviewed by the parties and if necessary by a further
investigation by the Court in the light of circumstances
prevailing two years from the date of this recommendation.
Division: Mr O'Connell Mr Brennan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD91129 RECOMMENDATION NO. LCR13430
THE LABOUR COURT
INDUSTRIAL RELATIONS ACT, 1946 TO 1990
SECTION 67 INDUSTRIAL RELATIONS ACT, 1946
PARTIES: BALLYFREE FARMS LTD
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claims for an increase in wage rates and annual leave.
BACKGROUND:
2. Ballyfree Farms, which is situated in Co. Wicklow, employs 53
people in the processing of chicken and turkey meat for the home
and U.K. markets. The Company was acquired by the Kerry Group as
a going concern in 1988. At that time the first phase of the
Programme for National Recovery (P.N.R.) had been paid.
3. The Company introduced a grading system as there was no formal
wage structure. This resulted in approximately half of the
workforce receiving increases which avereged #12 a week. Some
employees were on high wage rates for historical reasons and these
were red circled. Holiday entitlements, which were 19 days per
annum, were not changed.
4. The current rates of pay and grading structure are as
follows:-
General Worker #113
Semi-Skilled #128
Skilled #144.08
5. In September, 1989 the Union sought a meeting to discuss pay
and conditions of employment. Following a meeting held in
January, 1990, management presented a draft comprehensive
agreement. There were a number of issues on which agreement was
not reached and these matters were referred to the conciliation
service of the Labour Court. Conciliation conferences were held
on 1st March, 1990 and 23rd August, 1990. Agreement was reached
on all issues with the exception of pay and annual leave
entitlements. The parties subsequently consented to a referral to
the Labour Court for investigation and recommendation. A Court
hearing was held in Arklow on 10th September, 1991.
UNION'S ARGUMENTS:
6. 1. The rates of wages paid are out of line when compared to
the rates paid in local industry and to other poultry plants
nationally (details supplied to the Court). Most poulty
processing plants have a bonus scheme. The Company do not
operate a bonus scheme.
2. The Programme for Economic and Social Progress
(P.E.S.P.) provides that issues of low pay can be addressed.
3. The Union is seeking an increase in annual leave
entitlement from 19 to 20 days which is the norm generally in
industry and among the Company's competitors.
COMPANY'S ARGUMENTS:
7. 1. The Company has already granted substantial increases to
the majority of the workforce and honourd the
terms of the P.N.R and is committed to the terms of P.E.S.P.
2. The Company is operating in a difficult marketing
environment. It has secured some new customers in the U.K.
but it must consolidate its position. Cost is a major factor
if it is to consolidate its position.
3. The Company's labour and raw material costs are higher
than its English and European competitors.
4. The annual leave entitlements are in line with the
Company's sister plant in Monaghan.
RECOMMENDATION:
8. The Court has considered the submissions made by the parties.
Whilst noting the adjustments made by the current employers since
they took over the firm the Court is not satisfied that the
present wage system equates to similar structures in reasonably
comparable employments insofar as the current semi-skilled rate
and strictly speaking the basic general workers' rate may be
considered as permanent in the sense that workers holding them
have no in built right to progress to the skilled rate, by reason
of service and/or experience.
In order to establish a reasonably comparable structure the Court
recommends that the present basic rate be amended to an adult
entry rate payable in respect of the first year of service with
automatic movement thereafter to the basic rate (i.e. the present
semi-skilled rate) and that the present skilled rate be considered
a promotional rate.
The Court further recommends that over and above the terms of the
P.E.S.P. the new entry rate be increased by two phases of #2.50
per week, the first with immediate effect, the second 1 year
thereafter to #118 per week.
It recommends that the proposed basic rate also be increased by
two similar phases of #5 per week to #138 per week and that the
skilled rate be similarly increased by two phases of #2.50 to #153
per week.
On the basis of the information provided the rates recommended
above are not definitive and the Court further recommends that
they be reviewed by the parties and if necessary by a further
investigation by the Court in the light of circumstances
prevailing two years from the date of this recommendation.
~
Signed on behalf of the Labour Court
John O'Connell
--------------------
7th October, 1991
M.D./U.S. Deputy Chairman